Is a $1,000 Handheld the Future of Gaming?
▼ Summary
– Microsoft and Asus launched the ROG Xbox Ally X and ROG Xbox Ally handhelds priced at $999 and $599, respectively, positioning them as premium-priced PCs rather than traditional consoles.
– The traditional console model of subsidizing hardware to sell at a loss and recoup costs through games and services is changing, as Xbox Series X prices have increased and Microsoft is selling fewer consoles.
– Xbox is shifting its strategy away from hardware exclusivity by releasing its biggest games on rival platforms like PlayStation and in the cloud to maximize sales.
– The next Xbox may not be a traditional console but a series of PCs, testing how much its fanbase is willing to pay for niche, luxury hardware.
– Industry-wide price increases for consoles and games are becoming the new normal, as external factors like tariffs and changing consumer tolerance for high-priced nostalgic toys reduce resistance to higher costs.
The gaming world is buzzing with the arrival of the $1,000 ROG Xbox Ally X, a handheld device that signals a dramatic shift in how we define a game console. This isn’t just a new gadget; it’s a potential glimpse into a future where the traditional console model is turned upside down. Microsoft, in partnership with Asus, has introduced two versions: the high-end Ally X at $999 and a less powerful base model for $599. The critical point to understand is that these devices are essentially Windows PCs with an Xbox interface layered on top, which explains their computer-like pricing rather than the subsidized cost we expect from consoles.
For decades, the established pattern was clear. You bought a console at launch knowing it was the most expensive, least refined version. Over time, the hardware would become cheaper, smaller, and more feature-rich. That pattern appears to be breaking. Today, those who purchased a PlayStation 5 or Xbox Series X at launch seem prescient, as prices have since increased. The old strategy of selling consoles at a loss to make money on software and subscriptions is faltering. Microsoft has admitted to this model in the past, but with hardware sales slowing and services like Xbox Game Pass not meeting expectations, the company is exploring new avenues.
Xbox is fundamentally changing its identity. It’s no longer just about the box under your TV. To maximize revenue, major Xbox franchises are appearing on rival platforms like PlayStation, where they often become best-sellers. The strategy is about putting games everywhere, on PC, in the cloud, and potentially on phones. In this context, the next “Xbox” might not be a single console but a series of devices, perhaps even a line of branded PCs. This has been the trajectory since the Xbox adopted a PC-like x86 architecture.
This evolution points toward a future where the dedicated console becomes more of a luxury item. Luxuries come with a higher price tag, and Microsoft may be using the Ally to test the spending limits of its most dedicated fans. We live in a time of economic pressure, yet there is also a strong market for high-priced nostalgia and escapism. Companies like Lego have successfully launched extremely expensive sets, finding that a dedicated niche audience has no clear spending ceiling. Similarly, a $1,500 transforming Transformers toy exists because there are buyers for it.
Historically, vocal gamer backlash has acted as a brake on price increases. The infamous “$599 US dollars” announcement for the PlayStation 3 left a lasting scar on the industry. However, recent global factors like component shortages and tariffs have given companies a justification to raise prices, and it’s unlikely they will retreat once those pressures ease. Nintendo now sells games for $80, and while Microsoft has held the line so far, that resistance may not last.
The big question is, what does this mean for the next generation? How much will a PlayStation 6 or the next Xbox console cost now that the psychological price barriers are crumbling? The success of the Xbox Ally will be a significant data point. While Xbox boss Phil Spencer stated that the market cannot be grown with $1,000 consoles, the goal may have shifted. The future of Xbox might not be about selling the most boxes, but about collecting licensing fees from partners who build premium hardware for a devoted audience, while the games themselves reach players on every possible screen.
(Source: The Verge)
