Ars analysis shows missing price cuts are costing console consumers hundreds of dollars.
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Today’s game consoles are historically overpriced
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That's fine, like I said it's good we have choices. I get it, I used to want to have all my DRM-free GOG installers backed up or whatever.
But I've realized I don't actually go back to play all these games, and indeed can barely finish more than a fraction of the new games I'd like to play. So for me the value of having root access while playing is effectively 0, and given my limited time to play, it's an easy choice to go with my Xbox that requires no config, can save state multiple games at once, etc. And the sub is only needed these days for the minority of people who play non-F2P multiplayer games - annoying if you're in that boat but doesn't apply to me.
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The Switch is still being developed for and its chipset is eight years old, and wasn't even modern at the time. If it were a priority and made a target spec for publishers to hit, someone absolutely could put an an x64 equivalent home console without the overhead of the specialized controllers, screen, or cartridges for under $200. There's mini-PCs of that horsepower constantly for sell on Amazon ~$100.
The issue is getting publishers to buy-in to support for the target spec, and a market willing to purchase a cheap no-frills console with lower graphical fidelity.
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The number of people buying 4k releases is an order of magnitude smaller than the number who were buying VHS and DVDs 25 years ago.
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The next great depression will be the perfect chance to catch up on my Steam backlog
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I see a possibility which seems just as likely, but that you have not discussed. That true inflation is higher than states worldwide admit. You should map console prices against house prices.
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So true. I once worked with a bunch of traders and asked one of them one: "Why is that stock valued at that price when clearly the fundamentals don't support that view?"
"Lauren", he said, "something is worth whatever somebody else will pay for it"
That was a true life lesson for me
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Personally, my games collection is growing faster than I can consume it due to the various sources of free and subscription games (E.g. Amazon and Epic). It's hard to justify buying games when I have over 100 unconsumed (and often unplayed) games. And that's after curation: I only include games I want to play.
I feel like this change is relatively new: While there was a thriving freeware ecosystem 25 years ago, giveaways of previously commercial games were far less common (though not non-existent).
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Interesting to see the numbers.
Overall, they start low, and end low nowadays. Consoles in the past were really sorta pushing the envelope, right? They used at least semi-custom chips (even the PS3 Cell architecture was “weird,” Sony didn’t invent it or anything, but it was different from typical PCs at the time, so presumably their R&D costs were reflected in the release price).
Modern consoles are just little PCs, they have essentially no novel R&D. The early adopter tax pays for… somebody at Microsoft to go hunt around on whatever the corporate equivalent of Newegg is, and then somebody has to figure out the case.
I mean that’s a flip exaggeration, but these aren’t the massive engineering projects that old consoles were.
Overall, they start low, and end low nowadays. Consoles in the past were really sorta pushing the envelope, right? They used at least semi-custom chips (even the PS3 Cell architecture was “weird,” Sony didn’t invent it or anything, but it was different from typical PCs at the time, so presumably their R&D costs were reflected in the release price).
Modern consoles are just little PCs, they have essentially no novel R&D. The early adopter tax pays for… somebody at Microsoft to go hunt around on whatever the corporate equivalent of Newegg is, and then somebody has to figure out the case.
I mean that’s a flip exaggeration, but these aren’t the massive engineering projects that old consoles were.
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...i'd like to see console units (annual sales + installed base) plotted by virtue of comparison, too: i hypothesise that the current generation might comprise significantly fewer units than prior modern generations, which affects not only economies of scale but also software revenue, which have historically subsidised hardware costs...
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There are ways to make the higher prices worth it. Sadly they arent taking advantage of them. Its more difficult to just buy a hard copy of a game. You now just download it. And we know how that goes. Its not really yours. Games are loaded with the stupid pay to win formula or "extras."
I dont want a custom jersey, I just want to play hockey damn it!!!! What I thought was a game changer when I heard about it, they've ruined. Being able to buy a game, download to xbox, and then play it on my xbox in livingroom, or computer in the den, or my tv in bedroom, wow!!!! What a awesome feature. But stupid microsoft has locked it all down. Only some games can this be done, AND you have to have the highest tier stupid ass gamepass to do it. WTF! I just bought a game, let me play it anywhere. At least on home network. I dont want a game subscription. I want to buy a game and be done. I just sold my xbox x last month. Way to go microsoft.
