The console market is facing a severe price squeeze that threatens to push next-generation hardware beyond what most gamers can afford. Rising costs for memory and storage, driven by AI datacenter demand and post-pandemic supply chain issues, have already pushed current models to $800 and $900. This financial pressure creates a critical inflection point for the industry, as developers and publishers must decide whether to continue supporting a platform that is becoming increasingly expensive for consumers.
Publisher confidence in console viability despite rising hardware costs
CD Projekt co-CEO Michal Nowakowski addressed these market tensions directly, asserting that the console business model remains viable despite the headwinds. He told The Games Business that the company is not worried about the commercial side of the hardware sector. Nowakowski stated, "We're not worried about the commercial side of it. I think consoles are here to stay. I'm a big believer." This stance comes as the industry navigates a period where hardware margins are thin and consumer spending is tight.
The current generation of consoles launched during the global pandemic, which hampered supply chains and limited initial availability. Since then, the demand for high-bandwidth memory and storage has surged due to the rapid expansion of AI datacenters. This competition for components has driven up the bill of materials for new hardware. As a result, the Xbox Series X has seen price increases reaching $800, while the PlayStation 5 Pro has been priced at $900. These prices mark a notable increase compared to the standard costs of earlier console generations.
Looking ahead, rumors suggest that next-generation consoles, specifically the PS6 and Microsoft's Project Helix, may be delayed to avoid launching with a manufacturer's suggested retail price exceeding $1,000. Some speculation indicates that Microsoft might seek help from OEM partners like ASUS to produce the Gen 10 Xbox. Meanwhile, CD Projekt is focusing on its software portfolio, with The Witcher 3 Remastered scheduled for release on September 29 as a free update. We've been tracking Consoles closely — see our earlier coverage on Armatus Launches January 7, 2027 on.
The industry is currently balancing the high costs of next-gen hardware against the need to maintain a sustainable user base. While component costs remain elevated, the potential delay of Gen 10 consoles suggests a strategic pause to manage pricing expectations. CD Projekt's confidence in the platform indicates that major publishers still view consoles as a primary distribution channel. Upcoming months will determine if hardware makers can stabilize costs or if the market will remain divided across various price levels.
Source: CD Projekt CEO, TweakTown
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