[hibikir]

Someone like Nintendo or Sony is making a whole lot more devices, so they probably have not just longer term contracts, but the scale to negotiate prices down. Valve might not even contract a line making it all the time: Theri total sales are in the low single digit millions, while Nintendo selst 15+ million a year, and expect 5+ years of a console's lifetime.

So it's unsurprising that when prices of components go up, a company that has a much lower scale ends up facing worse production problems. Just look at how the price of consumer RAM has basically tripled in the last year. And the Steam deck has to pay for the ram and the internal SSD, and those are also going way up. It's not a cost of goods situation anymore: Prices are now basically set at auction.

It will continue until AI demand for memory goes down, or Micron and such manage to get a whole lot more manufacturing capacity online. And just like during Covid, anyone raising capacity is taking big risks on how long that capacity will need to remain online. See the companies that upped production in 2020 and were wrecked in 2022 because demand collapsed.