The PS6 and Next Xbox Will Still Probably Cost $1,000, Even After the RAM Crisis Ends

Key Points:

• Gaming hardware prices have surged due to supply chain disruptions from COVID-19, tariffs, and a prolonged memory chip shortage driven by AI data center demand, leading to consoles like the PS5 Pro and Xbox Series X costing significantly more than previous generations.
• The traditional $500 price point for consoles, stable for two decades, is unlikely to return, with next-generation consoles expected to launch near or above $1,000 as the market adjusts to higher costs and consumers grow accustomed to premium pricing.
• Historical parallels with GPU price inflation during cryptocurrency booms suggest that even after supply normalizes, hardware prices tend to remain elevated due to market expectations and demand.
• Despite higher prices, demand for consoles remains strong, exemplified by the Switch 2’s rapid sales, though some devices like the Steam Deck have seen demand drop after price increases, highlighting the sensitivity of consumers to cost versus value.
• Inflation and lack of competitive pricing pressure—exemplified by Sony’s refusal to subsidize future consoles and the PC-like nature of upcoming Xbox hardware—further cement the end of affordable $500 consoles in the foreseeable future.