Steam Deck Shortage Confirmed Due to Memory Chips

• Steam Deck OLED uses high-capacity NAND flash storage (512GB and 1TB configurations) and DDR5 RAM, both components experiencing severe supply constraints • The discontinued LCD model utilized 256GB eMMC storage, which became economically unviable when NAND chip costs increased substantially[1] • Memory chip shortage stems from AI hyperscalers and data centers prioritizing procurement of DRAM and NAND flash for large-scale infrastructure buildouts • RAM prices are expected to continue rising throughout 2026, exacerbating production challenges for consumer devices[1] • The shortage affects multiple component categories: DRAM (system memory), NAND (storage), and SSDs, creating compounding supply pressures[3] • Valve's Steam Machine was originally planned for Q1 2026 launch but requires redesign due to component cost volatility and availability constraints[1][3]

The memory chip shortage represents a structural shift in semiconductor allocation toward AI infrastructure, with cascading effects across consumer electronics. Valve's decision to discontinue the affordable LCD model signals that manufacturers may abandon lower-margin products rather than absorb rising component costs. The expected delay of Sony's next-generation PlayStation until 2029 and Nintendo's consideration of price increases for Switch 2 indicate that the shortage will reshape the gaming hardware landscape through 2026 and beyond. Valve's Steam Machine pricing is expected to exceed $1,000, potentially repositioning it as a premium product rather than an entry-level gaming PC alternative. The shortage is projected to persist for years, suggesting sustained price pressure and inventory constraints across the gaming and consumer electronics sectors. Refurbished Steam Deck units, which were previously available at discounted prices ($279-$519), are also sold out, indicating that supply constraints affect the entire secondary market[2].