Sony $SONY ( ▼ 1.4% ) is reportedly considering pushing the release of its next PlayStation console to 2028 or 2029, breaking from its traditional six to seven year upgrade cycle. The delay would be driven largely by soaring demand for memory chips from AI data centers, which is tightening supply and pushing up component costs across the tech industry.
The situation has become severe enough that some analysts are calling it “RAMmageddon,” reflecting how AI workloads are consuming enormous amounts of high performance memory.
AI boom squeezes gaming hardware
Memory shortages are rippling through the entire gaming ecosystem. Nintendo $NTDOY may raise the price of its upcoming Switch successor, while Nvidia $NVDA is reportedly skipping a new gaming GPU launch this year. Valve has delayed its planned console and is struggling to keep its Steam Deck handheld in stock due to supply constraints.
These disruptions highlight how AI infrastructure spending is crowding out consumer electronics manufacturing capacity. Companies building data centers are willing to pay premium prices for advanced memory, leaving fewer components available for gaming devices.
Gaming sector feels pressure from multiple fronts
Hardware challenges come at a time when gaming stocks are already under strain from fears of AI disruption to the industry itself. The launch of Google $GOOGL ( ▲ 0.43% ) ’s Project Genie, which can generate interactive worlds using AI, has triggered selloffs across several gaming companies.
If the PlayStation timeline slips, it would extend the current console generation far longer than usual, potentially reshaping release schedules for major game titles and hardware partners.
For consumers, the impact could mean higher prices and fewer upgrades. For investors, it underscores a broader reality of the AI era: even industries far removed from artificial intelligence are feeling the effects of its insatiable demand for computing resources.