A recent report from Ampere Analysis explores the potential market impact of pricing next-generation hardware, specifically the PlayStation 6 and the upcoming Xbox project known as Project Helix, at $1,000. The data suggests that at this price point, combined sales for both platforms could drop by as much as 38 percent compared to the current generation.
Projected Sales Impact
Current estimates from VGChartz place combined PlayStation 5 and Xbox Series X|S sales at 128.67 million units, with an expected lifetime total between 140 million and 160 million. If manufacturers opt for a $1,000 launch price, the report estimates that next-generation sales would fall between 87 million and 99 million units. Furthermore, Ampere projects that by 2031, the market for console games and services could see a $3.4 billion reduction in spending compared to a scenario where consoles launch at $700.
Potential Strategies for Sony and Microsoft
To mitigate the rising costs of memory and storage components, Ampere outlines three possible strategies for manufacturers:
- Delaying the launch: Pushing release dates beyond the end of 2028 to allow component costs to decrease while extending the lifecycle of current hardware.
- Hardware subsidies: Launching in 2028 but utilizing aggressive digital content strategies, new monetization models, and hardware subsidies to keep retail prices lower.
- Hardware innovation: Focusing on new form factors and use cases rather than prioritizing graphical improvements.
While the industry has seen consistent price increases over the last year due to supply chain shortages, Sony and Microsoft have not confirmed their pricing or final release dates for the next hardware generation. Project Helix is currently identified as a hybrid console-PC, marking a shift in design philosophy from previous Xbox iterations.