Console Market Plummets to 1980s Crisis Levels as AI Gobbles Up Crucial Components

The US video game hardware market is in its most precarious state since the early 1980s, a period that presaged the industry’s catastrophic collapse, according to analyst Mat Piscatella. This alarming downturn is driven by soaring console prices, with the PlayStation 5 and Xbox Series X/S becoming prohibitively expensive in many regions. The primary culprit? An insatiable demand for memory components from burgeoning AI data centers, which are diverting essential resources away from consumer electronics. This scarcity directly inflates the cost of next-generation consoles, pushing them further out of reach for average consumers and creating a market environment eerily reminiscent of the conditions that led to the great video game crash.

Adapted from: Eurogamer.net News Feed

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