From casual hobby to luxury investment: memory costs hit PC gaming hard

June 28, 2026

Two years ago, the gaming landscape appeared poised for a renaissance, with affordable and accessible video games flourishing across open platforms. Devices like the Steam Deck demonstrated that PC gaming could be as user-friendly as a Nintendo Switch, while publishers began to embrace a more inclusive approach, opting to make their titles available across various ecosystems rather than confining them to a single platform. However, the situation has since taken a turn for the worse.

Unanticipated demand for AI data centers has disrupted manufacturing processes, leaving component-makers scrambling and driving prices to unprecedented heights. Microsoft recently disclosed that its costs for memory and storage have surged by 2.5 times, with expectations of further increases in the coming year. Consequently, the price of the Xbox Series S in the U.S. is set to rise by approximately 20% starting in August, hinting that similar adjustments may follow in other regions.

Apple’s Tim Cook echoed this sentiment, noting that the current market conditions are unlike anything he has witnessed before. Last week, Apple also announced a price hike of around 20% on its hardware, including MacBooks, iMacs, and iPads. These increases have hit particularly hard for smaller companies and individuals lacking the negotiating leverage of tech giants. While PC gaming generally offers a more cost-effective long-term solution due to a competitive ecosystem, the current price trends raise questions about the value of the latest offerings.

Handheld gaming PCs: power in your palms

Transitioning PC games from traditional setups to handheld devices was once a distant dream, but recent advancements have made it a reality for many gamers. Although the experience is not without its flaws, it has proven to be a game-changer for those with extensive digital libraries. However, the latest price tags present a significant challenge.

The new kid on the block: MSI Claw 8 EX AI+

MSI has launched its latest Claw handheld, which leverages Microsoft’s Xbox Mode on Windows 11 and Intel’s AI-driven upscaling and frame generation. My testing of this device revealed a remarkable leap in gaming performance for handhelds, albeit at a steep price of 49 in Australia. In high-demand games, I was able to optimize performance to near maximum resolution and frame rate (1080p, 144Hz) or extend battery life to six hours by dialing back settings. However, for most users with an established PC gaming library, justifying the 00 premium over alternatives like the ASUS ROG Xbox Ally X may prove difficult.

A sensible approach: Valve’s Steam Deck

Despite recent price increases, the Steam Deck remains a compelling option for many gamers. Its SteamOS effectively eliminates the need for Windows, managing drivers, settings, and updates seamlessly. Priced at 0, the original Deck offers good value, while the 00 Steam Deck OLED enhances the experience with a superior display and extended battery life.

For those committed to Windows—whether for Game Pass, alternative stores, or online games like Fortnite and Call of Duty—the ASUS ROG Ally Z1 or the ROG Xbox Ally, while slightly pricier and less powerful, may be suitable alternatives.

  • If you lack a PC games library, the Nintendo Switch 2 offers a 1080p, 120Hz screen and a dock for 4K TV play, available at a fraction of the cost of the MSI Claw 8 EX AI+. However, many major new releases do not make it to the Switch 2.
  • For indie or retro game enthusiasts, numerous handheld systems running Linux or Android are available from brands like Anbernic, Retroid, Ayaneo, and Miyoo. The challenge lies in legally accessing your favorite retro content.

Living room PCs: taking on the consoles

Connecting PCs to TVs has been feasible for years, but cumbersome operating systems and peripheral requirements have hindered the gaming experience. Recently, Microsoft has introduced much-needed changes, but Valve has made the most significant strides in this area.

The new kid on the block: Valve Steam Machine

Valve’s announcement of the Steam Machine last year promised to simplify the PC gaming experience in the living room, offering power and aesthetics comparable to current consoles at an expected entry-level price of around 00. However, the ongoing component crisis has altered these projections. The Steam Machine will now start at 09 in Australia for a device with a modest 512GB storage drive, climbing to 09 for a 2TB model. While these prices align with current market conditions, the real question remains whether Valve can meet the demand, as initial orders were taken via raffle, with a waitlist for future shipments.

A sensible approach: DIY or pre-built

Building a PC has never been more accessible, often proving to be more economical. A DIY build allows for customization in performance and software choices. Valve’s upcoming version of SteamOS will be available for anyone to download, enabling users to create their own Steam Machine. A recent build I spec’d, aiming to match the Steam Machine’s capabilities, came in at just over 00. Currently, expect to allocate 40% of your budget to a graphics card, 40% to RAM, processor, and motherboard, with the remaining 20% covering components less affected by price hikes. While DIY builds offer long warranties on individual parts, pre-built machines can sometimes be found at competitive prices, especially during promotions.

  • If access to PC games is not a priority, consoles from Sony and Microsoft often provide better per-unit component pricing, making them a more attractive option despite recent price increases. For the cost of the smallest Steam Machine, one could acquire both a PlayStation 5 and an Xbox Series X.
  • Cloud streaming options like Nvidia GeForce NOW and Xbox Game Pass are also becoming increasingly viable, with subscriptions starting at less than per month. This could represent significant savings over building a capable PC, assuming access prices remain stable.
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From casual hobby to luxury investment: memory costs hit PC gaming hard