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Are the $500-$550 consoles even possible anymore?

Spyxos

Member
Since Nvidia and Amd now charge dream prices for graphics cards, are the cheap console prices still possible? The next generation looks very expensive to me.

Or would Sony and Ms not be affected so much because the console parts are sold in bulk? And they have more leeway?
 
Without consider inflation, I think its totally possible, console manufacturer will just use whatever spec available that hits this price range.

Yes, they choose the components. They will continue to choose hardware that can be sold at a mass market price.

The issue is that $500 isn't going to provide anyone with a meaningful upgrade over what we have now unless we're looking at new consoles 10+ years from now.

I think prices are definitely going up significantly on Pro consoles and/or PS6/the next Xbox.
 

lh032

I cry about Xbox and hate PlayStation.
maybe, maybe not.

Dont be surprising if theres a price increased on next gen consoles, assuming if PC hardware price kept skyrocketing
 

Tokio Blues

Member
I'm going to make a comment, at the risk of everyone pointing their swords at me.

But I think the idea that consoles have to be cheap is absurd. I take cell phones for example, people tend to change a $1,300 iPhone every two 2 years and consoles are supposed to last 5 years and run at 60 fps + 4k + RT.

Launch a console at 1500 dollars that really lasts 5 years and that can be amortized over time.
 
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Devilich

Member
No absolutely not, anyone who understands our broken monetary system with its backed in inflation will realize this.
 
I'm going to make a comment, at the risk of everyone pointing their swords at me.

But I think the idea that consoles have to be cheap is absurd. I take cell phones for example, people tend to change a $1,300 iPhone every two 2 years and consoles are supposed to last 5 years and run at 60 fps + 4k + RT.

Launch a console at 1500 dollars that really lasts 5 years and that can be amortized over time.

I largely agree with this. The idea that consoles can't be more than $500 is silly to me. The prices on literally everything else has gone way up. Why not gaming hardware?
 

Gaiff

SBI’s Resident Gaslighter
By the time of the PS6? Probably not. Inflation is a real thing. We'll probably be at around $599 by 2027.
 

BennyBlanco

aka IMurRIVAL69
I'm going to make a comment, at the risk of everyone pointing their swords at me.

But I think the idea that consoles have to be cheap is absurd. I take cell phones for example, people tend to change a $1,300 iPhone every two 2 years and consoles are supposed to last 5 years and run at 60 fps + 4k + RT.

Launch a console at 1500 dollars that really lasts 5 years and that can be amortized over time.

Smartphones are a necessity now and many people finance them. Nobody is gonna finance their kids a $1500 console. This is how we wind up in cloud gaming hell.
 

Tokio Blues

Member
Smartphones are a necessity now and many people finance them. Nobody is gonna finance their kids a $1500 console. This is how we wind up in cloud gaming hell.


Yes and no... how much of the capacity of your cellphone do you use? do you really need a LEICA camera a 200mp on each? Most of the people just use it for sending texts and posting on social media.

Kids also use iphones.
 
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Moses85

Member
Sure, Nintendo will sell a Switch 2 with Xbox One Specs (Launch Version) and Nintendo Fanboys will buy it.
 

XesqueVara

Member
If they keep advancing nodes on Consoles It's zero chance that it stays on this price tag, Like 3nm wafer prices is $20k+, and that shit isn't going down, you just need to see nvidia mantaing the same margins since pascal and increasing the prices instead.
 
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MarkMe2525

Member
Can we not have opinions here? I'm just sharing how I see things going.
You made a declarative statement which is typically not associated with an opinion. I have no issue with educated assumptions when attempting to predict the future. I was poking fun at the manner in which you stated your opinion, more specifically the assertive language used.

In saying that, your assumption may turn out to be true and certain trends tend to favor that outcome. Now there are other trends in the tech industry that point to this not being the case, specifically the capital investments to find ways to overcome limitations. Hardware manufactures have continuously found unique ways to continue the march of progress, over and over again.

