PS6 Delay and Switch 2 Price Hike Loom Amidst AI-Driven Chip Shortage

The burgeoning demand for memory chips, fueled by the rapid expansion of artificial intelligence, is poised to disrupt the console market, potentially delaying the release of Sony’s PlayStation 6 and increasing the price of Nintendo’s Switch 2. Reports indicate both companies are reassessing their hardware plans in response to a critical shortage and escalating costs of essential components.

PlayStation 6 Release Potentially Pushed to 2028 or 2029

Sony is reportedly considering delaying the launch of the PlayStation 6 until 2028 or even 2029, a significant setback to their initial plans IGN, GamesRadar+. This decision stems from the intense competition for memory chips, with companies like Nvidia and Google prioritizing them for their AI development IGN. The increased demand is driving up prices and limiting availability for other sectors, including consumer electronics.

Bloomberg’s reporting suggests that a delay to 2028 or 2029 would represent a “major upset” to Sony’s strategy of maintaining user engagement between console generations IGN.

Nintendo Weighs Price Increase for Switch 2

Nintendo is also facing the impact of the chip shortage, and is reportedly considering a price increase for the Switch 2 GamesRadar+, Forbes. The Switch 2 is already priced at $450, $150 more than the original Switch’s $300 launch price Forbes.

Nintendo president Shuntaro Furukawa recently stated the company is working to secure stable supplies of memory components through long-term partnerships, and that recent price increases hadn’t significantly impacted profitability in the third quarter IGN. However, the potential for further price increases remains a concern.

The AI-Fueled Chip Crisis: A Broader Impact

The current situation highlights the broader impact of the AI boom on the technology supply chain. The demand for high-bandwidth memory (RAM) is surging as companies invest heavily in AI infrastructure Eurogamer. This increased demand is not only affecting console manufacturers but also impacting other areas of the tech industry, with Valve delaying the Steam Machine and Microsoft considering another price increase for the Xbox Series X/S Eurogamer.

Neither Sony nor Nintendo have issued official comments regarding these reports.