Sony Interactive Entertainment president and CEO Hideaki Nishino has stated that the company does not intend to sell future hardware, such as the PlayStation 6, at a significant loss. This comes amid growing concerns about the potential cost of next-generation consoles, driven by ongoing component shortages exacerbated by the AI boom.
Console prices have seen recent increases. Sony raised the prices of its PS5 consoles in April 2023, citing "continued pressures in the global economic landscape." Similarly, Microsoft announced price hikes for its Xbox consoles, attributing them to a more than 2.5x increase in console storage and memory prices, with expectations of further doubling by fall 2027. Unlike devices such as phones or computers, consoles are often sold for less than their production cost.
These rising costs have fueled speculation that the PS6 and Microsoft's Project Helix could exceed $1,000 at launch unless the companies accept substantial losses on each unit sold.
Responding to a question about hardware pricing and profitability for next-generation platforms, Nishino indicated that absorbing all component cost increases is not realistic. He noted that Sony has already implemented some price increases outside Japan and that sales are proceeding as planned without a decline in customer demand, despite these adjustments. He reiterated that, as a principle, PlayStation will not sell hardware at significant losses but will continue to monitor the market and evaluate its approach, emphasizing the importance of customers understanding the value provided relative to the price.
Nishino's comments also touched on providing "experiences tailored to users’ play styles beyond the living room," which has led to further speculation about potential PS6 hardware configurations. However, data from the U.S. market may suggest a more significant impact of price increases on consumer behavior. According to Circana data, PS5 spending in the U.S. fell 43% year-on-year in May, with unit sales dropping 58%. This marked the lowest May total for PlayStation hardware unit sales since May 2000, while Xbox hardware unit sales reached their lowest ever recorded for a May month in the U.S.
Sony has not yet announced a launch window for the PS6. The current PS5 console, released nearly six years ago, is approaching 100 million units sold but trails the sales pace of the PS4 at a similar point in its lifecycle. This generation's higher price points have been seen as a limiting factor for the potential install base. Concerns also exist about supply chain capabilities to meet potential demand this Christmas, especially with the anticipated release of Grand Theft Auto 6. Sony has stated it has sufficient materials to last through the remainder of 2026.
Recent reports suggest the PS6 launch could be delayed to 2028 or 2029 due to the chip crisis. An analyst report from January indicated that rising memory prices might not impact Sony's short-term performance due to existing inventory, but could become an issue in the next fiscal year, potentially leading to further cost pass-throughs to consumers.