Handheld gaming consoles get pricier as AI memory shortages squeeze supply

Price increases across the board

According to Mashable, handheld gaming consoles have become significantly more expensive in 2026 due to shortages in memory components, a side effect of the AI industry’s ramped-up demand for high-capacity chips. Nintendo, Microsoft, and Sony have all raised prices on their gaming consoles in the past year, reflecting broader trends in consumer hardware.

The Lenovo Legion Go 2’s price has nearly doubled, jumping from $1,099 at launch to $1,999. Even with discounts, the Lenovo Legion Go S with SteamOS now costs $999, up from $749.99. The Steam Deck OLED has also seen a 98% price increase, with the 1TB version now priced at $999.

Not all devices have followed this trend. The ROG Xbox Ally X has maintained its original price of $999, while the MSI Claw 8 is now the most expensive option at $1,799.99.

Nintendo Switch 2 remains the affordable outlier

Despite price increases, the Nintendo Switch 2 is the most affordable handheld console in 2026, priced at less than half the cost of its competitors. It supports backward compatibility with existing Switch games, some of which receive performance upgrades. The device features a 7.9-inch LCD panel with HDR support, a 120Hz refresh rate, and 1080p resolution.

Accessories for the Switch 2 have also seen price changes: the Pro Controller costs $84.99, while new Joy-Con controllers, which now use magnets instead of a sliding mechanism, are priced at $94.99. First-party games range from $69.99 to $79.99.

The Switch 2 includes 256GB of internal storage but is exclusively compatible with microSD Express cards. Battery life ranges from two to six hours on a single charge.

Alternatives and trade-offs

The Steam Deck OLED, despite its price increase, remains a strong option for PC gamers who prioritize Steam’s library. Its 7.4-inch OLED display, 90Hz refresh rate, and 800p resolution make it a versatile choice, though its desktop mode is described as more of a novelty than a full computing replacement.

For Xbox and cloud gamers, the ROG Xbox Ally X and MSI Claw 8 offer Windows 11 compatibility. The ROG Xbox Ally X stands out for its stable pricing and features like a fingerprint reader, while the MSI Claw 8’s $1,799.99 price point and setup complexity may limit its appeal.

The Nintendo Switch Lite, priced at $200, provides a compact and budget-friendly alternative. However, its 32GB of onboard storage and shorter battery life (four to five hours) make it a less flexible option for heavy gamers.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

The price increases in handheld gaming consoles highlight a broader tension in the tech industry: the AI sector’s insatiable demand for memory components is trickling down to consumer hardware. For founders and operators in gaming or hardware, this trend signals potential supply chain challenges and cost pressures. It also underscores the importance of pricing strategy—while Nintendo’s ability to keep the Switch 2 relatively affordable could reinforce its market position, competitors may struggle to justify higher costs unless they offer compelling differentiators like backward compatibility or cloud gaming integration.

Related on Lazyfounder

• Microsoft
• Sony
• More technology news