The console industry continues to reel from the RAMpocalypse, and Xbox is certainly feeling it.
Circana analysis suggested a few weeks ago that Xbox hardware sales are at their lowest level ever, with PlayStation also suffering their lowest hardware sell-through situation since 2013. Without a doubt, the so-called RAMpocalypse is to blame, with companies like Google, Anthropic, OpenAI, and indeed, Microsoft itself buying up all the RAM for their AI-tinted ambitions.
That leaves little left over for "niche" consumer electronics scenarios, such as video game consoles ... ballooning Xbox, PlayStation, and Nintendo console prices to their highest levels ever in some cases.
The timing couldn't be worse really. Grand Theft Auto 6 launches in a month from now, and its mainstream appeal would've driven huge amounts of users to upgrade older consoles or perhaps enter the hobby for the first time. With global stock levels battered and prices otherwise impossible for most to consider, Microsoft is turning towards a novel approach to try to increase stock availability.
Spotted by users on X (cheers H!) and covered first by PowerUP, Microsoft is actually sending out emails to users who have dormant Xbox Series X|S hardware, recommending that they trade them in, offering links and advice on how to do so. The email specifically cites Best Buy, which has a trade-in system here you can explore for Xbox hardware.
It seems the emails are going out specifically to users who have hardware that they aren't actively using, including users who own multiple consoles potentially.
Indeed, the economics on console hardware is so bad right now that any user sitting on a dormant PS5, Xbox Series X|S, or Nintendo Switch potentially represents a big net loss for the big three. The margins are so bad, and the stock availability so low, that trying to convince users to move their consoles to others who might actually become more active players (and spenders) is more than preferable.
Ahead of Grand Theft Auto 6's launch, Microsoft and its competitors are working around the clock to source components for their hardware provisions. Call of Duty has also stopped shipping on past-gen consoles, and it seems fairly likely given how popular Modern Warfare 4 has been so far that many users would want to upgrade for that as well ... if indeed there was stock available.
Stock availability of new (and very pricy) Xbox Series X|S hardware has generally remains stable in Microsoft core markets like the U.S., UK, Canada, Australia, and so on. In Asia, mainland Europe, the Middle East, and South America Xbox console stock has been almost non-existent. Tariffs, the RAMpocalypse, and general global economic instability has left the console market in a precarious state ... despite an unprecedented density of high-quality games.
Some analysts expect the "RAMpocalypse" to last through to 2028, maybe even 2029, with consumer electronics expected to take a battering between now and then. Smartphone, PC, laptop, and of course, game console shipments are all down as a direct result of the AI build out. It doesn't look like things will change any time soon.
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