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- A report reveals that only households with $100K above earnings buy gaming hardware.
- The sales have significantly reduced with Gen Z due to low buying power and high prices.
- Some studios also complained that the prices of gaming hardware have become too high.
Console prices have become ridiculously high over the last few years. Especially since the US tariffs came in, the PS5 hit a new high MSRP, and the prices are expected to go even higher. This means only the privileged ones can now afford the consoles.
A new study reveals that only high-income households in the US account for hardware sales. Whereas, the sales have shown a huge drop with the Gen Z, considering the prices have gone beyond their purchasing power.
Why it matters: Higher prices lead to fewer sales, which also lead to reduced game sales. Capcom recently also complained that high PS5 prices are the reason games don’t meet their sales targets anymore.
According to Circana’s Mat Piscatella, US households with over $100K income account for over 43% of the console/hardware sales. Previously, the number was 36%, but it has grown in the last few years.
In addition, 18-24-year-olds account for just 3% of the video game hardware sales. This has also gone down from the last few years, where over 10% accounted for the sales. This is a major worrying sign as those are the target audiences.
As things stand, gaming hardware prices are supposed to increase even more, which means the sales will be affected more. While there are a couple of years left in the current console generation, companies should think over their pricing strategies.
Nonetheless, with console sales in danger, game sales are in danger too. We’ve also seen an increase in game prices, where they used to cost $70, but modern AAA releases are not expected to cost $80 in the near future.
What are your thoughts on low gaming hardware sales? How do you think the numbers can increase? Let us know your opinions in the comments or join the discussion at the official Tech4Gamers Forum.
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News Reporter
Abdullah is an avid gamer who primarily plays single-player titles. If you can’t find him anywhere, he’ll probably be at his desk playing The Witcher 3 for the millionth time. When he isn’t playing games, he’s either reading or writing about them.
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