Memory Shortages Could Make Next-Gen Consoles More Expensive

The next generation of consoles was expected to deliver new games, better graphics, and gameplay experiences impossible on older hardware. However, rising hardware costs and memory shortages are creating uncertainty around the future of console gaming. With Microsoft's Project Helix and Sony's rumored PS6 facing higher manufacturing costs, the next generation could arrive with prices that make console gaming less accessible.

Remember when rumors about the next generation of consoles filled us with hope as we wondered about the adventures ahead? Raising the graphical bar was part of the excitement, but so was the prospect of a clean slate: new entries in our favorite franchises, returning IPs in new forms, fresh stories, and gameplay mechanics that weren't possible on older hardware.

The Next Console Generation Faces Rising Costs

However, this generation has done a lot to undermine those expectations. Whether it is XBOX changing its business strategy or PlayStation focusing on live-service games that have failed to meet expectations, the current generation has left plenty of questions about what comes next. A new generation could provide a fresh start, even if the current one has barely had time to establish itself.

For the first time in a long time, enthusiasm for the next generation of consoles, including XBOX Project Helix and Sony's rumored PS6, is being affected by concerns over pricing. Memory shortages are driving up the costs of RAM, GPUs, SSDs, and other components. Every few months, another rumor suggests that the situation could be worse than initially expected.

Insider claims the PS6's RAM and NAND alone could cost $680 to manufacture. With previous rumors pointing to a $1,000 retail price, the final cost to consumers could be even higher. Previous rumors suggested that the PS6 and Project Helix were targeting a holiday 2027 launch. However, a Fortune report suggests Microsoft's next console could arrive in 2028 instead.

The report profiled XBOX CEO Asha Sharma and discussed the progress she has made since taking on the role. It also highlighted several upcoming plans, including a next-generation handheld device set for release by holiday 2027, while the next Xbox console could launch during the same holiday period in 2028.

The Next Xbox Console Could Cost Up to $1,800

The biggest concern is the projected manufacturing cost of Microsoft's next console. The report says the new hardware is internally projected to cost between $1,200 and $1,800. The lower estimate is already a problem, while the upper end could push the price to $1,800. That would mean paying more than twice the Xbox Series X launch price, potentially bringing the cost close to four times that of some earlier console hardware.

However, such a wide projected price range also suggests the company doesn't yet know the final costs. Component prices could change before launch, leaving Microsoft to decide on the hardware configuration, retail price, and how much of the cost it can absorb. One thing is becoming clear: relatively accessible console hardware could become harder to find.

The situation could also affect regional availability and pricing, depending on how Microsoft evaluates demand and profitability in different markets. Another question is whether consumers in the United States, Canada, and Europe, among Xbox's main markets, will be willing to pay that much for a new console.

Next-generation consoles could be delayed until late 2028.

It may not feel like much time has passed, but rising component costs could force Microsoft and Sony to reconsider their launch plans. Will PlayStation also delay the PS6 until 2028? Could Sony release its rumored handheld earlier to compete with XBOX? If both companies launch their handheld devices in 2027, PlayStation could gain a market advantage before the next home consoles arrive.

An earlier PlayStation launch could also give Sony a one-year lead on the console front if Project Helix does not arrive until late 2028. Given PlayStation's position during the current generation, XBOX would need to consider how it plans to compete. One insider has also discussed the potential manufacturing costs of the PS6, claiming that its bill of materials could be approximately $200 lower.

Depending on how the hardware is received, Microsoft could consider subsidizing the next XBOX before launch to make it more competitive against the PS6. Selling the console below its manufacturing cost could attract buyers, but it would also hurt the company's margins. Charging more for Project Helix wouldn't necessarily help Microsoft compete, especially if the PS6 launches at a lower price.