In the US, hardware sales hit 30-year lows last November, with the average price of new hardware reaching an all-time high of $439.
Last month, that figure increased to $502. Xbox recorded its worst May ever for hardware sales, while PS5 was down 58% year-on-year.
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Analysts predict that the PlayStation 6 could retail at $1,000 USD, matching the price of Valve’s Steam Machine.
This would break the long-standing tradition of affordable consoles.
Sony and Microsoft used to absorb losses on each console to keep prices down, while Nintendo used cheaper components.
The PlayStation 2 and Nintendo DS launched at £299 and £99, respectively.
Microsoft now offers “buy now, pay later” plans and interest-free financing on Xbox models, which may extend to next-gen platforms.
But some believe cloud gaming could eventually reduce the importance of hardware.
“Especially when GTA 6 is about to drive an incredible amount of interest in gaming from those who might not have modern consoles,” says Robinson.
GTA V has sold 230 million copies since 2013, and one GTA 6 trailer attracted 475 million views in 24 hours.
However, cloud gaming relies on excellent broadband, and resolution can be limited.
Hideaki Nishino, president and CEO of Sony Interactive Entertainment, has discussed a hybrid approach to consoles, similar to the Nintendo Switch.
Rumours suggest Sony might delay the PS6 launch until 2029, hoping for lower manufacturing costs.
“We do need to rethink consoles,” says Chris Dring, editor-in-chief of the Game Business. “The difference between each new generation was getting smaller from a visual perspective.
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Why do we need a PS6? We’ve not even had a Naughty Dog game yet.”