Edit: let me be more accurate. Declarative statements often do not inform a reader that what is being stated is just an opinion or educated guess.
 
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Loomy

Thinks Microaggressions are Real
Sony and Microsoft aren't paying what you're paying what you're paying for 1 off the shelf GPU when they put in a 20 million units order of custom designed APUs. Plus they will always subsidize the hardware so people can afford to buy them and spend money on software.
 
You made a declarative statement which is typically not associated with an opinion. I have no issue with educated assumptions when attempting to predict the future. I was poking fun at the manner in which you stated your opinion, more specifically the assertive language used.

In saying that, your assumption may turn out to be true and certain trends tend to favor that outcome. Now there are other trends in the tech industry that point to this not being the case, specifically the capital investments to find ways to overcome limitations. Hardware manufactures have continuously found unique ways to continue the march of progress, over and over again.

Edit: let me be more accurate. Declarative statements often do not inform a reader that what is being stated is just an opinion or educated guess.

We're on a discussion board. I don't think we need to preface every statement we make with "In my opinion,". We're all obviously just sharing our opinions.

But no worries. I agree that my original comment had an assertive tone.
 
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I'm going to make a comment, at the risk of everyone pointing their swords at me.

But I think the idea that consoles have to be cheap is absurd. I take cell phones for example, people tend to change a $1,300 iPhone every two 2 years and consoles are supposed to last 5 years and run at 60 fps + 4k + RT.

Launch a console at 1500 dollars that really lasts 5 years and that can be amortized over time.
The business model for consoles has always been to mass sell the console and make $$$ with software and subscriptions, right? A $1500 console doesn't make much sense in that regard.
 

diffusionx

Gold Member
I'm going to make a comment, at the risk of everyone pointing their swords at me.

But I think the idea that consoles have to be cheap is absurd. I take cell phones for example, people tend to change a $1,300 iPhone every two 2 years and consoles are supposed to last 5 years and run at 60 fps + 4k + RT.

Launch a console at 1500 dollars that really lasts 5 years and that can be amortized over time.

The whole point of consoles is that they are cheap, mainstream, affordable boxes to play the newest games. They are not high-end devices, never were - they are not "supposed" to run at 60fps + 4K + RT. They've also gone up in price significantly over the years, not so much in the initial price (MUH INFLASHUN) but the fact that they never go down in price. You could buy a PS2 at half-off within 18 months of release, now they stay at MSRP more or less the whole generation. In fact, this generation, they have gone up in price since release. I just don't see why people who don't think that consoles are powerful enough OR expensive enough go and spend more money on a more powerful machine. It's called a PC and it's been around a long time. It will give you exactly the experience you want at the price you are willing to pay for.

Also: most people, even iPhone buyers, are not buying $1300 phones. That is the ceiling price, most are much cheaper. And most people aren't buying iPhones either.
 

Spyxos

Member
I'm going to make a comment, at the risk of everyone pointing their swords at me.

But I think the idea that consoles have to be cheap is absurd. I take cell phones for example, people tend to change a $1,300 iPhone every two 2 years and consoles are supposed to last 5 years and run at 60 fps + 4k + RT.

Launch a console at 1500 dollars that really lasts 5 years and that can be amortized over time.
For many people, their cell phones are their life. They can't live without them. They work with them. They're their Tik Tok and Instagram machines. Nobody needs a console like that. Games are hobbies. People aren't willing to spend that much.
 
They are not high-end devices, never were - they are not "supposed" to run at 60fps + 4K + RT.

Judging by the internet's response to pretty much every game release nowadays, what these consoles are "supposed" to do does not match with consumer expectations of what they should do. There's endless bitching about low resolutions or 30fps or lack of RT on consoles with pretty much every new game release.

Which isn't fair, but it is what it is I guess.
 
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SlimySnake

Flashless at the Golden Globes
Since Nvidia and Amd now charge dream prices for graphics cards, are the cheap console prices still possible? The next generation looks very expensive to me.

