Analysts split on whether next-gen consoles will break $1,000 price barrier

Valve announced its Steam Machine will be sold for $1,049 for a 500 GB model and $1,349 for a 2 TB version, acknowledging the price is higher than initially intended but reflects component costs secured over the past six months. The price increase follows similar hikes announced by Sony, Microsoft and Nintendo for their current consoles, prompting analysts to consider whether the upcoming PlayStation 6 and Microsoft's next-generation console, codenamed Project Helix, will exceed the three-figure price range.

"At this rate, the next generation may not even release until 2028, and when it does, north of a grand is the floor," said Joost van Dreunen, CEO of Aldora, adding that memory manufacturers are now “post-consumer,” which he said pushes prices higher.

"It will possibly (even likely) happen anyways," said Mat Piscatella, senior director at Circana, noting the “chaos in the world of components” makes the pricing outlook “beyond cloudy.”

Newzoo market intelligence director Manu Rosier argued that while premium editions could top $1,000, a base model is likely to stay below that threshold for psychological and marketing reasons, citing the PS5 Pro’s recent rise to $899 as evidence.

"Base next-generation models are likely to hold under $999 for psychological and marketing reasons," Rosier said.

Piers Harding-Rolls, head of games research at Ampere Analysis, suggested Sony and Microsoft might avoid four-digit pricing by leveraging larger scale and established supply-chain relationships, which Valve lacks.

"Next-gen consoles will likely be more expensive, but they have different levers that can be pulled to offset hardware costs," Harding-Rolls explained.

The analysts concur that component price volatility will influence launch timelines, with most expecting the new consoles to appear toward the end of 2028.