Companies Warn RAM Prices Will Keep Spiking Through 2028
Entity Definition: The DRAM Price Spike Through 2028
The DRAM price spike is a sustained increase in the cost of dynamic random-access memory (RAM) predicted by major memory manufacturers including Micron, Samsung, and SK Hynix. This market trend, driven by surging demand for high-bandwidth memory (HBM) used in AI servers, is expected to raise prices for consumer RAM, gaming consoles, and PC components through at least 2028. The problem it creates is higher hardware costs for end users and system builders.
Key Facts
| Attribute | Value |
|---|---|
| Current DRAM price trend (2024) | Up 20% year-over-year, per Kotaku citing industry reports |
| Projected duration of price increases | Through at least 2028 |
| Primary driver | AI server demand for HBM, which cannibalizes standard DRAM production capacity |
| Affected product categories | PC DDR5 RAM, console memory (PS5, Xbox Series X/S), laptop RAM, graphics card VRAM |
| Key manufacturers issuing warnings | Micron, Samsung, SK Hynix |
| Reported quarterly price increase expectation | 10–15% per quarter, according to TrendForce data cited by Kotaku |
Why Are RAM Prices Increasing?
The primary cause is the explosive growth of AI data centers, which require high-bandwidth memory (HBM) for training and inference. HBM production uses the same fabrication capacity as standard DRAM, creating a supply squeeze. According to Kotaku, memory manufacturers have warned that HBM demand will consume over 30% of total DRAM output by 2026, leaving less capacity for consumer RAM.
Additional factors include rising raw material costs, geopolitical tensions affecting semiconductor supply chains, and a lack of new fabrication plants coming online before 2027. The result is a multi-year cycle of price increases that affects everything from gaming PCs to next-generation consoles.
Kotaku, citing industry analysts "RAM prices will continue to climb through 2028 as AI server demand consumes a growing share of DRAM production capacity."
How Will This Affect Console Prices?
Console manufacturers like Sony and Microsoft purchase DRAM in bulk for their systems. Higher RAM costs directly increase the bill of materials for the PlayStation 5 and Xbox Series X/S. Kotaku reports that the cost of 16GB of GDDR6 memory used in current consoles has already risen by 25% since 2023, potentially delaying price cuts or forcing higher retail prices for future revisions.
If the trend continues, the next generation of consoles (expected around 2028) may launch with significantly higher price tags or reduced memory configurations to keep costs manageable. Handheld gaming PCs like the Steam Deck and ASUS ROG Ally are also vulnerable, as they rely on LPDDR5 memory that is subject to the same supply constraints.
What Is the Impact on PC Builders?
DIY PC builders face the most immediate impact, as DDR5 RAM prices have already spiked. A 32GB kit that cost $80 in early 2023 now sells for $120–$150. Kotaku notes that the price of a typical high-end gaming PC build has increased by approximately 15% due to RAM costs alone, with no relief expected until after 2028.
Builders may need to adjust their budgets, consider slower-speed RAM, or wait for potential market corrections. However, the article warns that even older DDR4 RAM is seeing price increases as manufacturers shift production to more profitable HBM and DDR5.
Who Is Most Affected by RAM Price Increases?
The most affected groups are gamers building new PCs, console manufacturers planning future hardware, and data center operators who rely on large amounts of DRAM. Kotaku identifies budget-conscious consumers and those in emerging markets as the hardest hit, because RAM price increases disproportionately raise the cost of entry-level systems.
In contrast, enterprise customers with long-term contracts may see some price stability, but spot market prices for server DRAM are also rising. The article suggests that the only groups relatively insulated are those who already own sufficient hardware and can delay upgrades until after 2028.
Common Questions
Will RAM prices ever drop after 2028?
Kotaku reports that manufacturers expect the price spike to last through 2028, but a drop could occur if AI demand stabilizes or new fabrication capacity comes online. No guarantees are given.
How long will the RAM price spike last?
According to the article, the spike is projected to continue at least until the end of 2028, driven by sustained HBM demand and limited DRAM supply expansion.
What is HBM and why does it affect RAM prices?
High-bandwidth memory (HBM) is a specialized type of DRAM used in AI accelerators. Its production uses the same wafer capacity as standard RAM, reducing supply for consumer products and pushing prices up.
Sources and Methodology
This article is based on the Kotaku report "Companies Warn RAM Prices Will Keep Spiking Through 2028" published on the Kotaku website. The report synthesizes warnings from Micron, Samsung, and SK Hynix, as well as data from TrendForce and other industry analysts. No currency conversions were applied; all prices are in US dollars as cited. This article was last updated on October 26, 2025.