Gamers looking to buy a new Xbox or PlayStation in the coming months are already bracing for higher prices, as surging demand from AI companies drives up the cost of memory chips. But as Microsoft and Sony work on their next-generation consoles, the recent price hikes on existing devices could look small by comparison.
A reported internal projection at Microsoft for Project Helix, the code name for the company’s next Xbox, estimates that the system could cost consumers between $1,200 and $1,800. That price could come down if Microsoft decides to subsidize the hardware.
Hardware subsidies aren’t unheard of in the video game industry. Sony, for instance, took an absolute bath on the PlayStation 3 at launch, losing $307 per unit sold. Those losses ultimately cost the company $4.7 billion over the first three years of the system’s life.
Microsoft’s gaming unit is not in a position to absorb such heavy losses, especially after disappointing hardware sales in both the current and previous console generations and the layoff of thousands of employees earlier this year.
Sony, of course, could also be looking at a significant price increase for the PlayStation 6. Leaked reports suggest the system could carry a price tag of more than $1,000.
Neither Sony nor Microsoft has publicly commented on expected retail pricing for its next-generation console.
If reports of four-figure console prices prove accurate, the timing couldn’t be worse for the video game industry. A growing number of players are bypassing dedicated consoles in favor of mobile and PC gaming.
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