HAYWARD, Calif. — “Next Gen consoles are too expensive, so a lot of people cannot afford to upgrade,” said one anonymous college participant.
In 2026, the rising costs of console gaming have become a primary concern among consumers, as current and previous generation consoles have seen double-digit percentage increases from their launch prices.
As of Nov. 12, PS5 consoles have reportedly jumped from their 2020 launch prices of $399.99 (Digital Edition) and $499.99 (Disc Edition) to $599.99 and $649.99, equating to a 30% to 50% increase for the Sony console. Its most expensive model, the PS5 Pro, is currently listed at $899.99.
Xbox Series X/S models show even steeper surges. The 1TB Series S, which launched at $349.99, now costs $599.99 — a 66.7% increase. Similar to the PS5 Pro, the Series X 1TB model is currently priced at $799.99.
These increases can even be seen in the nine-year-old console, the original Nintendo Switch, jumping from its initial 2017 price of $299.99 to $339.99. Within a year, the Switch 2’s launch price in 2025 of $449.99 rose to $499.99 within the first fiscal year.
These increases across all three manufacturers depart from the historical trend of decreasing prices as each console ages.
The historical price strategy for consoles can be seen in the way that Nintendo operates, treating itself as a software company that sells hardware.
Previous generations would often sell consoles at a loss, Xbox said, “Unlike phones, computers… and other consumer devices, consoles are typically not sold at a profit, but instead for less than they cost to make.”
By selling at a loss, they can increase their player base at a faster pace due to their affordable prices, which increases ongoing revenue through physical/digital game purchases and subscriptions. The low price was traditionally offset by software they made available on their machines.
However, this strategy is proving to be less effective as the increasing demand—and price—for hardware components has gone up. AI infrastructure—from higher semiconductor production needs to large data centers requiring substantial memory and storage—contributes equally to these price increases.
DRAM, an essential hardware component to a console’s performance, experienced a price increase within Sony consoles that ranges from 36% to 42% in 2026, according to TrendForce.
In June 2026, Xbox mentioned that “console storage and memory prices have increased by more than 2.5 times,” and that they expect a similar increase in 2027.
Circana’s Mat Piscatella reports that “Xbox hardware unit sales are down 33% versus a year ago in the US, while PlayStation hardware units are 25% lower.” These numbers establish an all-time low for Xbox across its 25-year history. Similarly, this would be the lowest point for Sony’s PlayStation division, as year-to-date sales for the PS5 are at their lowest point since 2013.
2027 is expected to see an even larger decline. GamesIndustry.biz Sophie McEvoy reports that this year’s game console shipments fell by 19.5% from 2025. That downturn is expected to continue, as shipments could decrease by another 27.1% across the three major current-generation consoles in 2027.
College students have modified their purchasing habits to account for the rising costs across the industry.
In a survey conducted for the Pioneer on Nov. 5, seven of the 12 college students delayed or avoided buying a console outright due to the rising costs. Those same seven students changed their purchasing habits due to increased console and subscription prices, as well as the price of a triple-A title going from $60 to $70 (or $80 in the case of Mario Kart World for the Switch 2).
Additionally, nine of the 12 students rarely or never pay full price for a video game, choosing to purchase on sale when prices are significantly discounted.
When asked what the biggest financial barrier is to gaming, students said this:
“Rising prices of games, $80 for a game is completely unreasonable.”
“For me, it’s the cost of a console. I want to get a PS5, but [I] cannot justify the price still being the same — if not higher than five years ago when a new system will be out soon.”
“Constant subscriptions to have access to online lobbies… the ‘game pass’ s***.”
Because the survey used a small, nonrandom sample, its results are not representative of the broader gaming population. The responses illustrate how some college student gamers are viewing the rising cost of entry into a form of console gaming that had remained largely accessible in the past because of its relatively low price.
Unlike previous generations, this is the first time prices have increased across all three console manufacturers, as Xbox’s Project Helix and Sony’s PS6 are reportedly expected to launch in 2028.
With the price increases occurring at a time when DRAM shortages and semiconductor manufacturing are affecting console prices, game prices and online subscription fees were mentioned quite frequently in survey responses. Manufacturers face the tug-of-war conflict between keeping consoles affordable and maintaining profitability as component prices increase.
Can console manufacturers continue increasing prices without losing potential customers? Will console gaming retain its reputation for affordability if the costs continue to rise? The future of console gaming may depend on how manufacturers balance profitability with accessibility.