Valve’s original Steam Deck LCD model, priced at $399, is no longer available for purchase this month. This change means the cheapest new Steam Deck now costs $549, driven by a global shortage of computer chips. The shortage stems from high demand for parts used in AI technology, making affordable gaming devices harder to produce. Budget-conscious gamers now face higher prices as component costs soar and sales slow.
New Price Reality
Valve launched the Steam Deck LCD in February 2022 as an affordable way to play high-end games on the go. It sold around 4 million units over three years, proving popular with gamers. Now, a note on Valve’s online store confirms the end of the 256GB LCD version. Buyers must choose the 512GB OLED model at $549 or the 1TB OLED at $649. This marks a $150 jump from the original base price.
Valve offered no official reason for the switch. However, the timing aligns with wider economic challenges, including inflation. These pressures have raised production costs across the tech industry. Gamers seeking a portable powerhouse must now pay more for the upgraded OLED screen and better performance.
Semiconductor Shortage Drives Costs Up
A shortage of memory chips lies at the heart of this shift. Demand from AI data centers has spiked, pulling supply away from consumer gadgets. Spot prices for DRAM chips jumped from $6.84 to $27.20 per 16-gigabit unit between September and December 2025, a 300% increase in just three months. Companies like Samsung, SK Hynix, and Micron control 70% of global DRAM production. They have redirected factories to make high-bandwidth memory for AI servers.
DDR5 memory modules show the strain clearly. A 16GB unit rose 91% from $260 in October to $498 in November 2025. NAND flash prices climbed 246% since the start of the year, with most of that surge in the last two months. Experts warn these shortages could last until 2027. New factories take years to build, leaving gaming hardware vulnerable.
Gaming Market Feels the Pinch
U.S. sales of gaming hardware dropped to 1.6 million units in November 2025, the lowest November figure since 1995, according to Circana research. Spending on consoles fell 27% year-over-year to $695 million—the weakest November since 2005. Average console prices rose 11% to $439. Young gamers aged 18-24, a key group for budget handhelds, cut spending by nearly 25% in 2024. Factors include returning student loans, tough job markets, and rising credit issues.
Valve’s Black Friday 2025 sale cut the LCD model’s price to $319, a 20% discount. That deal now looks like a final push to clear inventory before discontinuation. Softer demand has hit the entire sector, forcing companies to rethink pricing strategies.
Competition and Industry Changes
Nintendo’s Switch 2, priced at $449.99, steps in as a more affordable high-end handheld. It sold 10 million units in its first four months after a June 2025 launch. Last November, it ranked second in U.S. hardware sales, trailing only the PlayStation 5. Higher-end rivals like ASUS’s ROG Ally X, priced from $799 to $1,000 since October 2025, also beat expectations. ASUS projects $128 million to $160 million in quarterly revenue, with top models in short supply.
The market now divides sharply. Devices over $450 hold steady demand, while options under $400 fade away. Price hikes spread across the board. Sony raised PlayStation 5 prices to $549-$749 in August 2025. Microsoft increased Xbox Series prices in September. Framework noted memory costs doubled to $10 per gigabyte from $5-6 six months earlier.
Micron ended its 29-year Crucial consumer brand on December 3, 2025, to focus on AI clients. Kingston predicts prices will keep rising into 2026. Gamers weigh options like the $549 Steam Deck OLED, $449.99 Switch 2, free-to-play mobile games (which make up 49% of the $92 billion gaming revenue), or cloud services such as Xbox Game Pass Ultimate at $15-$30 monthly.
Valve plans an early 2026 lineup with a $599-$700 Steam Machine console, new controller, and wireless VR headset. None target the budget handheld space, pointing to a shift toward premium products. As shortages persist, gaming splits between costly hardware for those who can pay and subscription services that lower barriers. Valve’s LCD exit leans premium, but by 2027, services may become the main way most people access games.
Sources
Micron Announces Exit Crucial Consumer Business. Micron Technology, December 3, 2025
US Video Game Market Sales November 2025. Circana, November 2025
Steam Deck Store Page Disclaimer On LCD Availability. Valve Steam Store, December 2025
RAM Pricing Crisis And Market Warnings. Tom’s Hardware, 2025