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The upcoming generation of consoles from Sony and Microsoft could be significantly more expensive than the current one. Rising component prices mean the PlayStation 6 and Xbox Project Helix could cost around $1,000 at launch. Such a price level could seriously curb interest in the hardware and make it harder for manufacturers to quickly build a large user base. Analysts point to several possible ways the companies could avoid this problem.
A price around $1,000 could hit sales hard
According to Ampere Analysis, if PlayStation 6 and Xbox Project Helix launched in 2028 with a price of about $1,000, the effects across the generation could be very serious. Estimates suggest the total number of consoles sold in the first five years could be as much as 38 per cent lower compared with a scenario assuming a $700 price. The problem would not be limited to the hardware alone. Ampere Analysis also predicts about a 12 per cent fall in the value of the games and services market in that scenario. For Sony and Microsoft this would mean fewer users buying games, add-ons or subscriptions, and therefore lower revenues across the consoles' life cycle.
Sony and Microsoft have several ways to tackle the problem
One possible solution would be to push the launch of the new devices beyond 2028. Manufacturers could then hope for component prices to fall, but such a delay would also come with significant costs. Sony already has secured 3 nm production capacity at TSMC, so changing the schedule could complicate the whole process of getting PlayStation 6 ready. A second option would be to keep the planned launch date while increasing hardware subsidies and using new monetisation models. More aggressive digital sales strategies, optimisation of distribution channels or service price increases could also come into play. That wouldn't be ideal news for players, however, since some of the costs could be shifted onto subscriptions and additional services.
The third option would be to move away from the classic race for ever more powerful components. Sony and Microsoft could focus more on new forms of hardware and ways of using consoles, instead of spending most of the budget on increasing graphics performance. PlayStation 6 is reportedly being developed in parallel with a new handheld, while Project Helix is expected to more closely integrate the console and PC worlds.
If PlayStation 6 and Xbox Project Helix really cost around $1,000, the new generation could have a much tougher launch than the previous one. The projected drop in sales of 38 per cent over five years shows how important the launch price will be. Sony and Microsoft may try to limit the problem by subsidising hardware, changing business models or focusing on a more diverse range of devices. At this point, however, it is not yet known how much we'll ultimately pay for the new consoles.
source: wccftech
