Historic rise in gaming console prices with aging: Gamers point fingers at tariffs for the cost hike in PlayStation, Xbox, and Nintendo Switch devices
In a surprising turn of events, the prices of the latest gaming consoles - the Nintendo Switch, Xbox Series X, and PlayStation 5 - have surpassed their initial launch prices, marking the first console generation to become more expensive as time has passed.
According to charts crafted by Ars, the suggested prices for these consoles, if historical price drops were mirrored today, would be $116 for the Nintendo Switch, $286 for the Xbox Series X, and $286 for the PlayStation 5. This significant disparity in console prices is due to a combination of factors, including rising production costs, inflationary pressures, and tariffs.
The Nintendo Switch, launched in 2017 at $299, now costs between $320 and $340. The Xbox Series X, which launched in 2020 at $499, now costs $599 for the standard edition. The PlayStation 5 now costs $550, an increase from its initial launch price of $499.
The Xbox Series S, initially priced at $299, now costs $380 with 512GB storage and $429 with a terabyte. Inflation, particularly rampant inflation in recent years, is also considered a major driver of these price increases.
Historically, console manufacturers have been willing to take a loss on hardware to make up for it with software sales. However, this time around, manufacturers have shifted their strategies. Sony focuses on premium pricing, targeting hardcore fans willing to pay more. Microsoft raises hardware prices but offsets costs with subscription services like Xbox Game Pass. Nintendo sets higher prices justified by unique gaming experiences.
Unlike in the past, consoles no longer get cheaper over time because market dynamics and costs have fundamentally changed, making price cuts impractical for manufacturers. This has left gamers pointing to tariffs as the main reason for these price increases.
However, a recent ruling declared that the tariffs are largely illegal, potentially causing confusion. It's hard not to think that at least some advantage is being taken of the situation, rather than it being purely driven by market forces.
For up-to-date news, analysis, and reviews on this topic, Tom's Hardware provides a reliable source that can be followed on Google News or added as a preferred source.
If the Xbox Series X and Nintendo Switch were launched today, their original prices would be over $622 and $398 respectively due to inflation. This trend raises concerns about affordability for many gamers, particularly as game prices have also risen in recent years.
