Xbox Next-Gen Console ‘Largest Technical Leap’ Could be Under Threat

Xbox’s next-gen console could be under threat following recent developments in the hardware space.

As we reported earlier this year, RAM availability has dried up in recent months thanks to high demand by AI development companies that want to use it to deck out their datacentres.

This has led to increased prices of RAM, with some instances bringing in more than a hundred percent cost increase.

Many PC gamers are reporting issues with upgrading their beastly machines, as the cost of RAM is simply too high for them to consider a new PC right now. And for newcomers, it’s made entry into the PC gaming space far too costly.

It seems this may also affect Microsoft’s Xbox production as well, with the cost of RAM essentially making Xbox consoles too expensive to make.

This has already been reported to possibly lead to another price hike for current-gen Xbox consoles (which would make it the third price increase since May), but it may also impact the release date and pricing of the upcoming next-gen Xbox.

Xbox family of consoles and devices from the Xbox Wire blog, Microsoft

Microsoft's Next-Gen Xbox Could Be Delayed Beyond 2027/2028

As reported by Insider Gaming, the next-generation of console gaming could be delayed thanks to these shortages.

The report states: “From what we understand, the situation has led console manufacturers to debate whether the next generation of consoles should be delayed from their intended 2027-2028 release window, with the hope that RAM manufacturers will be able to build out their infrastructure to produce more RAM, thereby allowing prices to drop.”

This is certainly going to be bad news for Microsoft, which teased last year that the next-gen Xbox console will be “the largest technical leap you've ever seen in a hardware generation”.

What’s more, the next Xbox console was already reported back in September to cost around “$800–$1200” due to the hardware specifications it’s targeting. Microsoft is allegedly aiming for more parity between PC and console gaming, hence the increased costs.

However, with new RAM cost increases throwing a spanner in the works, Microsoft will have to make a decision to either eat the costs, increase prices, or delay the next-gen until the market resolves itself.

Each decision comes with a big risk, and with no end in sight for when memory prices will come back down, it’s likely that Microsoft will probably want to decide what to do as we get closer to 2027/2028.