Samsung has warned that memory shortages will persist through 2028, meaning video game console prices will continue to rise until at least 2029. The company reported a 130% surge in quarterly revenue, driven by booming demand for AI service infrastructure.
Samsung's Warning
During an earnings call, Samsung's executive vice president of memory, Jaejune Kim, said: 'We believe it will be unlikely to see any significant increase in incremental supply through 2028.' He added that unmet demand from this year is likely to carry over, contributing to tighter supply conditions.
Kim stated: 'The supply constraints are expected to become even more severe in 2027 than 2026, reinforcing our view that the supply shortage will persist through 2028.'
Impact on Hardware Prices
The shortages have already pushed up prices. The Xbox Series S, once £299.99, now costs £429.99. Upcoming consoles like Project Helix and the PlayStation 6 are rumoured to exceed £1,000 at launch.
Even non-gamers are affected, as the shortages impact mobile phones, home PCs, and laptops. Some industry predictions suggest the crisis could last at least a decade, though Samsung's outlook is more optimistic.
Samsung's Financial Gains
Samsung generated 171.5 trillion South Korean won (about £120 billion) in revenue for Q2 of its fiscal year (April to June 2026), a 130% increase year-on-year. The company prioritises customers who can guarantee committed future demand for AI infrastructure, which aligns with its long-term risk hedging.
