Analyst expects Switch 2 and Xbox consoles to follow PS5 with price increases
A steep PS5 price increase has shocked PlayStation supporters in multiple regions. The same challenging economic conditions could cause similar responses from Nintendo and Microsoft. Speaking to Eurogamer, analyst Piers Harding-Rolls identifies the ongoing memory shortage and the Iran war as key factors.
Research director at Ampere Analysis, Harding-Rolls paints a bleak picture for console affordability. Most recently, the cost of the PS5 and PS5 Pro rose by $100 the US, with similar price hikes in Europe. With the changes taking effect on April 2nd, some buyers are rushing to secure a system immediately. Still, if the analyst is correct, Xbox Series X|S and Switch 2 prices are also at risk.
Harding-Rolls believes that the storage and memory shortage made the PS5 price increase inevitable. While Sony reportedly had amassed a large DRAM supply, the crisis shows no signs of easing. To protect “slim hardware margins”, he says it “wouldn’t be a surprise if Microsoft and Nintendo followed suit in the not-too-distant future.”
Prospective buyers of Xbox consoles may find that prediction difficult to believe. Microsoft already adjusted MSRPs 2025, making its PlayStation rival seem reasonable in comparison. Yet, the decision came before the component prices skyrocketed further.
How long can Nintendo avoid a Switch 2 price increase?
Nintendo has hesitated to take the same action with its newer console. A Switch 2 price increase could hamper efforts to transition gamers from the original handheld. Earlier in the year, President Shuntaro Furukawa downplayed these difficulties. Regardless, he didn’t rule out a future price hike if tariffs and short DRAM supplies persisted.
The Iran war has put more even pressure on manufacturers. With the conflict upsetting supply chains in the Middle East, those costs may eventually trickle down to console makers. Harding-Rolls thinks that these circumstances led to a higher PS5 and PS5 Pro price increase than Sony initially planned.
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