It has always been something of an unwritten rule that technology gets cheaper over time. Or to put it another way, older technology gets cheaper as modern alternatives replace it. To illustrate, consider the cost difference between buying an iPhone 12 (launched in September 2020) and the latest model, the iPhone 17. Your expectation is that the 13 will be cheaper, and you’d be right: it’s much cheaper. A similar story is told for mass-produced technology. In the 1980s, a laptop could cost around $5,000 (not adjusted for inflation), but you can pick one up today for about a tenth of the price.
What, then, can we say about the PlayStation 5. The popular video game console was launched in November 2020 – a lifetime ago in tech terms – selling at $499 in the U.S. for the Base edition. Effective since April 2, Sony announced that the same edition would rise by a $100 to $649. It’s the second major price hike in a year, as Sony also put prices up by $50 in 2025. It’s almost unprecedented for such a 30% rise over time. As we said earlier, could you imagine that an iPhone 12 increased in value by that amount since its release?
AI industry has put massive pressure on gaming costs
Of course, there are mitigating factors, and this is not only about the perceived greed of Sony. The massive demand from the nascent AI industry for chips and other components required for gaming hardware and software has caused industry-specific inflation. The supply chain issues caused by the Iran War and, indeed, lagging from the conflict in Ukraine. These have all been described by Sony as an example of “global pressures”. And here’s the rub: Sony won’t be alone in doing this; it’s almost certain that the likes of Microsoft/Xbox and Nintendo follow suit.
Moreover, those pressures impact all strata of the gaming ecosystem. Along with price hikes in consoles last year, there were also rises in subscription costs, accessories, and the general costs of buying games, as well as graphics cards. You can also add in software transactions. For instance, Fortnite increased the cost of purchasing its bundles of the game’s virtual currency, “V-Bucks”.
The reaction from gamers has arguably been a mix of anger, resignation, exasperation, and a hint of suspicion. Gamers, like any cultural sub-set, aren’t stupid, so they understand that these global pressures impact the price of items, but they will also point to events like Sony’s very healthy profits recorded across the 2025 fiscal year. In short, they don’t think that global pressures are the only matter at play.
Gaming is not limited to expensive consoles
The gaming industry is broad, of course, and not everyone needs – or wants – to fork out for expensive consoles. From mobile gaming to cozy games, free-to-play MMORPGs to Megaways slots on social casino platforms, there is a wide spectrum of gaming entertainment that can be accessed for free or cheaply. The industry is so much more than consoles and expensive accessories.
Yet, the reason Sony has hit the headlines again is that the company and its flagship device act as a bellwether for the industry at large. Indeed, the news has got people talking about more than the console or current price rises, but about what comes next. Discussions have sprung up about what the PlayStation 6 will cost when it is finally released. And there have been rumblings that Grand Theft Auto VI, which is probably the most eagerly anticipated video game release in history, may exceed $99 when released in November. It would represent a significant hike from the standard for AAA games.
Gamers, most certainly, are not alone in facing price rises. You’ll be in the minority if you haven’t gone to the grocery store and noticed staples like eggs and orange juice rising in price over recent years. You will probably have grumbled if you pumped gas recently. And your digital products, from Netflix to Microsoft Office, will have risen too. But there is a special set of circumstances faced by the gaming sector that sees it face price rises well above general inflation. Gamers understand some of it, but that doesn’t mean they are happy about it.
This content is provided for informational purposes only and is not a substitute for professional advice. AFP editorial staff were not involved in the creation of this content.
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