Analysts warn: a price of $1000 for PS6 and Xbox Project Helix could cut sales by almost a third
- A price of $1000 could reduce sales of new consoles by almost 40%.
- Projected revenue from services will drop by $3.4 billion by 2031.
- The rise in prices is related to a shortage of components and trade conflicts.
- Microsoft is considering flexible payments and hybrid features.
Research company Ampere Analysis presented a scenario in which PlayStation 6 and Xbox Project Helix will be released in 2028 as traditional consoles with gradual improvements in specifications. With a starting price of $1000, the total sales volume over the first five years, according to their calculations, will be 38% lower than that of PlayStation 5 and Xbox Series for the same period.
Implications for the gaming services market
The decline in hardware sales will also affect revenues from games and services. According to analysts' forecasts, by 2031, revenue from the PlayStation and Xbox ecosystems could be $3.4 billion less than if the console price were $700, which means it will drop by about 12%.
Why might prices spike?
In recent years, the cost of gaming consoles has significantly increased. The rise is influenced by the global semiconductor shortage, rising component prices, and trade restrictions. A striking example is the PlayStation 5 Pro: its price has risen from $700 to $900 since its announcement.
Given current trends, some analysts believe that the $1000 mark could become a reality for the next generation if manufacturers do not find a way to reduce production costs.
Ampere Analysis offers three ways to avoid such a price. The first is to reconsider architectural solutions and make more active use of modular components. The second is to implement flexible payment schemes, including installment plans and subscriptions for hardware. The third is to expand digital distribution and move away from physical media, which could reduce production costs.
Microsoft is already showing interest in alternative options. According to preliminary data, Project Helix may combine the capabilities of PCs and consoles, and the company is exploring new payment models that allow users to pay in installments or receive a console as part of service subscriptions.
In June, Xbox division head Asha Sharma stated that the average consumer is unlikely to afford a console costing several thousand dollars. In her opinion, the industry will be forced to move to 'radically new business models' that previously seemed unlikely.
If prices really rise to $1000, companies risk losing a significant part of their audience, as well as reducing the influx of funds from digital services and online stores. Therefore, the price question becomes a key factor determining the development strategy of the console market in the coming years.
Source: StopGame
