AI Companies Spark Hardware Crisis: Hard Drives and Steam Decks Vanish from Shelves
In a startling development, AI companies are now monopolizing hard drives, following their earlier hoarding of RAM, leading to severe stock shortages. This trend is creating a ripple effect across the tech industry, particularly impacting gaming hardware manufacturers and consumers.
Gaming Industry Faces Manufacturing Delays and Price Hikes
The irony is palpable as gaming giants like Sony and Microsoft explore integrating advanced AI into their consoles, yet the same AI technology is making these devices harder to produce. Reports suggest that the PlayStation 6 could be delayed until 2029 due to these supply constraints. Current consoles are not immune either, with potential price increases looming as components become scarcer.
Western Digital, a leading hard drive manufacturer, has confirmed it is completely sold out for the remainder of 2026. During an earnings call, CEO Irving Tan stated, 'We're pretty much sold out for calendar 2026,' with the majority of stock reserved for top enterprise clients. This prioritization leaves console and PC manufacturers, along with everyday consumers, at a significant disadvantage.
Steam Deck and PC Parts Hit Hard by Memory Shortages
The shortages extend beyond consoles to affect devices like the Steam Deck. Valve has explicitly cited memory shortages as a reason for delaying its Steam Machine hardware and facing intermittent stock issues for the Steam Deck OLED model. In the UK, the base model with an LCD screen and 256 GB storage is being phased out, forcing consumers to pay at least £479.99 for higher-end versions once current stock depletes.
With 89% of Western Digital's revenue stemming from cloud-related businesses, and long-term agreements secured for 2027 and 2028, the focus remains firmly on enterprise needs. This shift is driving up prices for remaining stock, potentially pricing out regular buyers and complicating production plans for gaming companies worldwide.
