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There’s a sobering statement in Microsoft’s post about today’s Xbox Series X|S price increases: “Console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027.”
This concerning news comes on a day when even Apple has been forced to raise the price of various MacBook and iPad products, also citing higher memory and storage component prices.
Earlier this week, Valve confirmed the price of its highly anticipated Steam Machine system, which starts at $1,000 for its cheapest model. That base version doesn’t even include a controller in its box.
All of this surely must spell panic for the PS6, which is presumably in trouble at this point.
Rumour has it Sony had planned to launch the console in late 2027, and by all accounts it’s designed a modest machine with cost-cutting in mind. But its best laid plans are likely in tatters at this point, because even a brilliantly executed box is going to be undone by these escalating memory prices.
The company is putting a brave face on things, talking about how it intends to profit off its established install base this holiday, with software sales and PS Plus subscriptions.
But it’s also hinted that it intends to minimise the impact on its profitability by reducing the number of PS5 consoles it shifts this Christmas; presumably, the system is selling at a loss right now. I wouldn’t be surprised if it’s forced to increase prices yet again, lockstep with Microsoft.
I’m not entirely sure where it goes from here.
Presumably the PS6 is close to completion, and Sony will already have booked manufacturing slots which may be costly to renegotiate. But the appetite for next-gen consoles is already non-existent to begin with, and a $1,000+ entry point is going to kill the thing stone dead.
A reliance on cross-gen could help it to navigate the early years, while it waits to see if component prices come down. But if they’re tipped to double yet again by fall 2027, there’s really no guarantee 2028 or 2029 will be any better.
PlayStation rarely ever speaks publicly, so we’re unlikely to get any real insight into what it’s thinking and why. But I’m glad I don’t have to make a final decision on any of this, because the market just seems impossible for consumer electronics at this point.
Godspeed, Hideaki Nishino.