The Disappearance of Entry-Level PCs: Rising Memory Costs and Market Implications

The entry-level PC segment is projected to vanish by 2028 due to soaring memory costs, primarily driven by a global shortage of DRAM. Gartner's market report indicates that PC shipments are expected to decline by 10.4% in 2026, significantly impacting budget-conscious gamers and consumers. As manufacturers grapple with unprecedented memory prices, they are compelled to raise retail prices, making sub-$500 PCs increasingly unviable.

“Entry-Level PC Segment Will Disappear by 2028,” Says Gartner, as Soaring Memory Costs Start to Cripple ManufacturersAvoid Overpaying for RAM: Smart PC Build Adjustments in 2026

The ongoing DRAM shortage has severely disrupted the PC hardware market, leading to inflated prices across various components, including memory, storage, and graphics processing units (GPUs). This situation has forced manufacturers to reconsider their pricing strategies, as absorbing rising costs is no longer sustainable. Consequently, the traditional budget builds that once catered to entry-level gamers are becoming obsolete.

“Entry-Level PC Segment Will Disappear by 2028,” Says Gartner, as Soaring Memory Costs Start to Cripple Manufacturers

Ranjit Atwal, Senior Director Analyst at Gartner, emphasizes that manufacturers are left with few options. They must either accept a decline in unit volume or pass on the increased costs to consumers. This shift is expected to lead to a significant reduction in the availability of budget PCs, as the market adjusts to the new economic realities.

“Entry-Level PC Segment Will Disappear by 2028,” Says Gartner, as Soaring Memory Costs Start to Cripple Manufacturers

The disappearance of entry-level PCs will have profound implications for consumers, particularly those who rely on affordable gaming options. As prices for mid-range setups have surged—rising from approximately $1,300 to nearly $2,100 for similar configurations—many potential buyers may opt to delay purchases. Gartner predicts that the average lifespan of PCs will increase by 20% as consumers hold off on buying new hardware.

“Entry-Level PC Segment Will Disappear by 2028,” Says Gartner, as Soaring Memory Costs Start to Cripple Manufacturers

Critics argue that the rising costs and diminishing availability of entry-level PCs limit access to technology for many users. Some suggest that the market's shift towards higher-priced systems could alienate budget-conscious gamers, forcing them to seek alternatives or abandon PC gaming altogether.

“Entry-Level PC Segment Will Disappear by 2028,” Says Gartner, as Soaring Memory Costs Start to Cripple Manufacturers

Gartner's report underscores the urgency of the situation, stating that "PC manufacturers are bound to pass on the cost pressure to customers." This sentiment reflects a broader concern within the industry regarding the sustainability of budget PC offerings in the face of escalating costs.

“Entry-Level PC Segment Will Disappear by 2028,” Says Gartner, as Soaring Memory Costs Start to Cripple Manufacturers

As the PC market adapts to these challenges, consumers may explore alternative options such as pre-built systems, which could offer better value due to prior bulk purchases of memory. Additionally, the used market may present opportunities for budget-conscious buyers, as sellers may not fully account for current memory prices in their listings.

Avoid Overpaying for RAM: Smart PC Build Adjustments in 2026

• “The sub-$500 entry-level PC segment will disappear by 2028.” — Ranjit Atwal, Sr Director Analyst at Gartner

“Entry-Level PC Segment Will Disappear by 2028,” Says Gartner, as Soaring Memory Costs Start to Cripple Manufacturers

• “But in the current situation, PC manufacturers are ultimately 'bound' to pass on the cost pressure to customers.” — Gartner Report

“Entry-Level PC Segment Will Disappear by 2028,” Says Gartner, as Soaring Memory Costs Start to Cripple Manufacturers

In summary, the combination of rising memory costs and declining availability is reshaping the landscape of the PC market, particularly for entry-level systems. As consumers navigate these changes, the future of budget gaming remains uncertain.

“Entry-Level PC Segment Will Disappear by 2028,” Says Gartner, as Soaring Memory Costs Start to Cripple Manufacturers