Sony just dropped a price increase nobody wanted to see. The PS5 standard console is going up by $100 in the US (an 18 percent jump), with the PS5 Pro and PlayStation Portal also getting bumped, effective April 2. And according to industry analysts, this might just be the opening move in a much wider console price war.
What's driving the price increase
Piers Harding-Rolls, research director at Ampere Analysis, points squarely at memory and storage costs. "The supply chain shock of the elongated increase in memory and storage prices, both essential for console hardware, means that there is some inevitability to the PlayStation hardware price increases announced by Sony today," he told Eurogamer. His read: Sony's component price protections likely expired, and with AI infrastructure demand keeping memory prices elevated, there's no relief in sight.
Here's the thing, this isn't just a Sony problem. Harding-Rolls was direct about where things go next: "It wouldn't be a surprise if Microsoft and Nintendo followed suit in the not-too-distant future."
Valve is already feeling the same pressure. The company delayed its Steam Machines earlier this year specifically because of RAM and storage price surges, pushing the release from Q1 to sometime in the first half of the year at best.
danger
Sony's PS5 standard console rises by $100 (18%) in the US from April 2. The PS5 Pro and PlayStation Portal are also affected. These are confirmed price changes, not speculation.
The GTA 6 problem nobody saw coming
The timing makes this genuinely awkward. GTA 6 is currently targeting a November release, and both Sony and Microsoft were counting on Rockstar's blockbuster to drive a wave of new console buyers. A $100 price hike right before the biggest game launch in years could seriously dent that momentum.
"Both companies will want to take full advantage of the positive impact of this system seller release," Harding-Rolls noted. "Likewise, it's awkward for Nintendo as it won't want to raise the price of the Switch 2 when it is trying to establish the new platform."
Nintendo is in a particularly delicate spot. The Switch 2 is still in its platform-building phase, the exact moment when keeping prices accessible matters most. Raising the price now would undercut everything Nintendo is trying to do with its new hardware rollout.
Switch 2 launch pricing under pressure
What analysts actually think this means for players
Chris Dring from The Game Business didn't sugarcoat it. "The situation facing video game hardware fills me with dread," he said. His concern goes beyond sticker shock at launch. "Some consoles break down and need replacing five years into a generation, will people be able to afford that?"
The knock-on effects for the broader market are real. Harding-Rolls noted that "the console and the AAA PC gaming markets rely on hardware investment to bring in new active players and drive market momentum, so if this weakens it might soften demand for new games." Fewer people buying hardware means fewer people buying software, which is a problem for every publisher, not just Sony.
Dring's longer-term prediction: a longer console generation than usual, with some players potentially turning to game streaming services if they can't justify the hardware cost to play GTA 6. "We have to hope it's a short term problem, because this is an industry that was already struggling for growth in a hyper competitive attention economy," he added.
The key here is that Sony still has a strong existing install base, which softens the blow somewhat. But for anyone who hasn't yet bought a PS5, or is waiting to pick up a Switch 2, the math just got harder. Keep an eye on the latest gaming news as Microsoft and Nintendo's pricing responses take shape over the coming months. Make sure to check out more:
