Memory shortages are continuing to push up the cost of modern technology, including computers, consoles, tablets and phones. Samsung now expects the supply squeeze to intensify during 2027 rather than settle down.
As reported by TechCrunch on July 31, Samsung said during its second-quarter earnings call that artificial intelligence companies and research labs are providing the memory manufacturer with medium- and long-term demand forecasts. These businesses are attempting to secure future chip supplies in advance.
AI demand is tightening memory supplies
Samsung produces and sells roughly one-third of the world’s memory chips. Based on the demand information it is receiving from AI businesses, the company expects memory requirements to rise again in 2027. That would create further supply constraints and could result in additional price increases across tablets, PCs, consoles and smartphones.
Samsung also indicated that the combination of high demand and restricted supply may continue at least into 2028. For shoppers considering an arcade machine, this broader hardware market remains relevant because computers, displays, storage and other electronic components can all be affected by rising manufacturing costs.
What the shortage means for gaming hardware
The ongoing DRAM shortage, sometimes nicknamed “RAMageddon”, has been a major contributor to technology price rises over approximately the past 16 months. Xbox and PlayStation consoles are more expensive than before, while Apple has raised prices on some lower-cost devices and introduced pay-later options.
Even retro products and child-friendly mini-consoles have faced higher prices. Companies such as Valve are also competing for memory against AI hyperscalers, research laboratories and data-centre operators. Buyers comparing a compact bartop arcade with other home entertainment hardware may therefore want to factor wider component costs into their budget.
Why Samsung benefits
The shortage is commercially advantageous for Samsung’s memory business. Although its consumer devices are not selling as strongly as previously, the company is earning substantial revenue by prioritising larger customers that sign long-term agreements for memory supplies lasting months or years.
That arrangement creates a difficult choice for companies such as Valve. Refusing to accept higher prices from Samsung or other memory manufacturers could make it harder to secure the RAM they need at all. For arcade owners planning upgrades, access to replacement arcade parts and suitable computer hardware may remain an important consideration.
For practical advice on evaluating hardware, space and costs before buying, see RETROCADE’s Arcade Machine Buying Guide.
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