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Rising hardware prices have been causing concern among gamers for months. First Microsoft and Sony announced price increases, and later further forecasts predicted even pricier hardware. Now former PlayStation boss Shawn Layden has spoken out. He says the current situation could mean the definitive end of cheap consoles. It's all due to rising production costs and memory prices at record highs.
PlayStation 5 may never get cheaper
Shawn Layden, former president of PlayStation Worldwide Studios, thinks gamers shouldn’t count on significant price cuts for the PlayStation 5. He says the current crisis around RAM and memory chips has completely changed the console market. In previous generations it was normal for hardware prices to be gradually reduced a few years after launch. Consoles typically started at around $399, later falling to as little as $199. That’s when sales accelerated the most. According to Layden, that scenario won’t repeat in this generation. Rising production costs mean manufacturers don’t have room for big cuts. As a result, the PlayStation 5 could remain an expensive device for the rest of its life cycle. The same situation may affect future consoles too. It marks the end of the sales model gamers have been used to for many years. More and more experts share similar forecasts.
The next generation could be even more expensive
The problems aren't limited to PlayStation. In recent months Microsoft has also raised the prices of its consoles, and memory makers are signing multi‑year deals that keep prices at current levels. That makes the prospect of cheaper hardware increasingly unlikely. Analysts predict the next generation of consoles could cost around $1,000. Such forecasts are already being made in the context of PlayStation 6 and the new Xbox. Of course, for now these are only predictions and no manufacturer has revealed official prices for future devices. Still, more and more signs indicate that the era of $399 consoles is gone for good. For many gamers this could mean holding on to their current gear longer or upgrading to new generations less often. Everything suggests the games industry is entering a completely new era in terms of hardware prices.
The former head of PlayStation believes the PS5 may never see significant price cuts again. Rising production costs mean cheap consoles are becoming a thing of the past, and future generations could be even more expensive.
source: tech4gamers
