Component Crisis Comparable To Video Game Crash From 1983, Says Epic CEO

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Tim Sweeney Warns of Crisis Lasting At Least 3 Years!

Story Highlight
  • Tim Sweeney has compared the component shortage to the video game crash of 1983.
  • He expects to see high prices and poor supply for games for at least three more years.
  • Sweeney says that one solution is to build factories to meet demand, but this is easier said than done.

Gaming is currently in the worst state it has been since 2020, as far as prices are concerned. Amid ongoing component shortages and rising prices, most things have become unaffordable to audiences today.

Chiming in on the latest events, Epic Games CEO Tim Sweeney has called this component crisis comparable to the infamous video game crash from multiple decades ago.

Why it matters: Graphics cards, consoles, memory, storage, and everything else have become significantly more expensive over the course of the last 12 months.

Tim Sweeney Epic Fortnite
Tim Sweeney Is Worried About The Future

As reported by Eurogamer, Tim Sweeney expects to see component shortages last at least three years.

The Epic Games CEO says that demand for AI systems and data centers isn’t going down anytime soon and that it can outbid all of entertainment, leaving gamers with the short end of the stick.

As per Sweeney, one solution could be to build new factories to meet global demands. However, it goes without saying that this would require a lot of time and resources.

It’s an unexpected, severe disruption. The prices of RAM and storage are quadrupling, and not necessarily stopping there. 

The Epic Games CEO says that this crisis is the most severe gaming has seen since the 1983 industry crash.

DRAM & SSD Price Increase
DRAM & SSD Prices Are Going Up Constantly

The silver lining is that GTA 6 should temporarily boost the games industry. However, it remains to be seen how things will turn out in the long run.

What do you think about the games industry’s current crisis? Share in the comments below.

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