Is The $500 Console Dead? Analysts Warn Xbox And Nintendo Will Follow Sony’s Massive Price Hike

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With The Memory Crisis Not Ending Anytime Soon, This Could Be Inevitable.

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  • Analyst Piers Harding-Rolls has stated that Xbox and Nintendo could follow suit and increase console prices after Sony.
  • The analyst thinks these price hikes have been inevitable, and the gaming giants are in an awkward position due to the Middle East war.
  • These external circumstances have come at a bad time for the industry, as many were waiting for GTA 6 to sell consoles.

The enormous price increase for the PlayStation 5 console family has shocked players around the globe. Following this cost surge, the Digital edition of the PS5 is now the cheapest variant, coming in at $600.

The PS5 Pro, on the other hand, has received a hefty $150 price increase, which makes its current retail cost $900. If analysts are correct, this might not even be the worst-case scenario, as Nintendo and Xbox could also follow Sony’s lead for their hardware.

Why it matters: If most buyers are priced out of buying hardware, the gaming industry will lose out on a lot of money as GTA 6 is releasing this year.

Xbox Series Nintendo Switch
The Xbox Series and Nintendo Switch 2 could be next in line for a price surge.

While talking to EuroGamer, analyst Piers Harding-Rolls stated that it is very likely that Nintendo and Xbox will also increase the retail cost of their consoles. The director of Ampere Analysis explained that this price hike has been inevitable for a while due to the prolonged increase in memory and storage prices.

With no sign of prices easing largely due to demand for AI infrastructure, it wouldn’t be a surprise if Microsoft and Nintendo followed suit in the not-too-distant future.”

Furthermore, with the value of memory products not normalizing in the near future, Xbox and Nintendo will be forced to increase the market price of their hardware.

Harding-Rolls also thinks that the war in the Middle East has added to the predicament of the three gaming giants, which are now in a difficult position due to the upcoming wave of inflation. Moreover, with GTA 6 releasing later this year, the analyst states these external factors couldn’t have come at a worse time.

gta 6 physical featured
With GTA 6 around the corner, these price increases will impact purchasing power.

Both Sony and Xbox are expecting the Rockstar title to be a system seller, but if increasing costs make the $500 console redundant, the companies will miss out on a golden opportunity.

Do you think the console giants can bounce back from these trying times? Tell us in the comments below or head to the Tech4Gamers forum for discussion.

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