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Or is it just one of Adam's balls in my throat?
Gamers Are Calling for a “RAM Boycott” to Force Prices Down, But Here’s the Hard Truth: It Won’t Work
Many people claim that a 'RAM boycott' would eventually ease prices and help PC gamers combat the situation, but here's why they are wrong.
wccftech.com
Many people claim that a 'RAM boycott' would eventually ease prices and help PC gamers combat the situation, but here's why they are wrong.
While many of our regular readers are aware of the primary reasons behind consumer RAM prices 'going nuts', gamers out there are still uncertain about the situation, mainly since the increase in retail prices of DDR5 and DDR4 memory modules drives their sentiments. However, it's essential to understand the intricacies of the supply chain, as this will help navigate the ongoing shortages.
There's an extensive Reddit post around a user calling out for a "RAM boycott", saying that it would 'save everyone a fortune.' However, based on the current state of the memory industry, a boycott would have little impact; instead, it would deprive PC gamers of consumer memory that they could've bought at relatively lower prices.
Why Are Memory Prices Rising So Suddenly? A Deep-Dive Into Reasons Apart From the 'AI Boom'
Many users are under the impression that the demand from the AI sector alone has led to an increase in memory prices, but there is an important context to add here. Within the COVID era, the PC supply chain navigated itself into a complex scenario, as demand for RAM, particularly from the consumer sector, plummeted. This is why suppliers were eventually forced to reduce production on their lines and instead allocate resources to other areas. We reported on manufacturers like Samsung, which reported 'slowed-down' DRAM demand a few years ago, a huge concern at the time.Even when the newer DDR5 technology emerged, the demand from gamers wasn't as high as a generational change would typically bring, mainly because the longevity of platforms like the AM4 eventually gave gamers the leverage to stick with existing systems for longer. As a result, DRAM manufacturers eventually had to suffer, and their production capacity was significantly reduced to maintain profitability. When you factor in this situation, the ongoing memory shortage becomes more justified, as production lines weren't ready to accept the unprecedented demand coming their way.
Now, the narrative that a 'boycott won't work' is backed by the reasons that a considerable portion of the DRAM demand is actually driven by the AI supply chain, mainly CSPs and manufacturers like NVIDIA and AMD. While we don't have an exact estimate on how DRAM demand is distributed among consumers and the AI industry, it wouldn't be wrong to say that the AI supply chain has consumed 'everything'. Even if gamers stopped buying PC memory, manufacturers like Samsung, SK hynix, and Micron would have little impact, since most of their purchases come from the AI sector.
The AI frenzy has created a need for DRAM products, such as DDR, GDDR, RDIMM, HBM, LPDDR, and several other types, to the point where almost every memory variant is under a supply constraint. HBM is an integral part of modern-day AI chips, which is why most of the DRAM capacity is being allocated to produce the memory type. And since manufacturers control who they want to sell their DRAM production to, they certainly won't favour gamers, as the sector doesn't bring them profit margins similar to those of CSPs and AI giants.
Okay, a Boycott Won't Work, But What Should Gamers Do to Combat the RAM Shortage?
This is probably the most essential part of this coverage, which discusses how PC gamers should react to the ongoing shortages. The first and foremost strategy to adopt is not to succumb to 'FOMO' when purchasing RAM, especially if you are currently in the process of upgrading your existing RAM capacity. Gamers currently utilizing 8 GB or 16 GB memory modules should stick with them for a few months until we navigate our way out of these shortages. Jumping on RAM upgrades at this point would mean 'splurging extra' on upgrades that could wait.If you are in the markets looking for RAM modules for an entire system, well, the best option for you is to capitalize on the ongoing deals season, as while they still offer RAM modules at inflated prices, it's your best bet in the short term, especially since the prices are estimated to be elevated for a few months. While this might sound unusual, purchasing a pre-built PC might be the best option right now if you are looking for a complete system, as they are currently retailing for prices that haven't factored in memory shortages. This means you can snag units at a great price, such as a recent deal we discussed.
It won't be wrong to say that upcoming consumer devices are expected to become expensive if memory supply constraints remain, and at the same time, these shortages are anticipated to last up until 2027, hence it's important to be aware of the supply chain dynamics, to ensure that you take the best decision.
