Next-gen PlayStation and Xbox consoles may be far more expensive than expected

Valve’s new Steam Machine launched this month with a $1050 price tag, a figure that initially drew criticism but may not seem so insane by the time next-gen consoles roll out. Analysts now suggest that this pricing may be an early indication of where the next Xbox and PlayStation consoles are heading, as rising component costs continue to impact the hardware market.

As highlighted in VGC’s report, analysts from across the industry, including commentary originally published by GI.biz, warn that rising DRAM and NAND flash costs could push next‑generation consoles over the $1000 mark. Kantan Games CEO Dr. Serkan Toto described $1000 as the new “floor” for high‑end hardware built around modern memory and storage requirements.

Steam Machine’s pricing is being used as a reference point. As previously reported here at KitGuru, Valve struggled to secure “any components at any price” during development, contributing to the system’s unexpectedly high cost. With memory and SSD prices still climbing, analysts believe console makers will encounter similar pressures when designing their next‑gen systems.

Historically, consoles have been sold at a small loss, with platform holders recouping that money through first-party software sales and up to a 30% cut of third-party software sales. However, the market has shifted toward free‑to‑play and live‑service titles, reducing the certainty that hardware losses can be recovered through traditional game purchases. This makes aggressive hardware subsidisation less likely than in previous generations.

Right now, Microsoft has confirmed that it is working on Project Helix, the codename for the next Xbox. Sony is also currently working on the PlayStation 6, but we have no idea yet when either console will release. Prior reports suggested the PS6 could be delayed beyond 2028 due to component costs, but with Microsoft seems eager to move on from the Series X/S generation and is reportedly planning to launch sooner, perhaps as early as 2027.

KitGuru Says: If current component trends continue, next‑gen consoles may be far more expensive than players expect.

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