Consumer Tech

This Console Generation Will Not Get Cheaper

Nintendo lifts the Switch 2 to 499.99 euros on 1 September, Sony has raised the PS5 twice in a year, and Valve added up to 240 euros to the Steam Deck. For the first time in the console era, the machines get dearer years after launch, and the cause is AI memory demand.

Consumer TechBy Servola Tech Desk2026-07-073 min read

AI-assisted, edited by humans. | Editor-in-Chief: Leon Soliman | Editorial standards

This Console Generation Will Not Get Cheaper

Key takeaways

Nintendo lifts the Switch 2 to 499.99 euros on 1 September 2026, Sony has raised the PS5 twice in under a year to 100 euros dearer across Europe, and Valve added up to 240 euros to the Steam Deck OLED, so every major console is now getting more expensive years after launch instead of cheaper.
The single cause is memory: AI data centres now take about 40 percent of the world's DRAM, and TrendForce put contract price rises at 55 to 60 percent in the first quarter of 2026 and 58 to 63 percent in the second, so console makers are outbid for the same chips by server buyers.
Consoles have always fallen in price over their life because they are sold near cost to profit on games, and that model is breaking: the reported 960 dollar bill of materials for the PS6 points to a next generation sold at a profit, so waiting for the usual mid-life price cut is the wrong plan this time.

The machines that got more expensive in 2026

Nintendo will raise the Switch 2 to 499.99 euros across Europe from 1 September 2026, up from 469.99 euros, a change the company set out in its fiscal earnings on 8 May and blamed on memory chip prices inflated by the AI boom, US tariffs, and unfavourable exchange rates. The same list price becomes 499.99 dollars in the United States and 59,980 yen in Japan. This is not a launch adjustment on a new product; it is a mid-life increase on a machine that has been on shelves for over a year.

Sony has gone further. Its March update, effective 2 April 2026, was the second PS5 price rise in under a year, lifting the standard console and the Digital Edition by 100 euros each in Europe and putting the PS5 Pro at 899.99 euros. Valve joined in during May, when the Steam Deck OLED returned from months of shortage at 779 euros for the 512 gigabyte model, up 210 euros, and 919 euros for the one terabyte model, up 240 euros, with no change to the hardware inside. Three different makers, one direction of travel.

The cheap console was always a bet on cheap memory

For four decades the console has been a razor sold to sell blades. Hardware went out at or below cost, the profit came from games, accessories, and subscriptions, and the machine reliably got cheaper as it aged. That model only works if the parts inside keep falling in price on schedule, which they always did. The mid-life price cut was not generosity; it was the plan.

Memory broke the plan. AI data centres now consume roughly 40 percent of the world's DRAM output, and the research firm TrendForce put conventional DRAM contract prices up 55 to 60 percent in the first quarter of 2026 and another 58 to 63 percent in the second. Suppliers are steering their fabs toward the high bandwidth memory that AI servers pay most for, leaving Sony, Nintendo, and Valve to bid for what is left. When a console maker and a hyperscaler want the same silicon, the console maker loses, and the price of the box moves up instead of down.

Waiting for a price cut is the wrong plan this time

The habit of every experienced buyer is to wait, because consoles always drift down. This generation will not reward that patience while memory stays scarce. If you want a Switch 2 at 469.99 euros, the practical deadline is 31 August, because the higher list price takes effect the next day; after that the discipline is to shop bundles and retailer promotions rather than expect the base price to retreat to old lows.

The next generation is being designed into the same ceiling. The reported bill of materials for the PS6 is around 960 dollars, which makes the old trick of selling the hardware at a loss and recovering it later far harder to justify. If Sony and its rivals price the next machines close to what they cost to build, the cheap-hardware, expensive-games bargain that defined gaming for forty years is ending. Owners who have been tracking the AI memory supercycle through data centres and phones should note that it has now reached the living room.

Frequently asked questions

Why are game consoles getting more expensive in 2026?

The main driver is memory. AI data centres now take roughly 40 percent of global DRAM output, and TrendForce reported conventional DRAM contract prices rising 55 to 60 percent in the first quarter of 2026 and 58 to 63 percent in the second. Memory suppliers prioritise the high bandwidth chips AI servers pay most for, so Sony, Nintendo, and Valve are outbid for the same components and pass the cost on.

When does the Nintendo Switch 2 price go up in Europe?

From 1 September 2026 the recommended price rises from 469.99 euros to 499.99 euros, a change Nintendo announced in its earnings on 8 May 2026. The old price applies until 31 August, so a buyer who wants the lower figure should purchase before the deadline. List prices are recommendations, and retailers may still offer bundles below them.

Will console prices come back down later in the generation?

A large drop is unlikely while the memory shortage lasts. Consoles historically fell in price because components got cheaper, but AI demand has reversed that for DRAM, and the reported 960 dollar bill of materials for the PS6 suggests the next generation will be built to a higher floor. Expect bundle deals rather than a return to launch-era low prices.

For forty years the console was the one piece of technology you could count on to get cheaper if you waited. That rule has quietly stopped applying. The AI build-out that pushed up the price of memory in data centres and phones has now reached the games machine under the television, and the buyers who understand why are the ones who will time their purchase instead of waiting for a cut that is not coming.

Consumer TechGamingPlayStation 5Nintendo Switch 2Steam DeckDRAMMemory Shortage

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