We agree that the gaming industry is headed towards a major pricing catastrophe. Video game console prices could leap due to a sharp tariff bill. Christopher Dring, the notable industry analyst, cautioned consumers against price-hikes in the hundreds on each console. Manufacturers are already facing increasing production costs and tariffs, which may push these prices even higher.
In a good move for consumers, just a few days ago the US and China compromised to reduce important tit-for-tat tariffs. This memorandum will be in effect for 90 days. Whether this gives a long-term benefit to the game industry, we don’t know. Big players such as Sony and Microsoft have just publicly raised the prices on their consoles. They point to these rising costs as a result of increasing tariffs and the soaring costs of producing games.
Nintendo’s forthcoming Switch 2 console is already set to go for €470 (that’s around RM2,263 or US$450 in the US). It’s gotten impossible because development costs have tripled in recent years. Consequently, automotive manufacturers are having to regroup and rethink their pricing models.
“Game prices have never been lower in real terms than they are today,” stated Matthew Ball, emphasizing the irony that while game development costs rise, consumers enjoy historically low prices for games. That trend could be short-lived, with analysts projecting a new era of rising prices for the industry.
With Grand Theft Auto VI launching in May 2026, it’s set to break the US$100 (RM431) psychological barrier. This expected price increase is the beginning of a much more complicated history of video game pricing changes. As developers scramble to protect their profitability amidst a growth crisis in the industry over the past two years, many are turning to subscription services offered by major console makers. These services usually retail at about €15 (RM72) a month, making them attractive options for gamers looking for cheaper alternatives.
In fact, according to one expert, 75% of all consoles that shipped to the US last year were manufactured in China. This extreme dependency on production in China creates a risk that tariffs could have a devastating impact. Since 2019, Nintendo has been working to shift some of its manufacturing operations to Vietnam. This strategy took a hit with a 46% extra tariff that was ultimately—thankfully—suspended for 90 days.
Notably, many industry insiders believe that increasing prices will be the new standard. Niko Partners has noted that “these price points are set to become industry standard over the next two years,” indicating a fundamental change in how games and consoles will be priced moving forward.
The financial strain on consumers is evident, with gamers like Nassim Amegrissi stating, “I’m going to have to be a lot more selective” about their purchases. As prices rise and the market evolves, many are looking towards releases from smaller studios that often provide more competitively priced alternatives.
Daniel Ahmad commented on the situation, suggesting that companies might need to “soften the actual price increase in the US, which is Xbox’s largest market,” in order to maintain consumer interest amid rising costs.
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