Updated
Updated · The New York Times · Jun 17
Microsoft, Sony and Nintendo Lift Console Prices by Up to $100 as AI and Tariffs Bite
Updated
Updated · The New York Times · Jun 17

Microsoft, Sony and Nintendo Lift Console Prices by Up to $100 as AI and Tariffs Bite

1 articles · Updated · The New York Times · Jun 17

Summary

  • $100 price hikes have reset console pricing, with Microsoft lifting the Xbox Series X to $600 from $500 and the Series S to $380 from $300, while Sony added $50 to PS5 models and Nintendo raised Switch prices.
  • Tariffs triggered the first wave in 2025 because consoles made in China and Taiwan were hit hard without the exemptions some other electronics won, and AI spending then drove up RAM, SSD and processor costs further.
  • Manufacturing relief that once lowered console costs has faded as Moore's Law economics broke down around 2014, while pandemic-era demand kept this generation's prices from falling before newer cost pressures arrived.
  • Analysts expect memory, storage and silicon prices to stay high through at least 2026, raising the risk of shortages, underproduction and even more price increases if major game launches such as Grand Theft Auto VI boost demand.
  • Next-generation hardware could be pricier still: Sony has not finalized PlayStation 6 timing or pricing, Xbox is still reviewing its Project Helix strategy, and premium future consoles may top $1,000.

Insights

As AI's hunger for chips makes gaming a luxury, must consoles evolve into high-end subscription services to survive?
The AI boom is devouring computer components. What essential consumer technology will be the next to become unaffordable?
With Moore's Law dead and costs soaring, is the era of affordable high-performance electronics for consumers now over?