Business · Companies · 17 hrs ago
Analysts say rising costs could push console makers to moderate next-gen plans
Rising component costs are putting pressure on the makers of PlayStation, Xbox and Nintendo consoles.
Analysts say console makers may need to moderate hardware ambitions to keep next-generation systems from reaching $1,000 at launch.
Higher performance and more realistic graphics can make new hardware more expensive.
The pressure comes as current-generation consoles have become more costly even years after launch, with component shortages and demand linked to AI cited as factors.
The PS5 could remain in use after the PS6 launches, according to one analyst, with games released for both generations helping players delay upgrades.
Another possibility is offering hardware at different price levels or delaying launches while component costs remain high.
New consoles may add to, rather than quickly replace, current ones, extending the time players use older systems.
Industry analysts say console makers may need to moderate next-generation hardware ambitions to avoid launch prices reaching $1,000.
Piers Harding-Rolls of Ampere Analysis said the push for higher performance will need to be moderated.
Rising component costs, including those linked to the DRAM crisis and AI boom, are putting pressure on hardware affordability.
Analysts also expect options such as tiered hardware, delayed launches and longer console generations.
Rhys Elliott of Alinea Analytics said the PS5 could remain in use well after the PS6 launches.
- Who
- Sony, Microsoft and Nintendo, whose next-generation console plans are discussed by industry analysts.
- What
- Analysts say makers may need to moderate hardware ambitions to avoid $1,000 launch consoles.
- When
- The article was published on November 8, 2026. It does not give a date for any next-generation console launch.
- Where
- Not stated
- Why
- Rising component costs are making console hardware more expensive and threatening affordability.
This story does not have two clearly opposing sides.
Discussions have taken place about how rising costs could affect next-generation consoles.
TechRadar published analysts’ views on moderating next-generation console plans.
- Potential launch price
- $1,000
- Analyst
- Piers Harding-Rolls, Ampere Analysis
- Analyst
- James McWhirter, Omdia
- Analyst
- Rhys Elliott, Alinea Analytics
- Consoles mentioned
- PS5, PS6, Xbox Project Helix, Nintendo Switch 2
What people are saying
The relentless push for higher-end performance will need to be moderated
The next generation won’t replace this one so much as sit on top of it