Or would Sony and Ms not be affected so much because the console parts are sold in bulk? And they have more leeway?
Next gen will be $599. Pro consoles next year will also be $599.

These chips have gotten expensive but these GPU manufacturers are still posting record profits. They care more about their bottomline than pushing their hardware so they can make money off software and subscriptions like hardware manufacturers do. It's a completely different business model.
 

MarkMe2525

Member
I largely agree with this. The idea that consoles can't be more than $500 is silly to me. The prices on literally everything else has gone way up. Why not gaming hardware?
When looking at the typical phone that is purchased outright at MSRP, they are by far skewed towards the low end. Almost every high end phone sold (in the US) has a financing agreement attached. Furthermore, these financing agreements are attached to preexisting cell phone bills that customers are already paying. The line drawn from $1,000 phones to a $1,000 gaming console is not a clear as it may look at first glance.

Manufactures would have to be extremely deligent in the effort to change gamers, or in most/many cases, parents spending habits. I personally doubt that they would be able to make that transition and continue to move the volume of units that they currently do. This would cause a dramatic drop in these platform holders profits as the money is not made on the box, but in the software sold for said box.
 
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diffusionx

Gold Member
Judging by the internet's response to pretty much every game release nowadays, what these consoles are "supposed" to do does not match with consumer expectations of what they should do. There's endless bitching about low resolutions or 30fps or lack of RT on consoles with pretty much every new game release.

Which isn't fair, but it is what it is I guess.
What is the "internet", a bunch of nerds on forums and reddit that spend a ton of money on games and want an excuse to spend more? Probably not a good idea to target that market if you are trying to sell 100 million consoles. If you are selling a $1600 GPU, then yes it is fine...

edit: Sony mentioned once that PS4 Pro sales were around 20% of total PS4 sales. They never reported it officially so I have a feeling it wasn't even that, but considering that the Pro was literally just a more powerful PS4, that should tell you what percentage of people care about this stuff. It is very small, and a mistake to release an entire new console entirely around people who want to spend more on more powerful hardware. Most people want to spend as little as humanly possible to play new games.
 
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Tokio Blues

Member
Judging by the internet's response to pretty much every game release nowadays, what these consoles are "supposed" to do does not match with consumer expectations of what they should do. There's endless bitching about low resolutions or 30fps or lack of RT on consoles with pretty much every new game release.

Which isn't fair, but it is what it is I guess.


Totally agree with this.

I mean there is thread, in GAF, for every single game talking about shitty performance.
 

Perrott

Gold Member
I'm going to make a comment, at the risk of everyone pointing their swords at me.

But I think the idea that consoles have to be cheap is absurd. I take cell phones for example, people tend to change a $1,300 iPhone every two 2 years and consoles are supposed to last 5 years and run at 60 fps + 4k + RT.

Launch a console at 1500 dollars that really lasts 5 years and that can be amortized over time.
You don't have to spend $70 bucks regularly in order to have something meaningful to do with your new cellphone though.

That's why console hardware has to be accessible to a mass market, because the games are where things begin to get pretty expensive for the majority of the audience.
 
When looking at the typical phone that is purchased outright at MSRP, they are by far skewed towards the low end. Almost every high end phone sold (in the US) has a financing agreement attached. Furthermore, these financing agreements are attached to preexisting cell phone bills that customers are already paying. The line drawn from $1,000 phones to a $1,000 gaming console is not a clear as it may look at first glance.

Manufactures would have to be extremely deligent in the effort to change gamers, or in most/many cases, parents spending habits. I personally doubt that they would be able to make that transition and continue to move the volume of units that they currently do. This would cause a dramatic drop in these platform holders profits as the money is not made on the box, but in the software sold for said box.

I think "entry level" consoles would still have to be a thing. Obviously that's the thought process with something like the Xbox Series S.

But to see a low-end $300-$400 SKU, a mid-tier $500-$600 SKU, and a high end $800-$100 SKU would be really appealing to me, personally.
 

