Industry analysts suggest that Sony, Microsoft, and Nintendo should temper their focus on high-end performance to prevent next-generation console prices from exceeding $1,000. Piers Harding-Rolls from Ampere Analysis notes that adjusting performance targets is necessary to keep hardware affordable for consumers.
The current market environment shows that console prices have not decreased over time, unlike in previous generations. Factors such as the ongoing DRAM memory crisis and rising component costs driven by the AI boom are putting significant pressure on production expenses, making future pricing trends uncertain.
Rhys Elliott of Alinea Analytics predicts that the PlayStation 5 will remain on the market for an extended period even after the launch of the PlayStation 6. Meanwhile, James McWhirter from Omdia expects a clearer market segmentation, where companies like Nintendo might prioritize cost-effective options like the Switch 2.
To mitigate the impact of rising costs, manufacturers may delay the release of new hardware. Strategies such as offering more bundle packages are expected to become more common to maintain value for consumers while navigating the challenging economic landscape of the gaming industry.
