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The next generation of Sony's and Microsoft's consoles could be significantly more expensive than the current generation. Rising component prices mean PlayStation 6 and Xbox Project Helix could cost around $1,000 at launch. However, that price level could seriously dampen interest in the hardware and make it harder for manufacturers to quickly build a large user base. Analysts point to several possible ways companies could avoid that problem.
A $1,000 price could severely impact sales
According to Ampere Analysis, if the PlayStation 6 and Xbox Project Helix hit the market in 2028 with a price of around $1,000, the effects on the entire generation could be very serious. Estimates indicate that the total number of consoles sold in the first five years could be as much as 38 percent lower compared with a scenario assuming a $700 price. The problem would not be limited to hardware alone. Ampere Analysis also predicts about a 12 percent decline 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' entire lifecycle.
Sony and Microsoft have several ways to address the problem
One possible solution would be to push the launch of new devices beyond 2028. Manufacturers could then hope for a drop in component prices, but such a delay would also come with significant costs. Sony has already, among other things, secured production capacity in TSMC's 3 nm process, so changing the schedule could complicate the entire PlayStation 6 preparation process. A second option would be to keep the planned launch date while increasing hardware subsidies and using new monetization models. More aggressive digital sales strategies, optimizing distribution channels, or raising service prices could also be on the table. For players, though, this would not be ideal news, since some of the costs could be shifted onto subscriptions and additional services.
A third option would be to move away from the classic race toward ever more powerful components. Sony and Microsoft could focus more on new types of hardware and ways of using consoles, rather than allocating most of the budget to boosting graphical performance. PlayStation 6 is reportedly being developed in parallel with a new handheld, while Project Helix is expected to further bridge the console and PC worlds.
If the PlayStation 6 and Xbox Project Helix really cost around $1,000, the new generation could have a much tougher launch than the previous generation. A projected sales decline of 38 percent over five years shows how important the launch price will be. Sony and Microsoft may try to mitigate the problem by subsidizing hardware, changing business models, or offering a more diverse lineup of devices. At this point, however, it's not known how much we'll ultimately pay for the new consoles.
source: wccftech