Nvzman

Member
I'm going to make a comment, at the risk of everyone pointing their swords at me.

But I think the idea that consoles have to be cheap is absurd. I take cell phones for example, people tend to change a $1,300 iPhone every two 2 years and consoles are supposed to last 5 years and run at 60 fps + 4k + RT.

Launch a console at 1500 dollars that really lasts 5 years and that can be amortized over time.
I already think $1000+ smartphones are fucking beyond dumb, but at least you actually do use your cell phone every day for important things like calling, texting, emailing, etc.

A game console should absolutely never be that much, it would effectively kill any reason for the average consumer to get into video games. And for those very much into video games, it would basically kill console gaming, as there would be basically no reason to buy one over just building a PC.

Consoles always, always existed to be a value option for gaming. Sony and MS both know this, as does Nintendo, they'd be legitimately stupid or off their rocker for thinking anyone is going to buy $1000+ gaming boxes.

Basically, if you want a premium gaming device, just build a computer or buy a pre-built. That's never what consoles were for, and even then the PS4 Pro/ Xbox One X were meant to be value options for 4K gaming.
 
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MarkMe2525

Member
I think "entry level" consoles would still have to be a thing. Obviously that's the thought process with something like the Xbox Series S.

But to see a low-end $300-$400 SKU, a mid-tier $500-$600 SKU, and a high end $800-$100 SKU would be really appealing to me, personally.
Back when we didn't know for sure what MS plans were with Lockhart and Scarlett; I predicted (incorrectly) that Lockhart would be the $400-$500 machine, and the Scarlett was going to be the a launch day "Pro" console at $700-$800.
 

Elios83

Member
399$ is dead as a launch price point for high end consoles, that's for sure.
They will still like to have something basic launching at 499$ but we're heading towards 599$ top SKUs.
 

Seider

Member
Playstation 5 is cheap if we consider the specs and the hardware inside the console.

8 Core Ryzen 2 CPU at 3.5 Ghz, 16 Gb GDDR6 RAM in 256 bit bus width at 488 Gb/s, GPU with 10 Tflops and NVMe at 5500 Mb/s.

You have to pay a lot more than 500$ for getting a PC with these specs.
 
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For the most part, consumers have already accepted $70 games with open arms. I don't see people waiting years for a price-drop or switching to PC if the next new PlayStation and Xbox are both $600.
 

NeonGhost

uses 'M$' - What year is it? Not 2002.
I guess you forget the 3do launched at $700 in 1993 so yeah I think the $500 console can be around for awhile still
 

kruis

Exposing the sinister cartel of retailers who allow companies to pay for advertising space.
By the time of the PS6? Probably not. Inflation is a real thing. We'll probably be at around $599 by 2027.

We should count ourselves lucky if next gen starts at $599.

Inflation in the US was 7% in 2021, 6.5% in 2022 and is currently 5%. Even if the inflation stays low at 3% up till 2027, the price of a PS5 will be $650 dollars by then. That's the optimistic scenario.

Inflation has been much, much worse in other countries in the past two years. The US' is the only country in the world that can print money and let the rest of the world pay for it, all thanks to the mighty petro dollar. Things are going to change though. More countries opt for de-dollarization by choosing to trade in other currencies. The days of printing free money are over and if the US government doesn't realize this quickly, things could go very ugly.

 

justiceiro

Marlboro: Other M
The frenzy caused by crypto/COVID is over. Prices either will go down or expect 30 mi console lifetime sales to be the norm.
 

DaGwaphics

Member
They will pick the price points they think they can work with for a mass market device and then they will build the best systems they can. The jump will be whatever technology allows.

The consoles are quite a bit different than GPUs as @ SlimySnake SlimySnake has already mentioned. With GPUs it's all about fleecing the end users out of every dollar they can, with console it is about trying to sell as many units as you can. The volume increases the profitability of the stores and the services. Selling the maximum number of units gets priority over maximizing the profit margin.
 
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