MSI Raises Gaming Hardware Prices 15-30% on Memory Costs
MSI, a leading manufacturer of gaming hardware, announced plans to raise prices on its graphics cards, motherboards, and gaming laptops by 15 to 30 percent, citing surging memory costs amid a global shortage. The decision, revealed during a recent investor briefing in Taiwan, comes as the company navigates what its general manager described as its most challenging year since its founding in 1986.
Huang Jinqing, MSI's general manager, told investors that the price adjustments are necessary to offset the dramatic rise in component expenses, particularly for DRAM modules essential to graphics cards and other PC components. A 16GB DDR5 memory module, which cost around $40 a year ago, now fetches $170 to $200 in spot market transactions, according to Huang. MSI currently holds only one to two months of secure memory inventory, forcing the company to pursue long-term supply contracts with manufacturers like Samsung and SK Hynix to stabilize costs. These suppliers have prioritized data center and AI applications, which offer higher margins, leaving consumer hardware producers like MSI scrambling for allocation.
The broader PC market faces a projected contraction of 10 to 20 percent in...