Valve Engineer Warns of Worsening Component Prices, Potential Hardware Hikes

A Valve hardware engineer suggests current supply chain issues are still escalating, potentially leading to increased prices for consumer electronics, including gaming consoles.

Jul 20, 2026
Industry & Business
Valve Engineer Warns of Worsening Component Prices, Potential Hardware Hikes

Component prices continue to rise, with a Valve engineer indicating that the current situation is "still getting worse." Yazan Aldehayyat, a Valve engineer involved with hardware, told Bloomberg that the prices seen on retail shelves lag behind bulk supply pricing by three to six months. This ongoing memory crisis suggests that consumers may face further price increases for electronic goods.

Aldehayyat's comments align with recent price adjustments by major console manufacturers. Microsoft announced significant price increases for its Xbox Series X and S consoles, effective August 1, attributing the hikes to rising component costs. The company also anticipates component prices could double again by autumn 2027, potentially signaling future price hikes for its gaming hardware. This is not an isolated event, as Sony has also increased PlayStation 5 prices multiple times, and Nintendo has announced a price increase for the Switch 2. The initial cost of Valve's own Steam Machine, which launched at a minimum of £879 ($1,049), was already higher than initially intended, a situation exacerbated by the current market conditions.

While the situation appears bleak, the Valve engineer expressed hope that pricing will eventually stabilize. However, if the crisis persists, current pricing structures may become the norm for consumer electronics.

Sources