Why tech companies are raising PC and console prices – and blaming AI for chip costs

James Bull, senior technology analyst at RSM UK, said the four biggest US tech companies are expected to spend billions of dollars on data centers and AI equipment by 2026.

“That demand for memory chips has created a shortage that the supply chain can’t keep up with,” he said.

Big tech and AI companies are also incentivized to prioritize consumer electronics by buying memory in bulk and paying for longer contracts, Bull added.

“Essentially, the MacBook on the consumer’s desk is now competing with and losing out to the same drams that data centers power ChatGipt with.”

Of course, some big tech companies like Microsoft have a foot in both camps — investing billions in AI infrastructure while making consumer products like the Xbox.

But the lack of memory and rising prices have been compounded by inflation and geopolitical factors, some say.

Sony cited “continued pressures on the global economic landscape” when announcing additional price increases to the PS5 console in the UK and worldwide.

Pierce Harding-Role’s Analysis of Ampere He said at the time. Along with the increase in RAM prices, additional inflation related to the war in Iran may also affect Sony’s price hike.

Hewson told the BBC that recent price increases “could go even higher as chipmakers deal with additional costs due to the blockade off the coast of Hormuz”.

“While the past few days have brought renewed hope that the situation in the Middle East is resolving, some of the impact of the past two months has now been reversed,” she added.