Analysts warn console makers may need to rein in next-gen plans to avoid $1000 launches
Ampere, Omdia and Alinea analysts tell TechRadar Gaming that rising component costs could push Sony, Microsoft and Nintendo to moderate performance targets and extend generations.
Sony, Microsoft and Nintendo may need to moderate their performance ambitions for next-generation hardware to avoid consoles launching at $1000, industry analysts told TechRadar Gaming on November 8, 2026.
Piers Harding-Rolls of Ampere Analysis said the push for higher-end performance will need to be moderated. Omdia's James McWhirter suggested hardware stratification across tiers, including a cheaper Nintendo Switch 2 offered with more bundles, and said manufacturers may delay new hardware launches to wait out rising component costs.
Rhys Elliott of Alinea Analytics expects the PlayStation 5 to remain on sale well after the PS6 launches, arguing that the next generation will sit on top of the current one rather than replace it.
The discussion follows several years of speculation over whether the PS6 and Xbox's Project Helix could reach a $1000 price point. The article links rising console costs to an ongoing DRAM crisis and the AI boom, which have made components more expensive.
Quick answers
Why might next-gen consoles cost $1000?
Analysts point to rising component costs, tied to an ongoing DRAM crisis and the AI boom, if manufacturers keep pushing for higher-end performance.
Will the PS5 stay on sale after the PS6 launches?
Alinea Analytics' Rhys Elliott expects the PS5 to remain on sale well after the PS6 arrives, with the new generation sitting on top of the current one rather than replacing it.