The Rise in RAM Prices Will Have a Devastating Impact on PC and Next-Gen Consoles, Says Epic Games CEO

Tim Sweeney, founder and CEO of Epic Games, has commented on the recent rise in RAM prices, warning that the situation will have a devastating impact on PCs and next-generation consoles — and, more broadly, on high-end gaming — for several years to come.

Responding on X (formerly Twitter), Sweeney said that the ongoing increase in RAM prices will have long-term effects that could last for several years, given what is currently happening in the tech industry.

The main cause, he explained, is the growing demand for artificial intelligence (AI), supported by massive investments that far exceed what the standard consumer market can generate in return.

A Crisis Worse Than the GPU Shortage

According to Sweeney (thanks Twisted Voxel), this could turn out to be an even worse situation than the GPU shortage caused by the cryptocurrency mining boom, which led to higher prices and limited availability. Behind the current AI boom, he said, is a massive flow of money with no equal in recent history.

This situation is driving manufacturers to prioritize production for AI data centers instead of consumer devices, which will likely lead to higher prices and reduced availability for regular users.

“Factories are diverting leading edge DRAM capacity to meet AI needs where data centers are bidding far higher than consumer device makers,” Sweeney explained.

This shift could have devastating effects on the gaming market. Not only PC manufacturers but also console producers will face problems due to limited supply and higher component costs.

A shortage of RAM for the consumer market might also affect the development of future graphics cards, as well as next-generation consoles such as the PlayStation 6 and next Xbox, potentially resulting in higher prices and possibly lower memory specifications.

Furthermore, analysts believe that the high cost of RAM is one of the main reasons why Valve has not yet announced the price of the Steam Machine. Tariffs and the inability to sell hardware at a loss have also been cited as contributing factors.