I dont want a custom jersey, I just want to play hockey damn it!!!! What I thought was a game changer when I heard about it, they've ruined. Being able to buy a game, download to xbox, and then play it on my xbox in livingroom, or computer in the den, or my tv in bedroom, wow!!!! What a awesome feature. But stupid microsoft has locked it all down. Only some games can this be done, AND you have to have the highest tier stupid ass gamepass to do it. WTF! I just bought a game, let me play it anywhere. At least on home network. I dont want a game subscription. I want to buy a game and be done. I just sold my xbox x last month. Way to go microsoft.
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I also don't care what platform people like to game on, but I'm curious to ask - how is the experience so much better on consoles ? (honest question, haven't touched one since the PS2 haha). PC gaming has gotten super streamlined - download a launcher, log in, buy & download a game, click play - 99% of the time that's it with no troubleshooting.
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I think one advantage is that the console is guaranteed to "run" the title, as long as you are happy with 30 fps and a PC-equivalent "low" graphics preset. There is simply no console that can run modern games at 4K maxed out graphics 60+ fps or it would cost as much as a high end gaming PC.
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- Consoles are playable from my couch/armchair.
- The current & prior generation let me pick up right from where I was playing last time, regardless of whether or not the game had a save point where I am (in Xbox Series' case, for multiple games!).
- I don't have to wait for Windows or game updates to install before playing, since it can update itself overnight.
- I have a physical token so I can lend games out, and don't have to worry about Valve taking ownership away from me.
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Yes but as Kyle notes this trend predates tariff otaku. I suppose it's possible that companies have simply been pricing in the possible return of tariff otaku the past four years but even if it was on their minds it feels like a reach because I don't think anyone really expected it to get this chaotic this fast.
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It seems like every time I touch my PS5 it has updates it wants to download before I can do anything.
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These are not specifically console pros or PC cons. A PC that is truly under your control (rather than Microsoft's) will not run updates without your consent and reboot whenever it wants. Steam is not the only storefront on PC. Also, you can control a PC from a couch using the Steam Big Picture mode and a gamepad, and/or use a Linux desktop environment optimized for TVs. The PC downsides that you mention are Windows downsides first and foremost.
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The problem is that it makes me consent before running them, when I want them to automatically install when I'm not using the device and be ready when I come back to play. Even if you leave the computer up and Steam running it won't always install updates for you, it'll often delay them for up to a week.
DRM-free stores do not have every game I want to play.
You can't turn the PC on with a gamepad, or install non-Steam games.
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"BLM's CPI calculator" should read "BLS' CPI calculator" instead. It's the Bureau of Labor Statistics (BLS) that tracks CPI. The Bureau of Land Management (BLM) is a very different agency.
But otherwise it's a very interesting article. Funny that the consoles I'm most interested in (PS5 Pro) and Xbox Series S are both more expensive now than at launch.
But otherwise it's a very interesting article. Funny that the consoles I'm most interested in (PS5 Pro) and Xbox Series S are both more expensive now than at launch.
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I am really hoping that the several beers I've had are the reason my bowels and bladder are suddenly going into overdrive and absolutely not that this post is the sort of thing that makes someone with my background look around for Black Swans.
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It doesn't? GOG is having a labor day sale, and I picked up Privateer, Privateer II, Wing Commander III, and Star Trek Bridge Commander for a couple of bucks...
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Other way around. Modern consoles are cutting-edge PCs. Older consoles were older CPUs with some custom graphics chips and software workarounds, with much less RAM & peripherals.
Consider: the Atari 2600, NES, and Commodore 64 all used the same MOS-6502 CPU. Technically the TurboGrafx-16 used a faster version of the same CPU, and the SNES used a 16-bit extended version of that same CPU.
Similarly, the Sega Genesis, Neo Geo, Apple Macintosh, and Atari Jaguar all used versions of the Motorola 68k CPU.
In all of these cases, the difference involved the graphics and other chips and RAM and such. Atari's TIA and Nintendo's PPU are the primary difference between the 2600 and NES, for example. But even with Nintendo, much of the extended capabilities came from modular add-ons in the cartridge or software stuff like SNES's Mode 7.
The PS2/Xbox/Gamecube generation was the first time consoles rivalled PCs, which makes sense since Gamecube used the same PowerPC CPU as contemporary Macs. In the next generation, I remember building a new PC in 2006 after getting a new job and laughing at how similar the specs were to a PS3, and so I bought a Wii and used my PC for more serious gaming*.
