Lenovo executive director Martin Hiegl warned that DRAM and NAND memory prices are unlikely to return to their previous levels. This permanent shift in component costs directly impacts the pricing of consumer electronics and gaming hardware. Buyers should expect higher prices for new devices in the coming years as manufacturers absorb these increased expenses.
Lenovo executive warns of permanent memory cost increases
The comments came from Hiegl during a presentation at the ISC conference in Germany. Industry analysts interpret his statement as referring to a timeline of at least five years. This long-term outlook suggests that the current cost structure for memory chips is here to stay rather than being a temporary market fluctuation.
Microsoft reported that its memory costs more than doubled this year and expects another doubling by next year. The company raised the price of its Xbox consoles by $100 to $150 to offset these component expenses. Apple also increased hardware prices citing similar ongoing challenges in the component supply chain.
Micron executive Sumit Sadana attributed the price crisis to aggressive pricing strategies from customers. Meanwhile, market data shows the average price for new video game hardware reached $502 in May, a 14 percent increase from the previous year. This trend coincides with Xbox recording its worst sales month in history and PlayStation 5 sales dropping by 58 percent.
Valve confirmed that its upcoming Steam Machine will retail for over $1,000 due to these same memory cost pressures. The combination of rising component costs and declining console sales highlights the financial strain on hardware manufacturers. Consumers face a market where lower prices are no longer a viable expectation for new gaming devices.
Source: VideoGameChronicles
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