Piers Harding-Rolls
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"It's a totally crazy market" – The seismic impact of the AI boom on video game hardware
The surge in demand for AI data centers has caused a significant shortage and price increase for consumer hardware components like RAM and GPUs. This impacts gaming hardware manufacturers such as Nintendo, Valve, and Sony, leading to higher prices for consoles like the PlayStation 5 and potentially delaying new hardware launches like the Steam Machine. The increased costs also affect game development studios by raising the price of essential development hardware.
Why Xbox took Call of Duty out of Game Pass
Xbox has announced that Call of Duty titles will now be added to Game Pass Ultimate approximately one year after launch, rather than at launch. Data from Newzoo suggests that while Call of Duty: Black Ops 6 saw a temporary increase in Xbox engagement, it did not translate to sustained sales, indicating that Game Pass may be cannibalizing premium purchases.
Analysts say Xbox Game Pass price cut is 'not surprising at all' since Call of Duty's addition to the service 'did not lead to a significant increase in Xbox console sales or even subscriptions'
Industry analysts believe the recent price cut for Xbox Game Pass and the delay of new Call of Duty titles from day-one releases were expected moves. Experts suggest that the inclusion of Call of Duty did not significantly boost Xbox console sales or Game Pass subscriptions, and that Microsoft was losing potential premium sales revenue. The price reduction is seen as a balanced solution that could help subscriber numbers grow.
Game Pass Might Lose More Day One Game Releases Than Call of Duty, Says Analyst
Industry analyst Piers Harding-Rolls suggests that Microsoft's decision to remove Call of Duty from day-one Game Pass releases is a strategic move to increase revenue through staggered releases and sales on other platforms. This shift may indicate a broader trend of windowing other first-party titles on the subscription service. Microsoft is also reportedly exploring new Game Pass tiers, including a cheaper option focused on first-party games with cloud gaming limits and a customizable "pick your own plan" model.
Call of Duty Franchise’s Older Entries Are Coming to Game Pass This Year – Rumor
A rumor suggests that Microsoft plans to bring older Call of Duty titles to the Game Pass subscription service later this year, expanding its library beyond recent releases. This move comes as Microsoft adjusts its strategy for the franchise's inclusion on the service, following a price hike for Game Pass. Industry analysts also commented on potential new subscription tiers and the impact of day-one releases on revenue and retention.
Xbox Game Pass Could Lose Other Day-One New Releases Beyond Call Of Duty, Expert Says
Microsoft has announced changes to Xbox Game Pass, including a price reduction and the removal of new Call of Duty titles from day-one releases. Analyst Piers Harding-Rolls suggests that other first-party games might also be "windowed" from day-one launches to generate more revenue. Future plans for Game Pass aim for increased flexibility, potentially including customizable subscription tiers.
Ubisoft reportedly cancels life-simulator project Alterra
Ubisoft has reportedly cancelled its life simulator project, codenamed Alterra, with affected employees being reassigned to other projects. The game, described as an Animal Crossing-style title with voxel creation, had been in development for about 18 months at Ubisoft Montréal. This cancellation follows Ubisoft's recent introduction of a Creative House structure and other cost-cutting measures, including the discontinuation of three other games and studio closures.
"Not surprising at all" - analysts see Xbox Game Pass price cut as inevitable shift that will drive subscription growth in 2026
Analysts believe Microsoft's decision to cut the price of Xbox Game Pass and remove Call of Duty as a day-one offering was an expected move due to the franchise's limited impact on subscription growth. While opinions differ on the effect on Call of Duty's revenue, the price reduction is seen as a positive step that should help subscriber numbers grow. This strategic shift is viewed as commercial pragmatism rather than a fundamental change in Microsoft's approach to its gaming services.
PS5, PS5 Pro’s Price Hikes Might Lead to PS6 Costing 50 Percent More, Say Analysts
Industry analysts predict that recent price hikes for the PlayStation 5 and PlayStation 5 Pro could lead to the PlayStation 6 costing up to 50 percent more. Factors such as US economic policies, rising component costs, and market volatility are cited as reasons for the anticipated increase, potentially normalizing $1,000 console prices.
Xbox Series X/S and Nintendo Switch 2 Could Follow PS5 and Increase Prices, Says Analyst
Sony has increased the prices of the PlayStation 5 and PlayStation 5 Pro due to rising component costs, a move that analyst Piers Harding-Rolls of Ampere Analysis suggests Microsoft and Nintendo may follow for their respective consoles. These price hikes, coupled with inflation, could negatively impact new game sales, despite anticipated major releases like Grand Theft Auto 6.
After PS5 price hike, Xbox and Nintendo could be next
Analysts suggest that Sony's recent PlayStation 5 price increase may signal a broader trend across the industry due to rising component costs, inflation, and supply shortages. It would not be surprising if Microsoft and Nintendo also implement similar price adjustments for their consoles in the near future.
"It wouldn't be a surprise if Microsoft and Nintendo followed suit" - Analyst reacts to PlayStation's shock price rise as industry braces for more uncertainty
Sony has announced a significant price increase for the PlayStation 5, citing global economic pressures and component cost increases. Industry analyst Piers Harding-Rolls suggests Microsoft and Nintendo may follow suit. This price hike comes at an awkward time with the highly anticipated Grand Theft Auto 6 expected later this year.
The PS5 Price Hike Was Inevitable, But What Comes Next?
Sony has announced a second price increase for the PlayStation 5, citing global economic pressures and increased component costs. Industry analysts like Mat Piscatella and Piers Harding-Rolls suggest these price hikes are likely to continue through 2030 and may push consumers towards cheaper gaming options like mobile or PC. Competitors like Microsoft and Nintendo are also facing similar pressures, with Nintendo not ruling out a price increase for the upcoming Switch 2.
Analyst says Epic Games layoffs send a clear signal: 'This will not get any easier'
Epic Games CEO Tim Sweeney announced over 1,000 layoffs due to a decline in Fortnite engagement since 2025, leading to the company spending more than it earns. Analysts suggest this signals a challenging period for the entire industry, exacerbated by inflation and increased competition from platforms like Roblox. The company is also shutting down several Fortnite game modes, including Rocket Racing and Festival Battle Stage.
