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Why New Game Consoles Can Cost More Than Their Predecessors

New consoles can cost more because components and market conditions change—and recommended prices can rise after launch. Dated US examples show why fair comparisons need the same model, edition and price type.
Length3 min Posted Quest giverVGSources Team
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New game consoles can cost more because component prices and other market conditions change, and manufacturers sometimes raise prices after launch. Recent US examples include higher recommended prices for PlayStation 5 and Nintendo Switch 2 models. Those announcements show that prices can rise; they do not establish a complete breakdown of what each console costs to make.

Why can a console cost more than its predecessor?

There is no single explanation that applies to every console or price change. Hardware uses components bought and assembled under changing market conditions, while manufacturers set recommended prices according to their own business decisions. In their 2026 notices, Microsoft cited memory and storage prices, Nintendo cited changing market conditions, and Sony cited continued global economic pressures. These are the companies’ explanations, not independently verified cost accounts for each model.

Modern hardware features can also make a successor different from an older system. Sony’s 2020 PS5 announcement highlighted its ultra-high-speed SSD and DualSense controller, while Microsoft’s 2026 pricing notice specifically connected rising storage and memory prices to its decision. The sources do not assign a dollar amount to those features or provide a full bill of materials.

Manufacturers can raise prices after a console launches

A console’s launch price is not necessarily its price for the rest of its life. In the US, Sony’s PS5 disc-drive model launched at a suggested $499.99 in 2020. Sony announced that its recommended price would be $649.99 effective April 2, 2026—a $150 nominal increase. This compares the two stated prices without adjusting for inflation.

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Nintendo announced that the US Switch 2 MSRP would rise from $449.99 to $499.99 on September 1, 2026. Nintendo said the decision responded to market-condition changes expected to extend over the medium to long term. A recommended price is not a guarantee of what a retailer charges or whether a particular model is in stock.

What companies said about the 2026 price changes

Company and model US price change Company’s stated reason
Microsoft Xbox models with 512 GB storage Increase of $100, effective August 1, 2026; the 2 TB model was also discontinued Xbox Wire said console storage and memory prices had increased by more than 2.5 times, and Microsoft expected another doubling by fall 2027. This is Microsoft’s statement and forecast, not an independently verified industry-wide projection. Xbox Wire, 2026
Microsoft Xbox models with 1 TB storage Increase of $150, effective August 1, 2026 Microsoft cited rising console storage and memory prices. Xbox Wire, 2026
Nintendo Switch 2 US MSRP rises from $449.99 to $499.99 on September 1, 2026 Nintendo cited changes in market conditions expected to continue over the medium to long term. Nintendo of America, 2026
Sony PS5 $649.99, effective April 2, 2026 Sony cited continued global economic pressures. Sony Interactive Entertainment, 2026
Sony PS5 Digital Edition $599.99, effective April 2, 2026 Sony cited continued global economic pressures. Sony Interactive Entertainment, 2026
Sony PS5 Pro $899.99, effective April 2, 2026 Sony cited continued global economic pressures. Sony Interactive Entertainment, 2026

Can the next generation launch at a higher price?

Yes. Comparing the same market and edition makes the point: Sony announced a US MSRP of $399.99 for PS4 in 2013, then a US launch suggested price of $499.99 for the PS5 disc-drive model in 2020. That is a $100 nominal difference between those announced prices, not an inflation-adjusted comparison and not evidence of either console’s manufacturing cost.

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Edition matters too. Sony’s 2020 US PS5 launch announcement listed the Digital Edition at $399.99 and the disc-drive model at $499.99. Comparing one edition with another, or a launch MSRP with a current price, can make a price gap look larger or smaller than it is.

How to compare console prices fairly

  • Use the same country and currency for both prices.
  • Match the exact model and edition, including disc-drive configuration and storage tier.
  • Label whether each figure is a launch MSRP, a later recommended price, or a retailer’s actual transaction price.
  • Call a direct dollar comparison nominal. To compare purchasing power, use an official inflation index and matched dates; the figures here are not inflation-adjusted.

For the original US launch figures, Sony’s 2013 PS4 announcement and 2020 PS5 announcement identify the market and prices. Sony’s 2026 notice, Nintendo of America’s Switch 2 notice, and Xbox Wire’s 2026 notice state their respective updated prices and explanations.

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What the announced prices do—and do not—show

The announcements establish the companies’ stated prices, effective dates, and explanations. They do not establish a complete manufacturing-cost history, the profit or loss on each console, or how much any one component contributed to a price change. Microsoft’s memory and storage figures are company-reported, and its further-doubling estimate is a forecast. The evidence therefore supports saying that component costs and broader market pressures can be factors—not that one cause explains every increase or every generation.

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Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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