Traditionally, the consensus among gamers was to avoid purchasing a game console at launch. The reasoning was straightforward: launch consoles often came with a higher price tag, fewer available games, and were typically followed by more refined versions that offered enhanced features at reduced costs. However, the current gaming landscape has flipped this narrative on its head. Those who invested in consoles at launch are now looking like savvy investors, as prices for video game consoles continue to soar.
One of the most recent examples of this price surge comes from Microsoft, which has raised the cost of its Xbox lineup. The price of the premium Xbox Series X has now climbed to $649.99, reflecting an increase of $150 since its launch. Meanwhile, the smaller Xbox Series S has also seen a price adjustment, now retailing at $399.99. These price hikes are particularly striking as they follow previous increases earlier this year, and the Series X experienced additional bumps in various international markets.
To put things into perspective, when the Xbox Series X debuted in 2020, it was priced at $499—a figure that now seems like a bargain. However, Microsoft is not alone in this trend. Sony raised the prices of all PS5 models by $50 in August, while Nintendo increased the cost of the original Switch—which launched back in 2017—by $40. Even accessories aren't immune, with popular titles like Mario Kart World now costing $80.
The primary reason behind these steep price hikes is not particularly opaque, despite companies often masking it with phrases like “changes in the macroeconomic environment.” The root cause can largely be traced back to tariffs that are affecting a wide array of products, including video game consoles. This development is especially concerning for console manufacturers, as historically, prices have tended to decrease over time.
In 2016, both Sony and Microsoft introduced more compact and affordable versions of their consoles, and Nintendo followed suit with the Switch Lite a few years later. Even prior to the onset of tariffs, the traditional pricing cycle was under threat, largely due to heightened competition and escalating development costs. The introduction of a slimmer PS5 in 2023, which simply replaced the original model at the same price, underscores this evolution.
This shift signals that the best time to buy a new game console might now be “as soon as you can,” as prices are unlikely to drop any time soon. This reality is unfortunate for those who missed out on the initial launch-day prices. A more significant concern is that these price increases come at a time when consoles are becoming less accessible to the average consumer.
The console wars that once defined the industry are fading, with Xbox titles now frequently appearing on PlayStation, and vice versa. The proliferation of games previously regarded as exclusives on PC, combined with subscription services like Game Pass, has blurred the lines between platforms. Consequently, there is less incentive to choose one console over another, and alternatives like the Steam Deck are emerging as viable choices.
Moreover, an entire generation of players has been raised on multiplatform experiences such as Minecraft, Fortnite, and Roblox. This demographic is less inclined to invest in expensive consoles and games, making the notion of purchasing $80 titles for a $700 console feel increasingly outdated.
While it would be premature to declare the demise of game consoles, the current price increases are likely to accelerate a trend that has already begun: traditional consoles are gradually becoming a niche luxury item rather than the primary means of playing video games. This shift may pose challenges for platforms attempting to maintain their scale, especially in the absence of new players entering the market due to mid-cycle refreshes and price cuts.
As it stands, if you're considering a new console, it might be wise to act sooner rather than later—especially with the impending launch of the Switch 2 on the horizon.
