This $1,999 gaming handheld just got too expensive to make, and you can blame AI for it

AYANEO first unveiled the impressive Next 2 Windows handheld in December, with the device hitting IndieGogo in February. Unfortunately, the company has some bad news for those looking forward to the machine.

AYANEO announced on IndieGogo that it has temporarily suspended pre-orders for the new Windows handheld due to rising storage costs. These skyrocketing costs are associated with the AI/RAM crisis. The company claimed that storage costs were very high when it first unveiled the Next 2, adding that it was therefore already under “significant cost pressure.” However, it chose to open pre-orders and release it as planned.

Unfortunately, AYANEO found that storage costs continued to rise exponentially in a short space of time:

However, after the Chinese New Year, when we communicated with our suppliers again to confirm the latest storage procurement prices, we found that storage prices had increased to several times higher than before the holiday. Under such circumstances, the overall cost of the product has become far higher than our current selling price. Therefore, after careful consideration, we have decided to suspend the pre-orders of Next 2.

The company added that the total cost of the Next 2 is almost twice the original selling price. For what it’s worth, the base 32GB/1TB model started at $1,999, or an early bird price of $1,799. The top-end 128GB/2TB model had a recommended price of $4,299, but $3,499 for early birds.

AYANEO added that this was a temporary suspension and that it might resume sales of the handheld if storage prices fall to “more reasonable levels.” The company also confirmed that it would honor existing pre-orders and that after-sales service wouldn’t be affected.

This is nevertheless bad news for gamers wanting a premium PC-based handheld. The AYANEO Next 2 offers an AMD Ryzen AI Max 385 or Max Plus 395 processor, 32GB to 128GB of RAM, 1TB or 2TB of storage, a 9.06-inch 165Hz OLED screen, and dual touchpads. However, the standout feature might be the 116.1Wh battery, which puts many laptops to shame. By contrast, the ASUS Xbox ROG Ally X offers an 80Wh battery. This huge battery comes with a ridiculous weight penalty, as the device weighs 1.4 kilograms (three pounds).