The Era of the $500 Console is Over
The landscape of gaming hardware has changed dramatically, and it’s not for the better. If you’re looking to grab a new console or PC, brace yourself; prices have shot up, and it’s a tough time to be a gamer. Let’s break down how we’ve arrived at this point.
For the last two decades, the entry point for console gaming has hovered around $500 (approx. Rs 139,000). The PlayStation and Xbox consoles from the previous three generations typically launched between $400 (approx. Rs 111,200) and $500 (approx. Rs 139,000), often seeing price drops over time thanks to slimmer models and festive sales. However, this current generation has taken a different turn. The PS5 and Xbox Series X hit the market in 2020 at that familiar $500 (approx. Rs 139,000) mark, but since then, costs have only climbed.
Initially, the COVID-19 pandemic threw a wrench in the launch plans, creating major supply chain issues that kept prices at or above the manufacturer’s suggested retail price for more than two years. As the situation began to stabilize about three years later, it seemed like we might finally see some price reductions. But then, tariffs imposed by former President Trump changed everything, forcing Sony and Microsoft to increase their prices. Even Nintendo, which usually keeps things affordable, launched the new Switch 2 at a hefty $449 (approx. Rs 124,820).
The situation worsened with the ongoing chip shortage, largely driven by the booming AI data center market. This shortage impacted essential components like memory chips, which are crucial for graphics cards, storage, and RAM. As a result, we’ve seen inflated prices on hardware, including an $899 (approx. Rs 249,920) PS5 Pro and a $749 (approx. Rs 208,220) Xbox Series X. Experts are predicting that this chip crisis could last all the way to 2028, meaning we might not see a return to the $500 (approx. Rs 139,000) console anytime soon.
Looking ahead to 2029, speculation suggests we’ll be discussing the PlayStation 6 and whatever next-gen Xbox emerges. While it’s possible that the older consoles might be discounted by then, the new generation is unlikely to stick to the beloved $500 (approx. Rs 139,000) launch price that many of us cherish. The reality is that by the time these next-gen consoles roll out, the market will have adjusted to the higher pricing, and consumers will be accustomed to paying close to $1,000 (approx. Rs 278,000) for their gaming setups.
Just take a look at how the GPU market reacted to its own supply issues. In years past, cryptocurrency mining drove up prices and created shortages, but when stock levels recovered, the next GPU generations launched at higher prices due to consumer acceptance of inflated costs. The same trend is likely to repeat itself for consoles.
While it’s uncertain if gamers will be as enthusiastic about a $1,000 (approx. Rs 278,000) console as they were in previous years, the demand is likely to persist. The Switch 2 has already set records in sales despite its higher price. On the flip side, the Steam Deck has seen a drop in interest following significant price hikes, largely because better and cheaper alternatives have emerged.
Unfortunately, it doesn’t seem like there will be much competition to keep the prices of next-gen consoles in check. Sony has made it clear that they won’t be subsidizing the PS6. Meanwhile, the future of Xbox remains unclear, though indications suggest that Project Helix may lean more towards a PC-like setup, which won’t come cheap. With rising inflation affecting the economy, and with the adjusted pricing of older consoles in today’s market reflecting that trend, it seems the days of budget-friendly gaming consoles are behind us.
The era of the $500 (approx. Rs 139,000) console appears to be a thing of the past, and whether we like it or not, we’re facing a new reality in gaming hardware costs.
Note: PKR figures are approximate, based on a rate of Rs 278.00 per USD. Exchange rates fluctuate — please check the latest dollar rate for exact pricing.