How AI Demand is Causing a Spike in Console and Handheld Costs

Growing component shortages are creating significant uncertainty throughout the handheld gaming market as prices rapidly escalate across major categories.

Hardware by Katmin on Dec 19, 2025

As things change quickly, many in the tech industry are becoming more worried. Changes in 2026, which is predicted to be a big year for mobile gaming, might instead bring big problems.

The problem could go beyond handhelds and affect gaming accessories and other equipment as well. Price spikes, supply strain, and component shortages are creating uncertainty in the future of consumer technology.

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Why We Say You Should Buy Your Handheld Now

We have always encouraged choosing the tech you want without overthinking the "next generation." Still, the current environment gives you a much more urgent reason to act now. The pressure isn't just on handheld gaming devices—it's on almost any computing device with RAM or storage. Prices for both are going up quickly, and the effects are already clear in the gaming world.

Prices for RAM and storage are rising due to high demand from AI companies, leading to shortages. Because of AI, RAM is currently going through the same thing that graphics cards did because of crypto. Flash storage is also being consumed rapidly as data centers expand, making the situation a double hit for consumers.

How AI Is Shifting the Market

AI data centers are consuming RAM and storage at extreme rates. We are beginning to see severe strain on supply chains, with manufacturers struggling to meet demand. Some sources say that businesses like Samsung have turned down requests to make their own phones since there aren't enough of them.

Micron, one of the largest makers of RAM, has left the consumer market entirely and now sells only to businesses that use AI. Their Crucial brand, which people have trusted for RAM and storage upgrades for a long time, is now almost gone.

A lot of people relied on Crucial for laptop upgrades, SSDs, and cheap RAM kits. A lot of us used Crucial's tools to choose the right gear for our needs. The brand's sudden departure isn't because they ran out of money; it's because there is so much demand for AI that consumer goods are no longer profitable for them.

How, AI Demand, Causing a Spike, Console, Handheld Costs, NoobFeed

How much does it cost to make handhelds and consoles

Cost of Switch 2 RAM has increased by 41%, while storage costs have increased by 8%. These price hikes have a big effect on the cost of making things. Nintendo usually keeps prices low by bundling software and peripherals with hardware. Still, it can't keep up with these huge price increases for long.

It is expected that the price of RAM for Xbox Series consoles will increase by $80 to $100 per device. Prices have already gone up in the past year, and it looks like they will go up again in the middle of the generation, which is virtually never the case. Depending on storage and accessory costs, you can see base console prices rise by 20% to 25%.

Handheld markets are really weak right now. The Asus ROG Ally X and Lenovo Legion Go are already close to the top of the price range for devices. Models that cost between $800 and $1000 in the US could see prices rise further as the cost of parts increases. MicroSD Express cards, which some gadgets require, are already pricey and may get even pricier due to high demand for flash storage.

Why it's important to act quickly

Console makers may temporarily deal with rising costs by buying parts in bulk and holding large inventories. This gives you some leeway when buying consoles at retailers, since the stock already there was bought at reduced prices.

But prices go up right away for RAM sticks, SSDs, and console storage expansions, since component vendors change prices in real time. In some places, a 32GB DDR5 RAM stick costs more than a PS5 Pro. The recent price increase for the Z2 portable models, from €999 to €1149, is one of the clearest signals that costs are rising.

This is only the beginning. If Nintendo's component costs rise 40%, OEM device makers like Asus and Lenovo cannot withstand similar increases without passing them on. You may see handhelds jump 15–20% or more in the coming months.

Even the upcoming Steam Machine, expected by some to cost around $500, will likely land much closer to $750–$1000 due to rising RAM and flash storage expenses.

Ripple Effect on Used Markets

Prices will go up for more than just new devices. The used markets will also go up. As retail prices go up, sellers may be able to make more money by selling used handhelds, consoles, and parts. Accessories like extra storage, console SSDs, and microSD Express cards will likely do the same.

What 2026 Might Look Like

We don't know for sure what will happen in 2026, but early signals are bad for the gaming industry as a whole. Higher manufacturing costs might make handheld devices much more expensive, harder to find, and delay scheduled releases. Gaming PCs, consoles, and accessories will also be under significant stress.

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