Everything is getting more expensive, and with industry reports pointing to a 2027 release for Xbox’s next-gen Codename Helix consoles and Sony’s PlayStation 6, there’s plenty of concern about pricing. As AI continues to drive up hardware prices, the expected Bill of Materials (the cost of materials to make the PS6) increased from around $760 in March to nearly $1000 just months later. The difference comes down to the high DRAM and SSD prices due to AI.
As such, there’s plenty of reason to delay the release of the next-gen consoles. Most console generations indeed last seven years, but that shouldn’t be a hardline rule. If Xbox Helix and the PS6 release at $1000+, the simple fact is that most users will probably not upgrade. It’s too expensive for what’s probably a small technical leap. It remains to be seen if anything comes out of this next console generation right now, but PlayStation did address its plans to tackle rising prices.
PlayStation Responds to Pricing Question About the PS6
In a recent investor Q&A, PlayStation directly addressed the company’s “next-generation platform” and its plans for the company’s hardware profitability, keeping in mind that as expenses go up, profitability goes down. It surprises no one that PlayStation will stay in the hardware side of the market, with the executives calling PlayStation consoles the foundation of its business and stating that it intends to expand the ecosystem beyond the living room. That said, when it comes to pricing of future PlayStation consoles (via VGC), the company stated:
“As a principle, we do not intend to sell hardware at significant losses. At the same time, we are carefully monitoring the market and continuing to evaluate our approach. We believe it is important for us to make every effort to ensure that customers fully understand the value we provide in relation to pricing.”
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Consoles have historically been sold at a loss, as devices are typically capable of recouping prices through software. For someone to buy PlayStation games, they need to own a PlayStation console after all. However, the cost of manufacturing has gone up dramatically, the Bill of Materials does not reflect all expenses, and that means prices are likely to go up. “Significant losses” does not mean it won’t sell consoles at a loss, but that the days of brand-new $500 consoles are over.
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Image via Marvel, PlayStation -
Image via Sony -
That said, there are plenty of other factors at play. PS5 prices have gone up dramatically around the world, for example, but Sony just released a special Midnight Black PS5 at a serious discount—though just in Japan. It is a region-locked console, but it’s at least one example of PlayStation figuring out a way to lower prices for some users. Unfortunately, nothing similar is currently expected for the United States.
Plenty could change between now and the PS6’s release. PlayStation has reportedly not committed to any plans regarding the release date of the PS6, meaning that delays are possibly on the cards; on the other hand, manufacturing agreements are likely in place. PlayStation is not completely 100% open about the PS6 yet, but it speaks volumes that many in and around the company understand there are plenty of concerns about the next generation.
