Analysts warn that Sony's PlayStation 5 price increase may prompt Microsoft and Nintendo to follow, driven by rising component costs and market pressures.
© A. Krivonosov
The price hike for PlayStation 5 consoles may just be the start of broader changes in the gaming market. Analysts warn that following Sony's lead, Microsoft and Nintendo could well take similar steps.
According to Ampere Analysis analyst Piers Harding-Rolls, rising component costs make price increases nearly unavoidable. Prolonged price increases for memory and storage, partly driven by the rapid development of AI infrastructure, have significantly impacted the production costs of gaming systems. Under these conditions, manufacturers are forced to protect their margins, even if it means raising prices for end users.
The expert notes that Sony likely kept prices down for a long time thanks to previously signed component supply contracts, but those agreements may have expired. Meanwhile, the market situation isn't improving: demand for memory remains high, and geopolitical tensions, including conflicts in the Middle East, could trigger a new wave of inflation.
If Microsoft and Nintendo follow Sony's example, it would be an unprecedented move for an industry where consoles traditionally become cheaper over their lifecycle. The situation could be particularly challenging for Nintendo, which only recently launched the Switch 2 and is keen to attract a new audience.
Analysts also warn of potential consequences for the entire market. More expensive consoles could slow the influx of new users and, as a result, reduce demand for games, including major releases. Against this backdrop, with anticipated projects like GTA VI on the horizon, manufacturers will need to balance price increases with maintaining audience interest.