No console-flation: how the thirst for AI chips is sending game prices soaring | Sports

Met was a universally recognized fact that senior citizens with good incomes should be eligible for lower rates. Those days may be over. In March, Sony announced a £90 price increase for the PS5, while last month Microsoft sports experts that it will be paying at least $75 for the Xbox Series S and X consoles starting in August. All three were first released in 2020. The Switch 2 will also be priced globally from September.

The main trigger, of course, is AI, or more specifically the explosive demand for semiconductors and memory in datacentres. Console manufacturers can offer these products at a lower price, but now they are in high demand and manufacturers can’t do it, so sales are affected. “Initially, the increase in prices seen in sports was driven by the tariffs imposed by Donald Trump at the beginning of last year,” says Andy Robinson, editor-in-chief of sports website VGC. “Then, in October, OpenAI announced a partnership with Samsung and (Korean chip maker) SK Hynix to source a large portion of their DRAM output for datacentres, resulting in a nearly 200% increase in prices. According to Xbox, these prices have doubled again, and are not expected to return anytime soon. “

The problem is compounded by the scale of the business. “The memory market is dominated by three big companies – Samsung, SK Hynix and Micron – and building a factory takes years to achieve,” said Piers Harding-Rolls, a gaming industry analyst at Ampere. “It seems that the hardware industry will wait until early 2028 for the factory to open, but it is not clear whether this will stabilize or reduce memory prices.” Indeed, the CEO of Lenovo, Martin Hiegl, recently said that memory prices may never go back to the lower levels of the past.

Naturally, inflation has affected sales. “Normally, at this point in the generation, consoles can be picked up at a very low price, but the cheapest PS5 now costs 50% more than it did in 2020 – a real, unprecedented level,” says Robinson. “In the US, there is evidence that the market has done bad things.” Last November, which is usually the biggest month of the year for the company, hardware sales hit 30 years. Apparently, the average price of new hardware reached $439. Last month, that number increased to $502, and Xbox recorded its worst May ever for hardware sales, with the PS5 down 58% year-on-year. “

Things are not looking good for the next generation of consoles. Experts are predicting that the PlayStation 6 can sell for $1,000 USD, at least – the same price as Valve’s new PC as a console, the Steam Machine. It feels like breaking the unspoken promise of cheap hardware. Over the years, Sony and Microsoft lost money on each console to keep prices down, and Nintendo used cheaper hardware to keep costs down. Two of the best-selling consoles of all time – the PlayStation 2 and the Nintendo DS – were noted for their reasonable, accessible prices: £299 and £99, respectively.

The prospect of paying four bucks for a gaming machine will hurt many potential buyers. Microsoft is offering “buy now, pay later” plans, with interest-free financing on Xbox models, which can also be offered on other platforms. But hardware may not matter in the future, says Robinson, as cloud gaming can be attractive to consumers and developers alike. Especially when GTA 6 is about to spark a lot of interest in the game from those who may not have modern consoles.” GTA V has sold 230m copies since its 2013 launch; only a few of those fans will have switched to a modern machine. One trailer for GTA 6 attracted 475 million people in its first 24 hours. Although there are no plans to allow the latest music to be played via the cloud, if consumers do not buy the latest hardware it can take-Two to the market itself would you be more profitable?

Xbox and PlayStation run cloud gaming services, but they are highly dependent on broadband connections, and the resolution can be limited for many users. Perhaps the answer will be a longer console and additional offerings. In recent interview Hideaki Nishino, president and CEO of Sony Interactive Entertainment, spoke about his handheld device, PS Portaland how a hybrid console like the Nintendo Switch can give consumers more gaming options. There are rumors that Sony may push the launch of the PS6 until 2029, perhaps in the hope that production costs will decrease, and to give owners a financial break.

“We need to rethink consoles,” says Chris Dring, editor-in-chief of Game Business. “The difference between each new generation was narrowing in terms of appearance. Sony boss) Shawn Layden, ‘we see the difference in pictures that only dogs can hear’. Why do we need PS6? We’ve never had a Naughty Dog game. And I think that’s a question that Sony wants to answer. “

Toys

Released on the Wii U console in 2014, Scram Kitty was a fun and quirky 2D puzzler. You played as a skateboard on a track, running through the walls of a large space to rescue stolen cats. Now, Super Scram Kitty is changing the game for Switch, and it’s as powerful, imaginative and amazing as ever. Jumping, grinding and climbing between places, catching gold coins and avoiding enemies is a fun theme, including elements of Tony Hawk’s Pro Skater, Gravitar and Sonic the Hedgehog. It feels like a long-lost SNES or Mega Drive title lovingly restored.

Available at: Nintendo Switch
Estimated time: 10-hours-plus

For you to read

• The dangers of the digital world have also been highlighted this week. Amazing 550 movies and deleted from PlayStation 5 video libraries even if console owners have purchased the content. According to reportsThis is due to the expiration of the license with the distributor Studio Canal. It comes at a time of great confusion over digital content in gaming, which has led to a forced movement. Stop Killing the Gamenow they are preparing lawsuits against publishers for ending support for titles of previously popular games.

• Incidentally, Sony Interactive Entertainment CEO, Hideaki Nishino, has been telling reporters in Japan that he wants refresh the live sports section, which is dominated by titles such as Fortnite, Roblox and Minecraft. Two years ago, the company canceled Concord’s multimillion-dollar shooter after just two weeks. At least customers got a refund that time.

• What can video games tell us? seasonal migration? The discussion is with an interesting piece looking at the many chapters that explore this issue, showing how climate change is forcing people to leave their homes and make difficult journeys across continents.

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Question Block

A super question from Jamie this week:

“I just took my son to see Supergirl and, naturally, he wants to play video games.

Unfortunately, there are no video games featuring Supergirl (read Peter Bradshaw’s review here). However, the actress Milly Alcock only added to it Fortniteand his assistant, Krypto. They are available as downloads in the product shop, and with different tools and features. Supergirl alone is 1,400 V-coins (around £9), the bundle costs 3,400 V-coins (around £30). Otherwise, Supergirl also has some great stars Lego Batman 2 and Lego Batman 3it’s a fighting game Injustice 2where she is played by veteran voice actress Laura Bailey. It is a violent game, though (think Mortal Kombat and superheroes), so it may not be suitable for small children. And if you’re tempted to watch a Superman game instead, watch out – it’s pretty scary. I just love The Death and Return of Superman on the Super Nintendo or kick Superman Returns on the Xbox 360. However, they’re also in Injustice 2, if you want to set up your own Krypton family-friendly match.

If you have a Question Block question – or anything else to say about the newsletter – post a reply or email us at pushingbuttons@theguardian.com.