Gaming hardware prices in Germany have climbed sharply in 2026, driven by persistent chip shortages and elevated demand from artificial intelligence data centers, according to industry data released ahead of the Gamescom event in Cologne.
Spending on gaming hardware in the first half of 2026 declined 8% year-over-year to €1.3 billion, while total gaming revenue in the country fell 3% to about €4.2 billion, the German games industry association Game reported. Revenue from video game sales dropped 1% to €2.3 billion, while online gaming services, including cloud platforms, rose 3% to €600 million.
The surge in hardware costs has been linked to the so-called "RAMageddon" phenomenon, where memory chip prices have surged due to intense demand from AI infrastructure projects. Felix Falk, managing director of Game, noted that elevated prices have deterred purchases, particularly among consumers who recently upgraded to new consoles such as the Nintendo Switch 2.
The Nintendo Switch 2, launched in spring 2025, contributed to a temporary boost in sales during its launch period, creating a comparative base effect that has weighed on current figures. Falk added that the AI-driven demand for memory chips is prolonging the shortage, with no clear timeline for relief. "When the RAMageddon will end, I don’t know either. It depends heavily on AI development," he said.
Gamescom, the world’s largest gaming event organized by Koelnmesse, is set to open next week in Cologne with more than 1,600 exhibitors, surpassing last year’s record of 1,568. Foreign exhibitors will account for roughly two-thirds of participants, while the exhibition floor space remains unchanged at 233,000 square meters. Gerald Böse, head of Koelnmesse, described Gamescom 2026 as a showcase for growth, international relevance, and community engagement.
Visitor numbers for the event reached 357,000 in 2025, below the all-time peak of 373,000 recorded in 2019. Organizers have shifted focus away from matching prior attendance records to prioritize digital engagement and innovation, aligning with the event’s guiding theme: "Games machen Lust auf Zukunft" (Games make you want the future).
Industry executives also highlighted the role of innovation and entrepreneurship in shaping the sector’s future, with Falk emphasizing the importance of fostering new technologies and business ventures within gaming.
