Hardware Costs
Ongoing coverage on Hardware Costs.
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Asha Sharma gives a positive response about the rising cost of tech
Xbox Executive Vice President and CEO Asha Sharma discussed the rising cost of gaming hardware and the impact of Artificial Intelligence during an interview at Gamescom. Sharma acknowledged challenges like component shortages and the need for innovation in affordability, while the article criticizes the perceived dismissal of concerns over GPU and CPU price hikes driven by AI demand.
Xbox CEO Asha Sharma once again stresses Xbox's need for affordability
Xbox CEO Asha Sharma reiterated the company's need for affordability and efficiency, particularly in light of rising component costs and recent layoffs. She emphasized that the entire industry must innovate to offer players more choices in how they purchase and play consoles. Sharma also touched upon the company's disc-to-digital program.
Xbox to focus on "efficiency and affordability alongside performance" for next-gen console amid rising hardware costs and innovations in AI
Xbox is prioritizing efficiency and affordability alongside performance for its next-generation console, acknowledging rising hardware costs and advancements in AI. Xbox boss Asha Sharma stated that the industry needs to innovate in affordability and efficiency to provide players with more choices. Sharma also discussed the company's stance on AI, emphasizing a commitment to human-crafted games and avoiding 'soulless AI slop'.
PlayStation 6 Price Could Be A Lot Higher Than Gamers Thought, But There’s Hope — Report
A report from Ampere Analysis suggests the PlayStation 6 could launch at a significantly higher price, potentially reaching $1,000, due to increased technology and hardware costs. This could lead to a 38% lower adoption rate compared to the PlayStation 5. However, Sony has options, including hardware subsidies, new revenue streams, or rethinking the console's form factor, to keep the price more accessible.
Why Are Video Game Consoles So Expensive These Days (And Games Historically Cheap)?
Video game consoles and games are becoming increasingly expensive due to a confluence of factors including tariffs, AI-driven demand for components, and a structural shift in the console business model. Experts predict hardware costs will remain high for several more years, potentially impacting future console generations like the PlayStation 6 and Project Helix.
Take-Two CEO Doesn’t Believe Rising Hardware Costs “Will Slow Us Down”
Take-Two CEO Strauss Zelnick believes rising hardware costs will not significantly impact Grand Theft Auto 6's sales, despite potential console shortages. He noted that while lower hardware prices are beneficial, the demand for the game's experience remains strong. Zelnick also highlighted the growing importance of PC as a platform for Take-Two, with PC sales now representing a substantial portion of overall revenue.
As PS5 and Xbox prices endlessly balloon, Take-Two CEO says rising console costs are good for no one, but won't…
Take-Two Interactive CEO Strauss Zelnick stated that rising console hardware costs are not beneficial for anyone, though they do not significantly hinder the company's performance. He believes that while lower hardware prices would increase adoption, Take-Two's focus is shifting towards open ecosystems like PC gaming, which now accounts for a substantial portion of their sales. Zelnick also anticipates a future where cloud streaming makes physical media and downloads less relevant.
Take-Two CEO says he expects the games industry to be in 'commercial streaming mode within 3 years,' which is great news if you hate owning things
Take-Two CEO Strauss Zelnick predicts the gaming industry will fully embrace commercial game streaming within three years, potentially increasing their user base tenfold. He believes cloud gaming will standardize, making more devices gaming-capable and mitigating concerns about rising hardware costs. However, this shift raises significant anxieties among consumers regarding game ownership and long-term access to digital media.
Don't worry about $1,000 consoles, you'll be streaming your games soon enough, reckons Take-Two CEO: "I…
Take-Two Interactive CEO Strauss Zelnick believes that low-latency game streaming will soon make expensive gaming consoles unnecessary. He predicts that within three years, streaming technology will mature enough to allow games to be played on a wider range of devices, significantly expanding the potential player base. While acknowledging the current importance of consoles, Zelnick sees streaming as a major opportunity for publishers with broadly appealing titles.
Take-Two CEO Says Streaming Could Soon Make Expensive Consoles Matter Less
Take-Two Interactive CEO Strauss Zelnick believes that while rising hardware costs are not ideal, they won't significantly impact sales, especially for anticipated titles like Grand Theft Auto 6. Zelnick also expressed strong confidence in the future of cloud streaming, predicting commercial low-latency streaming within three years, which could dramatically expand the accessible gaming market.
