AI Server Demand Shifts Semiconductor Supply, Sparking Optimization Race in Gaming Industry

By BAEK SEO HYUN Posted : May 11, 2026, 07:48 Updated : May 11, 2026, 07:48
[Graphic by Ajou Economics]

As investment in artificial intelligence (AI) servers expands, the semiconductor supply is increasingly focused on server applications, leading to rising prices for consoles and gaming PCs. The gaming industry is shifting its focus from competing on high specifications to ensuring stable performance across a variety of environments, in response to users' longer device replacement cycles.

According to industry sources, Nintendo will raise the prices of its console, the Nintendo Switch, starting May 25. The price of the Nintendo Switch OLED model will increase by 50,000 won, from 415,000 won to 465,000 won. The standard Nintendo Switch will rise from 360,000 won to 410,000 won, while the Nintendo Switch Lite will go up from 249,800 won to 279,800 won.

Earlier, Sony Interactive Entertainment Korea (SIEK) announced a price increase for the PlayStation 5 (PS5). The base model will see a nearly 27% increase, from 748,000 won to 948,000 won. The higher-end PS5 Pro, which features enhanced GPU performance, AI-based upscaling, and high-resolution graphics processing, will rise from 1,118,000 won to 1,298,000 won, approximately a 16% increase.

Microsoft is also gradually raising prices for its Xbox Series X and S consoles. The Series X has increased by about $200 in some countries compared to last year, while the more affordable Series S has seen a price rise of over 30%. In South Korea, the price has reached the upper 300,000 won range.

This trend is rooted in the semiconductor supply structure, which has shifted to prioritize AI servers. As the era of 'agentic AI'—which can perform tasks and support decision-making—gains momentum, major global tech companies are ramping up investments in AI data centers. Consequently, leading semiconductor firms like NVIDIA, AMD, and Intel are increasing their production of server chips, while consumer supply is becoming more limited.

Industry experts believe that this situation is unlikely to resolve quickly, suggesting that the burden of gaming hardware prices for consumers may persist over the long term. They particularly note the changing device replacement cycles. Traditionally, console replacement cycles were estimated at around five to six years, but with recent price hikes, more users may opt to keep their existing hardware for longer periods.

As a result, game developers are finding it increasingly important to provide stable performance across a range of specifications rather than focusing solely on high-end PC environments. Recent major releases have faced user complaints regarding optimization issues, frame drops, and bugs shortly after launch, highlighting that performance stability is becoming a key evaluation factor alongside gameplay quality.

For instance, Pearl Abyss is continuing its optimization efforts for the game "Crimson Desert," released in March, ensuring that it does not rely solely on the latest high-end hardware. The company is actively working on stabilization across different platforms, including consoles and PCs, while refining graphics options and improving frame rates.

An industry insider stated, "In the past, the competition was centered around graphic quality, but moving forward, how reliably games run on limited hardware environments is likely to become a core competitive advantage. The restructuring of the semiconductor market around AI servers is influencing game development directions as well."



* This article has been translated by AI.

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