My point is, in the 20th century, consoles used older, cheaper components with the goal of just making something that was fun and looked good. "Cutting edge graphics" were mostly a marketing thing. It wasn't until the 21st century and RISC chips that were cheaper and more energy-efficient than their x86 counterparts that consoles began to resemble living room computers.
*and met a cute gamer girl that way, not that things worked out. Oddly enough we both brought our PS2 games into the relationship as separately owned, regardless of whose PS2 we used, if this helps add color to that video game generation
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Games are sparse? There's been a deluge of games.
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You don't need to go all out and buy a Pro. You can get a base PS5 new or used.
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There are a bunch of vectors keeping the price from dropping.
1 Hardware supply: GPU fab output went to Crypto and now to AI. So not too much bargaining power like before.
2 Software supply: some games are played forever, like Minecraft, Fortnite, PubG, less money to be made from selling games for console sellers per each.
3 User demand: Gamers get older and become richer. Less a kids game (as they like their mobile devices & roblox, clash of clans). Gamers buy more for themselves. Not the parent for the kid anymore. So demand curve is less price sensitive.
1 Hardware supply: GPU fab output went to Crypto and now to AI. So not too much bargaining power like before.
2 Software supply: some games are played forever, like Minecraft, Fortnite, PubG, less money to be made from selling games for console sellers per each.
3 User demand: Gamers get older and become richer. Less a kids game (as they like their mobile devices & roblox, clash of clans). Gamers buy more for themselves. Not the parent for the kid anymore. So demand curve is less price sensitive.
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That's PC games. And if you pay attention even there the price for digital games doesn't go down as they get older. They just hold sales more often than on consoles.
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I mean ... you can plug any controller in your PC and do the same thing. The save thing is really interesting. Updates are pretty much same regardless of platform, they can all be set to run automatically in the night. Being able to lend out the disc is cool, but ultimately it's all downloads, so I don't see much of a difference there.
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Do you really want to know?
It's because we are living through the beginning of the end of an Empire in Decline.
As knowledge is lost, fewer people are born, and bureaucracy and administration make everything top-heavy, prices rise as resource scarcity increases.
Video games are an extremely fast-moving industry. You are seeing it here first. In a decade or two you will see this trend everywhere.
The good times are ending. And they will not come back until the rise of the next empire. Historically this takes hundreds of years. The last time it happened was the Fall of the Roman Empire and the Dark Ages.
It's because we are living through the beginning of the end of an Empire in Decline.
As knowledge is lost, fewer people are born, and bureaucracy and administration make everything top-heavy, prices rise as resource scarcity increases.
Video games are an extremely fast-moving industry. You are seeing it here first. In a decade or two you will see this trend everywhere.
The good times are ending. And they will not come back until the rise of the next empire. Historically this takes hundreds of years. The last time it happened was the Fall of the Roman Empire and the Dark Ages.
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I believe a big factor in why they're able to get consumers to spend more on video games than they used to in the past is simply just the demographic of who is actually buying these things has shifted. It's no longer clueless moms and dads buying a Nintendo for their kid as a toy. It is people who grew up with these things who actually know what they're buying.
Gaming is becoming a hobby driven by 30-something year old adults with disposable income and real jobs not just teenagers or 18 year olds. And for what it's worth while I lament the increase in price of everything Video gaming still remains one of the cheaper hobbies that you can get into I mean That $80 game can give you hundreds of hours of entertainment versus you know an $80 dinner for two out
I do think it's going to come to bite the industry in the butt though, because we have reached a point of diminishing returns on hardware, at least in terms of performance per dollar
Gaming is becoming a hobby driven by 30-something year old adults with disposable income and real jobs not just teenagers or 18 year olds. And for what it's worth while I lament the increase in price of everything Video gaming still remains one of the cheaper hobbies that you can get into I mean That $80 game can give you hundreds of hours of entertainment versus you know an $80 dinner for two out
I do think it's going to come to bite the industry in the butt though, because we have reached a point of diminishing returns on hardware, at least in terms of performance per dollar
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I grew up on the NES, and some Atari 2600. Those plus GB, SNES, and arcades were fun. But nowadays, it'd have to be new games. It can still have pixel art and be from a few generations past. I just don't have the time to replay a lot of the classics anymore. I certainly don't want bleeding edge" like 4K, 120 fps, and "duper textures". I don't have any hardware nor peripherals to support that anyways (so something like a PS5, or the top of the line AAA games on Steam, wouldn't cut it)
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Reading, I was just reminded the Xbox 360 was the last console I actually played and collected games for. I had a PS3 as well, in both cases purchased within their first year on the market, but honestly only really bought the PS3 as a Bluray player since at the time stand-alone Bluray decks were within a third of it's price (and didn't operate nearly as smoothly as the PS3 did, speaking of it being an actual computer, etc.)
