Rising component costs could force console makers to scale back next-generation performance ambitions to keep launch prices from approaching $1,000.

That pressure comes as console prices have risen rather than fallen during the current generation, amid factors including the DRAM crisis and demand driven by the AI boom.

Piers Harding-Rolls of Ampere Analysis said Sony, Microsoft, and Nintendo will need to balance graphics and performance with affordability, moderating the industry’s push for higher-end hardware.

Omdia’s James McWhirter said manufacturers could respond with more distinct hardware tiers, cheaper Nintendo Switch 2 options, better-value bundles, or launch delays while component costs remain high.

Meanwhile, Rhys Elliott of Alinea Analytics expects the PS5 to remain in use well after the PS6 arrives, with cross-generation games helping players put off upgrading.