'AI PCs will become more important': AMD's Lisa Su remains optimistic about the market despite runaway pricing caused by *checks notes* the AI industry
Despite rising hardware costs driven by the AI industry, AMD CEO Lisa Su remains optimistic about the future importance of AI PCs for consumers. She highlighted AMD's product portfolio, including the Ryzen AI Halo, and noted record-breaking revenue driven by data center demand, even as the PC gaming segment has shrunk due to high hardware costs.
Switch 2 for $499 is a "great deal," analyst says, because "you might end up paying over $800" for the Nintendo console soon enough thanks to rising costs
An analyst from Niko Partners suggests that the upcoming Nintendo Switch 2, priced at $499, is a good deal due to rising hardware costs and potential price increases. The analyst humorously points out that prices could exceed $800 in the future, referencing memory shortages impacting component prices.
Xbox Hardware Gets Steeply Dearer in Europe and the UK — Up to €200 or £170 More
Microsoft has significantly increased the prices of its Xbox Series S and Xbox Series X consoles in Europe and the UK. The 512GB Xbox Series S now costs €499.99, a 43% increase, while the Xbox Series X sees price hikes up to €200 or £170. These adjustments are attributed to rising hardware costs, with some models seeing over a 30% price jump.
Gaming hardware costs have gone up 16% just in 2026, says US analyst, and Samsung says the AI bubble behind it all is…
US analyst Mat Piscatella reports that the average selling price of new gaming hardware in the US increased by 16% from January to June 2026, reaching $525. This trend is attributed to an AI data center-fueled chip and RAM shortage, which Samsung expects to worsen through 2027 and potentially until 2028. This shortage has already led to significant price hikes on consoles like the Xbox Series S and X, and is projected to affect the upcoming Nintendo Switch 2, potentially raising its price to $500.
Microsoft confirms increased Xbox prices in the UK and Europe
Microsoft has confirmed increased prices for Xbox consoles in the UK and Europe, with the 512GB model rising by £130/€150 and the 1TB model by £170/€200. The company cited higher storage and memory costs as the primary reason for these adjustments. This follows recent restructuring within Xbox, including layoffs and a reported decline in Xbox revenue.
PlayStation ditching physical games is "a bridge across the bad years" of high hardware costs, analyst says, but it means "casuals and youngsters will drift off to mobile, PC, and free-to-play even faster"
Industry analyst Rhys Elliott suggests Sony's decision to phase out physical PlayStation games by 2028 is a short-term strategy to offset high hardware costs. While it may improve margins during a difficult period, it risks alienating budget-conscious and younger players who might then drift to mobile, PC, or free-to-play markets.
Final Fantasy 14 On Switch 2 Is A Sobering Reminder That Storage Isn’t Cheap
Final Fantasy 14 will require 117.2GB of storage on the Nintendo Switch 2, consuming nearly half of its internal SSD. This large size is due to the inclusion of the base game and its five major expansions. The article also notes that other Square Enix games like Final Fantasy 7 Remake and Rebirth also have substantial install sizes on the Switch, and discusses the rising costs of microSD cards and other PC hardware components due to global shortages.
Amazon games boss hopes Steam Machine and consoles "pushing well over $1,000" will drive more people to cloud…
Amazon games general manager Jeffrey Gattis believes rising console and PC hardware costs will drive more players towards cloud gaming services like Amazon Luna. He notes that while cloud gaming was once a solution in search of a problem, the increasing price of dedicated hardware makes it a more attractive option for the vast number of gamers who cannot afford expensive consoles or PCs.
Xbox CEO Asha Sharma says "a healthy Xbox could weather" the current storm, but Microsoft's gaming brand…
Xbox CEO Asha Sharma stated that the recent layoffs and significant restructuring at Microsoft's gaming division were necessary due to a lack of focus on the core business and spreading resources too thin. She admitted that a healthier Xbox could have better weathered the current hardware cost crisis, and outlined plans to refocus on the flagship console, explore new business models, and expand availability on PC and mobile.
Former PlayStation boss warns Sony won't be able to replicate a key factor to the PS2's success "in the current generation" due to hardware costs
Former Sony Interactive Entertainment America president Shawn Layden believes current hardware costs and market pressures, driven by demand from AI and cryptocurrency, will prevent current-generation consoles from replicating the PlayStation 2's success through significant price drops. He highlighted that a substantial portion of the PS2's record-breaking sales came after its price was reduced to $199, a strategy he feels is no longer feasible.
