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The next Xbox could cost $1,800. Here’s why

Gamers looking to buy a new Xbox or PlayStation in the coming months are already bracing for higher prices, as surging demand from AI companies drives up the cost of memory chips. But as Microsoft and Sony work on their next-generation consoles, the recent price hikes on existing devices could look small by comparison. A reported internal projection at Microsoft for Project Helix, the code name…

The next Xbox could cost $1,800. Here’s why

Microsoft and Sony are planning to launch their next-generation consoles, with estimates suggesting these systems could cost consumers between $1,200 and $1,800. This high price could be attributed to a surge in demand for memory chips driven by artificial intelligence companies. The steep price hike from existing systems is expected to pale in comparison.

Microsoft's internal projection for Project Helix, the code name for the upcoming Xbox, hints that the cost might decrease if the company decides to subsidize the hardware. Sony, too, may face a significant price increase for the PlayStation 6, with reports suggesting a price tag of over $1,000. Neither company has publicly commented on the expected retail prices of their next-generation consoles.

The timing of these potentially high-priced consoles could pose a challenge for the video game industry, as more players are opting for mobile and PC gaming. A recent study found that 44% of gamers consider mobile their primary gaming platform, while 21% prefer PCs. The highly anticipated Grand Theft Auto VI, set to release next month, may keep players engaged with current-generation consoles for the time being.

Microsoft has reportedly encouraged Xbox owners to trade in unused consoles at Best Buy to address manufacturing shortages. The trade-in initiative was introduced in June alongside price increases for new systems. While core gamers, likely to purchase a next-generation system regardless of cost, may complete the game quickly, casual players might delay upgrading.

Both Sony and Microsoft have not announced an official launch date for their next-generation consoles. Sony initially expected the PS6 to arrive in the next holiday season, though it might be delayed until 2029. Microsoft's next Xbox is expected to launch in 2028. Sony aims to match the current generation's sales numbers with the PS6, which has sold over 95 million units since launch.

However, the PS5 has been hampered by higher costs, and console prices have been difficult to reduce due to surging memory prices. Microsoft's ambitious goals, set by Xbox CEO Asha Sharma, target reaching more than 1 billion people per day, 10 times the company's current daily active user base.

Written by urgent.news from Fast Company's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

Read the original at fastcompany.com →

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