Nah it’s the GPU market. Cryptocurrency briefly exploded and now AI is sucking up all of the GPU manufacturing capacity. Back in 2019 I got my RX580 for $175. The AMD 9070 that released this year is a tier down from that and had an MSRP of $550, but an actual price more like $650. The sweet spot of value PC building has shifted from $750 to $1,500 in just a few years. Some of that is just general inflation that affects all parts, but roughly half of that increase is just from the GPU.

It’s impacting consoles too. Consoles uses to get cheaper over time, with both price drops to existing models and new, cheaper models being released (Sony’s Slim models, things like the Wii Family Edition and Wii Mini, the DSLite, etc). Looking at this generation… The original PS5 with a disc drive debuted at $500 in 2020. The “Slim” version also debuted at $500, and just got a price increase to $550. They released a PS5 Pro at $700, and just increased it to $750.

Nintendo is doing it too. The Switch was $300 for its entire life, and now that the Switch 2 is out consumers would typically expect a price cut to move the existing stock. Instead, Nintendo raised the price to $330. The OLED model went from $350 to $400, and the Lite went from $200 to $230.

And of course Microsoft is in on it too. It’s more complicated to write up since they have different storage variants of the Series S|X, but for example a Series S 512GB was $300 at launch (For some reason I remember seeing them for $250, but maybe that was a Black Friday sale or something). Now it’s $400!