Console prices likely to rise again as memory prices expected to surge twice in the second half of 2026, warns Jefferies Equity Research

The tech industry is currently going through a major memory crisis, and consumers are already feeling its effects. Over the past few months, several companies have increased the prices of their products, including gaming consoles. Sony, Microsoft, and Nintendo have all raised console prices in different regions, and unfortunately, it looks like more price hikes could be on the way.

According to a new report from Jefferies Equity Research, memory prices are expected to climb sharply during the second half of 2026. The report claims that memory pricing could increase by 40% to 50% in the third quarter of 2026 compared to the current quarter. That won't be the end of it either, as another 30% to 40% increase is expected during the fourth quarter. 

The report also paints a worrying picture for 2027. Memory prices are projected to remain high, with year-over-year increases of around 40% to 45%. Meaningful relief isn't expected until 2028, when new manufacturing capacity finally starts entering the market. 

One of the biggest reasons behind the shortage is the growing demand from AI companies and cloud service providers. Major tech firms are signing long-term agreements with memory manufacturers and securing huge portions of future production. According to Jefferies, around 50% of the memory supply is already tied up in these deals, and that number could rise to as much as 70%. 

For gamers, this could mean more bad news in the coming months. While many people are already worried about the pricing of future systems like the PlayStation 6 and Microsoft's Project Helix console, it seems that even existing hardware may not be safe from further increases. If memory prices continue to rise at the pace suggested by Jefferies, console makers may have little choice but to pass some of those extra costs on to consumers once again. Lenovo's Executive Director, Martin Hiegl, also recently said that DRAM and NAND prices are unlikely to return to their early 2025 levels, with higher prices potentially becoming the new normal through 2030 and beyond.