‘The next generation won’t replace this one so much as sit on top of it’ — Industry analysts say Sony, Microsoft, and Nintendo’s ‘relentless push for higher-end performance will need to be moderated’ to avoid $1000 launch consoles Demi Williams | usagoldmines.com

• Several industry analysts say Sony and Microsoft may need to scale back their “relentless push for higher-end performance” to avoid $1000 consoles
• Piers Harding-Rolls at Ampere Analysis says ambitions will need to be “moderated” to avoid breaching the hefty price point
• Rhys Elliott at Alinea Analytics anticipates that the PS5 will stick around well after the PS6 launches due to rising costs

Several industry analysts have suggested console manufacturers will need to temper their ambitions for next-generation hardware to avoid breaching the $1000 console launch mark.

Unlike last-generation, current-gen console prices only seem to be getting more expensive years after launch. Whether it’s the ongoing DRAM crisis or the AI boom that’s made components even more costly, the games industry is at a point where the future of affordable hardware is looking pretty grim.

There have been conversations over the past few years about what this could mean for next-gen consoles — namely the PS6 and Xbox’s Project Helix — and whether manufacturers could ever reach a point where their hardware could breach $1000.

In an interview with TechRadar Gaming about rising costs, Piers Harding-Rolls at Ampere Analysis suggested Sony, Microsoft, and Nintendo may have to scale back their ambitions for realistic graphics and higher performance if they ever want to avoid that huge price point.

“The relentless push for higher-end performance will need to be moderated,” Harding-Rolls said.

Omdia’s James McWhirter also suggested hardware stratification across tiers may be in the cards, including a cheaper Nintendo Switch 2 with more bundles that offer more value, and manufacturers may delay new hardware launches for the foreseeable future in a bid to wait out the rising cost of components.

However, this could also mean longer console generations. Rhys Elliott at Alinea Analytics anticipates the PS5 will stick around well after the PS6 launches, and cross-generation games may allow players the opportunity to delay their hardware upgrades.

“The next generation won’t replace this one so much as sit on top of it,” Elliott claimed.