Console manufacturers like Sony and Nintendo should extend the lifecycles of their current hardware, the PlayStation 5 and Nintendo Switch 2, for as long as possible, according to former PlayStation Worldwide Studios boss Shuhei Yoshida. He cited soaring production costs as a primary reason for this strategy, suggesting that companies may be looking to delay the launch of next-generation hardware.
"Sony and Nintendo have sold enough numbers of their current-generation hardware, so because of the cost of goods, they might be looking [at] pushing back the launch of next gen," Yoshida told The Verge. "I think they should try to keep the current generation as long as possible, because people are very happy using PS5 and Switch 2."
Yoshida explained that components specific to consoles and PCs have seen price increases that are more significant than those in other entertainment sectors. "People have [a] finite budget, and it feels like PC and consoles, the components very specific to these devices have increased their price way more than all the other forms of entertainment," he stated. "People who have systems like PS5, Switch 2, or PCs – you know, good enough PCs – probably will be happy to play games on them and not necessarily consider replacing [them]."
The skyrocketing cost of computer memory, exacerbated by demand from AI data centers, is a key factor impacting production. Limited memory production resources mean that manufacturers might struggle to produce new consoles in desired volumes or at a price consumers are willing to pay.
This has already led to price increases for current consoles. The PS5, originally launched at $500 for the disc version and $400 for the digital edition, now costs $650 and $600 respectively. The PS5 Pro, which debuted at $700, now sells for $900. The Switch 2 has also seen a $50 price increase since its launch last year, rising from $450 to $500.
Furthermore, Yoshida noted a lack of demand from both consumers and developers for significantly more powerful hardware. "I don't think lots of people are asking for more power — 'We need more power!' — or even developers," he said. "I don't think developers are asking [for] better hardware! So I think that means that the current generation, Sony and Nintendo are going to do pretty well for many years to come, still."
In contrast, Xbox appears more committed to a next-generation offering with its Project Helix initiative. Yoshida acknowledged that this approach might be challenging for Microsoft, which has not seen the same level of console sales as its competitors. "Xbox is a team who wants to change the competing landscape, so it's going to be hard for them, but it's their time to play. It's very exciting, what's going to happen next year?"