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The next 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 US$1,000 at launch. Such a price could seriously curb interest in the hardware and make it harder for the manufacturers to quickly build a large user base. Analysts point to several possible ways the companies could avoid this problem.
A $1,000 price point could hit sales hard
According to Ampere Analysis, if PlayStation 6 and Xbox Project Helix were released in 2028 at a price of around $1,000, the consequences for the generation could be very serious. Estimates indicate the total number of consoles sold in the first five years could be up to 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 decline in the value of the games and services market in such a 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 release of new devices beyond 2028. Manufacturers could then hope for component prices to fall, but such a delay would also entail significant costs. Sony has already, among other things, secured production capacity in TSMC’s 3 nm process, so changing the schedule could complicate the whole PlayStation 6 preparation. A second option would be to keep the planned release date while increasing subsidies for hardware and using new monetisation models. More aggressive digital sales strategies could also be considered, along with optimisation of distribution channels or price rises for services. For players this would not be ideal news, as some of the costs might be shifted onto subscriptions and additional services.
A third possibility is to move away from the classic race for ever more powerful components. Sony and Microsoft could concentrate more on new forms of hardware and ways of using consoles rather than spending the bulk of their budget on boosting graphical performance. PlayStation 6 is, according to reports, being developed in parallel with a new handheld, while Project Helix is set to link the console and PC worlds more closely.
If the PlayStation 6 and Xbox Project Helix really cost around $1,000, the new generation could have a much tougher start than the previous one. A projected sales decline 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 the hardware, changing their business models or offering a more diverse range of devices. At this point, however, it is not known how much we will ultimately pay for the new consoles.
źródło: wccftech
