Not so much demand is softening
But that lithography improvements have been slowing down, so rather than wait long enough to double the number of bits in a "standard" (i.e. sweet spot manufacturing with lowest cost per bit) memory chip, they are making chips where they only increased the number of bits by 1.5x.
It is basically a stopgap, so e.g. instead of waiting a full four years to double the number of bits they will give you 1.5x the bits in year 2 and then give you the 2x bits in year 4. Then from that point maybe you get 1.5x bits in 2 1/2 years and 2x bits in 5 years.