Key Takeaways
1. Price hikes for consoles that have been on the market for four years or more, like the PS5, Xbox, and Switch, are surprising and frustrating for consumers.
2. Historically, console prices typically drop over 50% after three years, but current consoles like the PS5 and Switch remain close to their original prices.
3. The PS5 Digital’s new price of $500 exceeds the inflation-adjusted launch price, indicating a deviation from traditional pricing trends.
4. Competing consoles are also facing similar pricing issues, with expected future prices significantly higher than adjusted estimates.
5. Factors such as component shortages and rising manufacturing costs have kept console prices stable, but buyers continue to purchase them despite the increases.
Price hikes for consoles that have been around for four years or more are annoying for consumers. The PS5 is the latest to see a $50 bump in price in the U.S. With Xbox and Switch systems also becoming more expensive, an article from Ars Technica talks about how strange these increasing prices are.
Price Comparisons Over Time
The article takes a look at price trends of consoles, reaching back to 1977 and adjusting for inflation. Typically, most systems see their prices drop by more than 50% after three years on the market. However, the PS5, Xbox Series X|S, and Switch are still almost as pricey, if not more, than when they first launched.
Surprising Estimates
While the overall rise in good prices skews the view a bit, the estimates from Ars Technica are quite eye-opening. Following the typical trends, the PS5 Digital should be priced at $229.02, and the PS5 with a disc drive would be around $286.28. Interestingly, the new price of $500 for the digital version is actually higher than the inflation-adjusted launch MSRP of $497.17.
Competition Doesn’t Fare Better
PlayStation’s competition isn’t in a better spot either. The original non-OLED Switch is expected to cost about $116.21 in 2025, while the OLED model at $400 is nearly twice the expected price of $216.04.
Reasons Behind the Price Stability
Even though tariffs have become a topic of discussion lately, console prices held steady for a number of years during their lifecycles. The lack of earlier price drops can be attributed to component shortages and rising manufacturing costs. The chips that are used in these gaming consoles haven’t become significantly smaller or cheaper either.
Buyers Still Paying
In the end, Sony can defend the PS5 price hike as long as customers continue to buy their consoles. The Switch 2 is still at the same price for now, with Nintendo opting to increase the prices of older handhelds and accessories instead. At the same time, Microsoft is shifting its focus away from the Xbox Series X and S. With higher game prices as well, gamers are finding little hope for relief anytime soon.
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