I enjoyed the Xbox and have been pleased to discover that pretty much all the games I liked playing on it are available for Windows now.
That particular generation of consoles, the Xbox 360, PS3 and the Nintendo Gamecube/Wii, were kinda of the last "hurrah" for the PowerPC processor architecture.
I enjoyed the Xbox and have been pleased to discover that pretty much all the games I liked playing on it are available for Windows now.
That particular generation of consoles, the Xbox 360, PS3 and the Nintendo Gamecube/Wii, were kinda of the last "hurrah" for the PowerPC processor architecture.
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Yesterday's game consoles are also overpriced. Seriously, check out the prices of old hardware on eBay (US, specifically; EU seems to retain sanity). Call your parents up and have them dig out your old gadget and list it.
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Yeah, I refuse to pay extra to spread the total amount over time. Amazon sometimes offers a completely free multipayment option where they split the pre-tax amount into 3/4/5 payments (how many varies and isn't selectable), add the tax to the first payment and that's it, no fees. My old printer died this spring and I opted to get a Brother color laser and appreciated spreading it out over 5 months. I'd have let my bank account take the hit in one shot instead if there'd been a fee. Plus this was something I needed, so it was a non-optional purchase.
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Weirdly, one would expect prices of older process node chips to fall in price simply because it is older process node tech. Why wouldn't old process node manufacturing costs come down when it's no longer the hottest/greatest thing available?
I suppose for the same reason - that since Apple, Nvidia, AMD are hogging newer process nodes for AI stuff, so there's enough demand on the older nodes, more than would be expected at this point.
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It is strange that you didn't include the handheld console in your studies such as the Gameboy and DS series. These devices had a very long life, were popular and would provide additional data. Is it because the price drop of these devices were not as spectacular as the regular consoles ?
To be consistant, you should remove the Switch light from your because it is a handheld only device...
To be consistant, you should remove the Switch light from your because it is a handheld only device...
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Right this is what I was thinking, and then on top of that not only has demand outstripped supply on the newer nodes, even on the 6th and seven node nobody wants to make more fabs for decades old nodes but they keep closing the really old nodes pushing stuff like cars and embedded devices further up the process line.
There were shortages for awhile in the 20-40nm nodes even. It's crazy
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And Expedition 33 proving that AAA quality doesn't need to cost $10 quadrillion to develop and has to cost $80-100 retail.
That Balatro hook has been crazy though. $10USD on mobile and 15 on Steam? And people playing it for 1000s of hours? Sooo good.
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It's a smart business move, yes, but it sucks for the people paying (us). Also, I don't think it's uniquely a Nintendo thing anymore, and Nintendo has gotten worse about it over the years. Back in the Wii times and before, Nintendo didn't pull the same level of "keep the prices high." I know because I managed that Gamestop and we kept track of things like that so we could make recommendations to people (at least, at my store). This started at the tail-end of the Wii-U and early Switch era.
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When I had a look a while ago, I noted that by this stage of its' lifecycle the PS4 was available from retailers for two thirds of its launch price while the PS5 was actually more expensive than launch. I have the literal receipts - I got my son a PS4 slim in 2018 for £220, it launched 5 years earlier at £349. PS5 launched at £449 in 2020, the equivalent model is now £479 (with a optical drive).
This shows of course - apparently it was June 2025 where the number of active PS5 users actually overtook the PS4 active userbase for the first time. 5 years in.
This shows of course - apparently it was June 2025 where the number of active PS5 users actually overtook the PS4 active userbase for the first time. 5 years in.
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There's an interesting take on sell through home media from Matt Damon of all people here. It's a theme he's returned to over the last five years quite a bit.
In 2024 DVD also retook the lead from BD in terms of $$$ value of sales. Suspect the unit sales never dipped below BD though.
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