Game Consoles Are Pricing Themselves Out of Relevance

"Looking forward to the next Xbox and PlayStation consoles, analysts are predicting $900 as the low end of possible pricing--and that number is seeming more and more optimistic. That's a lot of money to spend for a dedicated machine that, for most console owners, is just used for playing Call of Duty or the latest football game. Consoles are becoming too expensive for all but the most dedicated gamers to justify--especially when gamers in their teens and early 20s have grown up in a world where a console is no longer needed to play the vast majority of games."

"While the gaming industry as a whole is still massive, the traditional sector of games are struggling. Games industry sales tracker Circana reported that last year, games spending in general dropped by 4% compared to last year. Hardware spending specifically dropped 27% percent. Xbox Series and PlayStation 5 sales dropped by 70% and 40%, respectively. Nintendo's numbers were bolstered by the launch of the Nintendo Switch 2, but still saw a 10% drop."

"Both PS5 and the current Xbox consoles have seen multiple price hikes in the last 18 months, and the Nintendo Switch 2 launched at $450 in the US, 50% higher than the launch price of the first Switch. Video game software and hardware have both been remarkably inflation-resistant over the years. In the days of cartridges, games for Sega and Nintendo systems typically cost around $50, with exceptions for games with extra memory or special chips built in (e.g. Final Fantasy VI, Star Fox)."

Console gaming is no longer displacing PC gaming; instead, PC gaming is growing while consoles falter. Analysts expect upcoming Xbox and PlayStation consoles to start around $900, making dedicated hardware harder to justify for many players. Console use is often limited to a few mainstream titles, and younger gamers increasingly expect to play most games without owning a console. Overall game spending fell 4%, with hardware spending down 27%. Xbox Series and PlayStation 5 sales dropped sharply, while Nintendo declined less due to the Switch 2 launch. Price hikes across current consoles and higher launch pricing for Switch 2 add pressure.

Read at GameSpot