Why the PC market is showing a decline

After an abnormal surge in sales during the pandemic, when everyone was trying to equip a home office or gaming area, an expected lull has set in. Users who upgraded their hardware 2-3 years ago are not yet ready for the next large-scale purchase. This has led to a decrease in overall desktop shipments by 10-15% compared to peak figures.

• Market saturation after mass purchases in 2021-2022;

• Changing consumer priorities towards mobile gadgets;

• Extending the operating life of existing systems due to the high performance of previous generations.

Factors pushing prices up

Paradoxically, the decline in sales does not mean that products are getting cheaper. On the contrary, MSI points to several critical factors that are forcing manufacturers to reconsider their price tags. The main driver is the introduction of AI technologies. New motherboards and laptops with AI support require a more complex power architecture and significantly more powerful cooling systems.

It is also worth considering the transition to new memory standards. It is expected that the next generation of video cards will use GDDR7, the production of which is much more expensive in the initial stages. If the average price of a mid-segment gaming laptop used to be around $1,200 – $1,500, then new models with similar positioning can start from $1,700 – $2,000.

The role of AI in shaping the value of iron

AI technologies are becoming an integral part of the MSI ecosystem. Integrating neural processors into chipsets requires manufacturers to purchase more expensive licenses and use advanced manufacturing processes at TSMC factories. The cost of producing a single wafer with chips has increased by 20% over the past year, which will directly affect the wallets of end customers in the US and around the world.

The future of gaming laptops and desktops

MSI plans to focus on the premium segment, where users are willing to pay for innovation. It is predicted that the demand for budget solutions will continue to fall, while the enthusiast segment will remain stable. However, even in the “budget” class, prices will rarely fall below $900 – $1000 for a system capable of running modern games at high settings.

• Expected increase in the cost of video cards by 15-20%;

• Lack of high-speed drives and new generation RAM;

• Increased costs for logistics and R&D development in the field of AI.

What does this mean for the consumer?

If you’ve been planning to buy a gaming PC, MSI experts hint that now may be the last good moment before a major price increase. It is expected that by the end of 2025 the average cost of a gaming station will increase by at least $250 – $400 depending on the configuration. The PC market is becoming an increasingly expensive hobby, where the entrance ticket to the world of quality gaming requires an increasingly large investment.