Something to look forward to: The rollercoaster that is SSD prices has taken another dip, one that should benefit PC gamers. After months of seeing the cost of the storage solutions rise, increased production by manufacturers is expected to result in prices stabilizing or even falling.
SSD prices have seen several surges and crashes over the last couple of years. A surplus of 3D NAND, memory chips, and SSDs, among other components, caused by a slowdown in PC demand in late 2022 led to lower prices.
With a glut of SSDs available and prices dropping, manufacturers slashed production output by 30 – 50% to try to reverse the trend. Samsung's Xi'an plant in China reportedly saw its operation rate drop as low as 10%, while Western Digital and Micron reduced their production capacity to below 50%.
The plan worked. The falling price of SSDs started to reverse course late last year, and 2024 has been filled with reports of consumers and businesses paying more for their speedy storage.
The good news is that another price drop, or at least a stabilization, looks to be on the way. As reported by The Chosun Daily (via PC Gamer), South Korea's top chipmakers – Samsung Electronics and SK Hynix – and Japan's Kioxia have been ramping up production of NAND flash memory. The move comes as the glut of these chips subsides as demand rebounds.
That demand is being driven by the AI boom, which has resulted in more AI data centers that need high-capacity NAND.
Kioxia, which implemented 30% production cuts in 2022 as demand for its 3D NAND declined, recently reverted to full production.
Increased production of NAND chips should stop the price rises we've experienced this year. While the demand is there, some experts believe that the rapid increase in production could outpace it.
"Except for high-capacity NAND used in AI data centers, it is difficult to say that the entire NAND market is recovering. The sudden production surge will likely bring down NAND prices, which have been rising," says Kim Yang-peng, a researcher at the Korea Institute for Industrial Economics and Trade.
It seems that SSD prices could soon return to the levels we saw for much of 2023. As game installs continue to get larger, that's something to celebrate.
