Lenovo has warned that the current level of RAM prices may become the “new normal,” with DRAM and NAND costs unlikely to return to 2025 lows in the near term. The warning echoes recent statements from other major players in the PC parts market and the broader consumer electronics sector.
On June 25, Microsoft announced another Xbox Series X/S price increase, its third since May 2025. Following the latest adjustment, the entry-level Series S will cost $499.99, or as much as its Series X counterpart did at launch in 2020. Microsoft is not alone in raising consumer electronics prices, as Sony has also marked up the PS5 twice since launch, while Nintendo plans to raise Switch 2 prices in the U.S., Canada, and Europe in September 2026. Rising component costs, particularly for memory and storage, have been cited as a key factor behind the broader wave of price hikes across all consumer electronics and other hardware.
Lenovo Talks Dire State of RAM Prices
As reported by German outlet ComputerBase, Lenovo told attendees at Hamburg-based ISC 2026 that DRAM and NAND prices will likely never return to the levels seen around mid-2025, even after major new manufacturing capacity begins coming online in 2028. A company official reportedly used “never” as an exaggeration during the presentation, a remark that drew laughter from the audience. Nonetheless, the broader forecast was clear: the worst of the ongoing global RAM shortage may be over by 2030, but the market may settle into a higher pricing baseline from that point onward.
The current situation has been brewing for a while, with RAM prices already spiraling out of control in late 2025. Much of the demand pressure appears to stem from hyperscaler data center expansion fueled by heavy capital spending on AI infrastructure. Because major cloud and AI companies can place large orders years in advance, they consistently receive priority over other buyers. That gives memory suppliers more pricing power as long as demand continues to exceed supply, as remains the case while AI infrastructure spending accelerates. According to Lenovo, Microsoft, and several other major players in the industry, DRAM demand is likely to continue pressuring global supply until around 2030.
Why Xbox Is More Sensitive to DRAM Price Hikes than PlayStation and Nintendo
Consumer electronics manufacturers, including console makers, typically buy components in batches. That approach allows them to absorb higher input costs for a time, but only until existing inventory and supply agreements run their course. Microsoft has raised Xbox console prices more often than Sony has raised PS5 prices, ostensibly because Xbox hardware is produced in smaller volumes and therefore gives Microsoft less leverage in component negotiations. Valve recently pointed to a similar issue, saying it had little room to negotiate RAM pricing for the Steam Machine, with all suppliers giving it take-it-or-leave-it quotes.
