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"RAMageddon": Chip Shortage Drives Up Gaming Hardware Prices in Germany
🇩🇪 Germany /Economy & Trade

"RAMageddon": Chip Shortage Drives Up Gaming Hardware Prices in Germany

From Die Zeit · () German

Translated from German, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • German gaming hardware spending fell 8% in the first half of 2026 due to chip shortages and rising prices, impacting consumer purchases.
  • The industry dubs the situation "RAMageddon," linking high memory prices to increased demand from AI data centers.
  • Despite hardware challenges, Gamescom, the world's largest gaming trade fair, expects record exhibitor numbers.

The German gaming market is experiencing a downturn in hardware spending, with a significant 8% drop in the first half of 2026 compared to the previous year, totaling 1.3 billion euros. Felix Falk, managing director of the industry association Game, attributes this decline to a scarcity of computer chips and escalating prices. This situation is exacerbated by the high demand for chips from artificial intelligence data centers, leading the industry to coin the term "RAMageddon" – a portmanteau of Random Access Memory and Armageddon.

With increased prices for hardware, there is also a corresponding decrease in sales revenue.

— Felix FalkFelix Falk, managing director of the industry association Game, explaining the impact of rising hardware prices on sales.

Falk highlighted that the surge in memory prices disproportionately affects gaming PCs. The resolution of "RAMageddon" remains uncertain and is heavily dependent on the trajectory of AI development. The rapid expansion of AI data centers is straining global chip production capacity, making it difficult for the industry to keep pace with demand.

While chip shortages and price hikes are major factors, normal market cycles also contribute to the hardware sales dip. The launch of the Nintendo Switch 2 in spring 2026 initially boosted hardware revenue as consumers invested in the new console. However, this led to a subsequent slowdown as those who recently purchased new hardware are now adopting a wait-and-see approach.

I would also like to know when the RAMageddon will end: It depends heavily on the development of AI.

— Felix FalkFelix Falk, managing director of the industry association Game, discussing the uncertainty surrounding the chip shortage.

Overall gaming revenue in Germany decreased by 3% to approximately 4.2 billion euros in the first half of the year. Within this, the sale of games saw a minor 1% decline to 2.3 billion euros, while online gaming services, including cloud offerings, experienced a 3% increase, reaching 0.6 billion euros.

Those who recently equipped themselves with a new console are now saying, 'I'll wait and see'.

— Felix FalkFelix Falk, managing director of the industry association Game, explaining consumer behavior after the Nintendo Switch 2 launch.

Amidst these market challenges, the upcoming Gamescom, the world's largest trade fair for computer and video games, is poised for growth. Scheduled to take place in Cologne, the event anticipates over 1600 exhibitors, surpassing the previous record of 1,568 in 2025. Approximately two-thirds of the exhibitors are international. Gerald Böse, CEO of Koelnmesse, which co-organizes the event with Game, stated that Gamescom 2026 signifies growth, international relevance, and a strong community.

Gamescom 2026 stands for growth, international relevance, and a strong community.

— Gerald BöseGerald Böse, CEO of Koelnmesse, describing the outlook for the upcoming Gamescom trade fair.
DistantNews Editorial

Originally published by Die Zeit in German. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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