The next generation of PlayStation and Xbox consoles could end up costing far more than gamers are used to paying as analysts are warning that prices may eventually creep beyond the $1000 mark.
The prediction comes just days after Valve revealed the pricing for its new Steam Machine. The device starts at $1049 for the 512GB model and climbs to $1,349 for the 2TB version. While that’s significantly more expensive than today’s consoles, analysts believe it may offer an early glimpse at the challenges facing future gaming hardware.
The main culprit is rising component costs. Memory and storage prices have surged over the past year, driven in part by demand from AI companies. At the same time, chip costs continue to increase. Valve has already admitted that its original target price of $750 for the Steam Machine was no longer realistic.
What’s particularly interesting is that several analysts weren’t surprised by the final price. Some even expected Valve’s console-style PC to cost more.
That has sparked questions about what comes next for Sony and Microsoft. Both companies have historically been willing to subsidise console hardware and recover costs through software sales, subscriptions and services. However, analysts say even those advantages may not fully shield the next PlayStation and Xbox from mounting hardware expenses.
Nintendo has already signalled where things may be heading. It confirmed a $50 price increase for the Switch 2 from September 2026 despite its comparatively modest hardware.
That doesn’t necessarily mean a PS6 or next-generation Xbox will launch above $1000. Some analysts still expect Sony and Microsoft to keep entry-level models below that figure to maintain mass-market appeal.
One analyst went as far as suggesting that if component costs remain elevated, the next generation may not arrive until 2028. When it does, prices north of a grand could become the new reality rather than the exception.
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