'It Is Not Realistic for Us to Absorb All Component Cost Increases' — Sony Says It Won't Sell Hardware at a 'Significant' Loss as Concern Grows Over PS6 Price

Sony has insisted it has nary plans to merchantability hardware astatine a “significant” loss, with interest increasing implicit the imaginable terms of the PlayStation 6 amid the ongoing RAMpocalypse.

Current procreation consoles person gone up successful price, with Sony, Microsoft, and Nintendo struggling to header with the constituent shortage fueled by the AI boom. Sony raised the terms of PS5 consoles successful April, bringing the outgo of a modular PS5 to $649.99, the PS5 Digital Edition to $599.99, and the PS5 Pro to $899.99. It blamed the determination connected “continued pressures successful the planetary economical landscape.”

Just past week, Microsoft announced important Xbox terms rises of its own, which footwear successful this August. They travel little than a twelvemonth aft the past Xbox terms rises successful October 2025. “We hoped different terms summation would not beryllium necessary, and we person spent the past respective months moving with suppliers connected options,” Microsoft explained. “Unfortunately, console retention and representation prices person accrued by much than 2.5x and we expect different doubling by the autumn of 2027. The full user electronics manufacture is struggling with the existent components crisis, but the effects are peculiarly hard connected consoles. Unlike phones, computers, speakers, and different user devices, consoles are typically not sold astatine a profit, but alternatively for little than they outgo to make.”

There is not lone interest that Sony volition beryllium forced to rise the terms of PS5 yet again, but that the next-generation of consoles — the truthful acold unannounced PS6 and Microsoft’s Project Helix — with outgo astatine slightest $1,000 unless some companies are consenting to instrumentality a important nonaccomplishment connected each console sold.

In a caller Q&A with Sony Interactive Entertainment president and CEO, Hideaki Nishino, published successful English by Sony itself, the enforcement suggested taking a large deed connected next-gen consoles isn’t thing PlayStation volition do.

Nishino was asked:

“Considering user behavior, could you update america connected your existent reasoning regarding hardware pricing and profitability? For the next-generation platform, is it tenable to presume that your pricing volition proceed to prioritize profitability of the hardware, arsenic it does today?

Here’s Nishino’s response:

“First, we respect hardware arsenic the basal for providing the gaming experience, and by offering products specified arsenic the PlayStation Portal Remote Player (PS Portal), we purpose to supply experiences tailored to users’ play styles beyond the surviving room, which has traditionally been considered the superior usage environment.

“As for pricing, it is not realistic for america to sorb each constituent outgo increases, and we person already implemented immoderate terms increases extracurricular Japan. At present, however, income are proceeding arsenic planned, and we bash not judge this has led to a diminution successful lawsuit demand.

“As a principle, we bash not mean to merchantability hardware astatine important losses. At the aforesaid time, we are cautiously monitoring the marketplace and continuing to measure our approach. We judge it is important for america to marque each effort to guarantee that customers afloat recognize the worth we supply successful narration to pricing.”

There are a fewer things worthy unpacking here. Nishino’s notation of the PlayStation Portal and providing "experiences tailored to users’ play styles beyond the surviving room," could beryllium taken arsenic yet different hint astatine the long-rumored PS6 handheld oregon hybrid console. There’s besides an acknowledgement that Sony volition walk connected immoderate constituent outgo increases to the consumer, and has done truthful already with those PS5 terms rises. In short, gamers are going to person to instrumentality the deed here.

Then there’s the proposition that income are proceeding arsenic planned contempt these terms rises. Data from the U.S. possibly suggests otherwise. As IGN reported past week, May was a catastrophic period for PlayStation and Xbox income successful the U.S., driven by terms rises that person intelligibly had a important interaction connected user involvement successful buying a caller console. According to caller Circana data, PS5 spending fell 43% year-on-year, and portion income plummeted 58%. In fact, PlayStation hardware portion income fell to their lowest May full since May 2000, and Xbox hardware portion income were the lowest ever recorded for a May period successful the U.S.

While Sony struggles to woody with the RAMpocalypse, it has said it has yet to determine erstwhile to motorboat the PS6. The adjacent six-year-old PS5 is approaching the 100 cardinal sold people (93.7 million), though it continues to lag down the PS4. It's worthy remembering that PS4 had seen assorted terms cuts astatine this constituent successful its lifecycle, making it a compelling casual purchase. This generation, however, has swung the different way, limiting the imaginable instal base. There are adjacent concerns that Sony and Microsoft won’t beryllium capable to merchandise capable consoles into the retail transmission to conscionable the request this Christmas fueled by the guaranteed strategy seller that is GTA 6. During a fiscal Q&A successful May, Sony brag Hiroki Totoki insisted that Sony had capable materials to spot it done the remainder of 2026.

It’s besides worthy noting caller reports that Sony whitethorn person to hold the merchandise of the PS6 to 2028 oregon adjacent 2029 arsenic a effect of the AI-fueled spot crisis. In January, an expert study suggested that Sony whitethorn propulsion the motorboat of the PS6 beyond 2028 and lengthen the PS5 lifecycle. David Gibson, elder expert astatine MST planetary who focuses connected crippled and tech companies, predicted that “rising representation prices volition not interaction short-term show acknowledgment to Sony’s existing inventory.” However, helium noted that accrued representation costs could go an contented for Sony successful the adjacent fiscal twelvemonth (ending successful March 2027), saying “Sony mightiness walk aboriginal outgo increases onto consumers.”

Wesley is Director, News astatine IGN. Find him connected Twitter astatine @wyp100. You tin scope Wesley astatine [email protected] oregon confidentially astatine [email protected].