PS6 and Next Xbox Likely to Stay at $1,000 Even After RAM Crisis
▼ Summary
– Gaming hardware costs have risen sharply, with PS5 and Xbox Series X launching at $500 in 2020 but now priced higher due to pandemic supply issues, tariffs, and a memory chip shortage driven by AI infrastructure demand.
– The RAM crisis has led to inflated prices like the $899 PS5 Pro, $749 Xbox Series X, and $1,049 Steam Machine, with shortages expected to last until at least 2028.
– The author argues the $500 console is gone for good, as next-gen systems like the PS6 likely won’t launch near that price, since consumers will have adjusted to nearly $1,000 hardware costs.
– Historical GPU shortages from crypto mining show that after supply normalizes, manufacturers raise launch prices to match inflated consumer expectations, suggesting a similar pattern for consoles.
– The Switch 2 sold well at $449 despite higher costs, but the author notes demand isn’t guaranteed, and Sony won’t subsidize PS6 costs while Xbox’s future may lean toward pricier PC-like hardware.
Gaming hardware has never been pricier. Multiple factors have driven costs skyward, and while I’ll break those down shortly, the bottom line is that this is a brutal moment to shop for a new console or PC. Even worse, there’s no turning back.
For two decades, the entry price for console gaming hovered around $500. The Xbox and PlayStation systems from the last three generations all debuted in the $400 to $500 bracket, then typically dropped over time through slim redesigns and seasonal sales. This generation flipped that script. The PS5 and Xbox Series X arrived in 2020 at that familiar $500 sweet spot, but nearly six years later, they’ve only gotten more expensive. COVID-era supply chain chaos triggered shortages that kept prices pinned at or above MSRP for over two years.
Once supply finally caught up around year three, it looked like we might hit the usual mid-cycle price cuts. Then President Trump’s aggressive tariff policy upended global trade, forcing Sony and Microsoft to raise prices. Even Nintendo, long the champion of budget-friendly hardware, had to price the Switch 2 at $449. That storm might have passed, but the chip shortage rolled in right behind it. A massive buildout of AI data center infrastructure has been quietly fueling a shortage of memory chips used in graphics cards, storage, and RAM. We’ve covered this ongoing RAM crisis extensively at IGN, from the $899 PS5 Pro and $749 Xbox Series X to the Steam Machine jumping from $750 to $1,049. And relief isn’t coming soon. Valve says the memory crisis is “still getting worse,” while Micron’s CEO expects the shortage to stretch well into 2028.
So, 2029? Could we see a $500 console again? Not a chance. I believe the era of the $500 console is finished. By 2029, we’ll be looking at the PlayStation 6 and whatever Xbox’s Project Helix becomes. Sure, the aging PS5 and Series X might see discounts by then, but the next generation won’t land anywhere near the launch prices we’ve grown accustomed to.
The harsh truth is that by the time those next-gen systems arrive, the market will have adjusted to these elevated price points. Even if supply chains stabilize, tariffs vanish, and the RAM crisis resolves, consumers will already be conditioned to spending close to $1,000 on gaming hardware. Sony and Microsoft will have little reason to undercut that expectation. Look at how the GPU market handled its own supply shocks. In 2017 and again in 2020, crypto mining booms caused shortages and scalper-driven prices far above MSRP. Both times, stock levels eventually normalized, but the next GPU generation still launched with significantly higher prices, reflecting what buyers had grown used to paying. There’s no reason to think this cycle will differ.
Of course, it’s possible consumers won’t embrace a $1,000 console as enthusiastically as they did previous generations, but I doubt demand will falter. The Switch 2 became the second fastest-selling console in U. S. history despite its steeper price. Meanwhile, Steam Deck demand has collapsed after its price hikes, though that’s unsurprising given better, cheaper alternatives now exist.
Competition probably won’t keep next-gen prices in check either. Sony has already said it won’t subsidize the PS6’s cost. Xbox’s future looks increasingly PC-like with Project Helix, and graphics cards aren’t getting cheaper. Add in broader inflation, which hit a 40-year high in 2022 and has stayed elevated since, and the picture gets even grimmer. Adjusted for inflation, the 60GB PS3’s $600 launch price would be roughly $1,000 today. Seen that way, we’ve been lucky console prices stayed low for so long. Either way, the party is over. Like it or not, the $500 console is gone for good.
(Source: IGN)
