Rising Component Costs Could Force Console Makers to Scale Back Next-Gen Ambitions
November 8, 2026
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.
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