Core Viewpoint - The video game console industry is facing significant challenges due to rising memory chip prices, which could lead to increased costs for consumers and potentially lower demand for consoles [1][3]. Group 1: Industry Challenges - Sales of video game consoles are already under pressure from tariff issues and weak consumer spending [1]. - A surge in demand for dynamic random access memory (DRAM) chips, essential for gaming consoles, is outpacing supply as the tech sector focuses on artificial intelligence infrastructure [1][2]. - Memory chip manufacturers are prioritizing higher-margin data-center chips, further constraining supply for consumer devices [2]. Group 2: Price Increases - Console makers may need to raise prices due to increased chip costs, which could negatively impact demand following previous tariff-driven price hikes [3]. - Analysts predict that console prices could rise by 10% to 15% over the next one to two years, while PC prices could increase by as much as 30% due to rising memory prices [4][5]. Group 3: Market Forecasts - Counterpoint Research estimates that memory prices could rise by 30% in late 2025 and an additional 20% early next year, following a 50% increase this year [6]. - TrendForce has revised its growth forecast for the console market down to 5.8% for this year, from a previous estimate of 9.7%, and anticipates a 4.4% decline in 2026 [7]. - Spending on gaming hardware fell by 27% last month, with unit sales reaching their lowest level since 1995, as the average price of new gaming devices hit a record high [7].