Australian gamers face steep console price rises amid broader inflation pressures
Record price increases for gaming consoles and related tech are linked to global chip shortages and rising inflation, prompting calls for tighter fiscal policy in Australia.
Australian consumers are seeing the sharpest price hikes on record for video-game consoles and related hardware, with the cost of a Nintendo Switch 2 up about 10% this year, the Sony PlayStation 5 up 20%, and high-end laptops and smartphones also rising sharply. The September inflation report from the bureau of statistics showed a 15.5% year-on-year increase in the price of games and toys, the largest rise in that category ever recorded.
The surge is attributed to a global shortage of semiconductor chips, driven by an AI-related construction boom and heightened demand across multiple industries. SK Hynix reported a 20% rise in average selling prices for its key products over the past three months and said supply constraints are expected to continue through 2030.
Economists note that the higher prices are feeding into broader inflationary pressures. The headline inflation rate for September was 4.3%, with the underlying measure at 3.6%, prompting the Reserve Bank of Australia’s monetary policy committee to consider another interest-rate increase that could lift the cash rate to 4.85%, an 18-year high.
Treasury officials, including Finance Minister Katy Gallagher and Treasury Secretary Jenny Wilkinson, who also sits on the Reserve Bank’s policy committee, are under pressure to tighten fiscal spending in upcoming budget updates. State and territory treasurers are similarly urged to curb expenditures as the government confronts a $31.5 billion budget deficit.
Analysts also point to external factors such as higher oil prices, which have risen from US$60 to over US$115 a barrel following geopolitical tensions linked to the United States’ conflict with Iran, further feeding global inflation.
"Huge demand from across the world means supply shortages are likely to persist through to 2030," said SK Hynix chief financial officer Kim Woo-hyun.
Treasury secretary Jenny Wilkinson noted that the data-centre construction boom is competing for labour and resources with government infrastructure projects and the housing sector.
The combination of rising consumer prices for gaming equipment, persistent chip shortages, and broader macro-economic challenges is prompting calls for coordinated monetary and fiscal policy actions to ease demand in the Australian economy.