Gaming as a hobby has steadily become more expensive over the last few years, with rising hardware prices being a major factor in this trend.
Practically every modern console now costs more than it did only a few years ago, and even more recently released consoles like the Nintendo Switch 2 are no exceptions to this trend.
Valve’s Steam Machine marks the latest hardware release to brace the games industry, and to nobody’s surprise, the PC-console hybrid costs an arm and a leg. In fact, looking at console pricing history, the Steam Machine costs far more than anything PlayStation, Xbox, and Nintendo have ever put out.
Because the situation around memory and storage pricing is expected to change for the worse before it gets better, it seems fairly safe to assume that the upcoming PS6 and Xbox Helix will shock many with their prices.
Why it matters: Consoles have historically been an affordable entry point into the world of games, but this generation has deviated from this trend.
Valve’s $1000+ Steam Machine
For context, Valve announced a $1049 price tag for the base Steam Machine earlier this week. Keep in mind that the hardware itself ships with less storage than both the PS5 and Xbox Series X from 2020, and it also skips a controller.
Given the current market situation, it isn’t necessarily hard to see the rationale behind these decisions, but it does set a precedent that console manufacturers may follow moving forward.
Recently, it has also been confirmed that Valve initially aimed to launch the Steam Machine around the $750 mark. This means that the gaming giant was forced to up-sell the hardware by around 50%, showcasing the dire state of the hardware market.
Some may argue that PlayStation and Xbox aren’t Valve, and Valve isn’t in any position to be setting trends. However, the reality is that the industry rarely leaves money-making opportunities on the table.
For instance, once PlayStation began the trend of $70 games, it didn’t take long for others to join the bandwagon. Similarly, when Nintendo launched Mario Kart World for $80, Xbox attempted to follow suit, and it was only customer backlash that stopped it from doing so.
Currently, console pricing has yet to receive nearly as much pushback, and sales haven’t necessarily taken a huge hit. As such, the writing on the wall couldn’t be any clearer for all gaming giants.
The Console Price Creep
As mentioned earlier, console prices have risen steadily over the last few years. However, not all of these prices went up due to the component crisis alone.
In fact, before the brunt of the RAM and SSD shortage hit manufacturers, consoles like the PS5 and Xbox Series S|X had already seen multiple price increases. At present, the PS5 Pro is being sold for nearly $1000, and the Xbox Series X is typically priced at over $600.
Console gaming has never been as expensive, and if this trend is anything to go by, prices are not coming down anytime soon. In fact, console prices have moved in the opposite direction this generation.
Where hardware typically became cheaper over time, the PS5 and Xbox Series X are significantly more expensive today than they were in 2020. This leaves us with the question of next-generation hardware and how companies will balance costs with affordability.
On Microsoft’s end, Xbox Helix has been described as a premium option by many insiders. Although CEO Asha Sharma has acknowledged the need for more affordable hardware, Microsoft will likely observe the Steam Machine’s reception with great interest now that Valve has made its move.
The PS6, on the other hand, is expected to be priced more modestly. However, Sony’s PS5 Pro is the perfect example of just how far the gaming giant is willing to push the needle when it comes to console pricing.
$1000 Consoles Are Only A Matter of Time
The sad reality is that $1000 consoles would no longer be surprising to most people. Analysts across the globe believe $1000 is now the floor for console pricing and a real possibility, largely due to the memory supply situation.
The likes of Samsung, SK Hynix, and Micron are no longer too interested in the consumer segment due to the humongous demand for memory in the AI segment. This means that securing memory has been a nightmare for all major manufacturers, whether it be PlayStation, Xbox, or Nintendo.
Even if manufacturers end up launching consoles for under $1000, persistent price hikes similar to this generation’s would eventually push pricing beyond the $1000 mark. Similarly, PlayStation and Xbox could launch stripped-down consoles to keep pricing under control.
The idea of Microsoft shipping Xbox Helix without a controller has been discussed recently, and Sony is likely to sell disc drives as an add-on to the PS6. In such cases, the complete console experience would still end up close to $1000 or more.
And if all of this isn’t concerning enough, Sony will most certainly delve into four-figure pricing territory with an upgraded next-gen console like the PS6 Pro.
When all is said and done, it’s hard to fathom a future for the industry where console gaming is anything but unaffordable for the masses. The silver lining here might be an extended cross-gen period, giving owners of the PS5 and Xbox Series S|X some more time to enjoy their hard-earned purchases.
Unfortunately, with console pricing as it is, current-gen adoption is still tough for millions of gamers out there.
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[Senior News Reporter]
Avinash is currently pursuing a Business degree in Australia. For more than 5 years, he has been working as a gaming journalist, utilizing his writing skills and love for gaming to report on the latest updates in the industry. Avinash loves to play action games like Devil May Cry and has also been mentioned on highly regarded websites, such as IGN, GamesRadar, GameRant, Dualshockers, CBR, and Gamespot.
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