Console pricing has gone terribly wrong | Opinion [Gi.biz]

From the article

Tsujimoto's praise for the Switch 2 in the same interview is a nod to the fact that out of all of the platform holders, Nintendo is arguably the only one that acts like it's genuinely concerned about pricing.

"A reconsideration of the value of cheaper, older hardware is one of the most obvious solutions to this problem"
It can't change the reality of hardware costs, supply and demand, or tariffs, but it's notable that the company has made a clear decision to subsidise the Switch 2's Japanese model in order to ensure it remains affordable in that market despite the slide in the value of the Yen.

Strange to ball-wash Nintendo when their console starts at $450 outside Japan.

Praising the discounted Japanese version is nuts. You cannot laud them over decisions made for just ONE country, not even the entire Asia region.

And the article skates over their high prices and extreme nickel and diming, exemplified by the ludicrous pricing for the Nintendo Welcome Tour and that shitty campfire game.


The majority of people buy phones on plans and a phone has way more everyday value to the average person than a console does.

The counter point to this is that a console lasts you for an 8 year generation.
Most people are changing their mobile phones after 4 years.
 
Well it's not Sony or Microsoft's fault, they would cut the price if they could but the components remain expensive and are not advancing as fast as before in perf per watt and the issues with AI being the focus now and the economy/manufacturing rising costs.
 
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And not to be a corporate defender because I do think there is a degree of greed, but ever since these consoles have launched there have been big world economic disrupting events damn near every six months that messes with the logistics of manufacturing and shipping and selling technology. War, pandemics, dock/rail/truck supply line issues in U.S., that jackass that jacknifed a container barge in the Suez Canal massively delaying global shipments, tariffs, geopolitics making rare earth metals more expensive.

It has been nonstop bullshit ever since Covid and it sucks and we are all tired of it because regular consumers are bearing the weight.
 
I'm looking forward to Steam Console so I can just play all my PC games on my Television with ease aswell. Current-gen consoles are an absolute rip-off. The Series consoles just suck and the PS5 is somehow getting worse and more overpriced by the year. A rare feat for a console. It seems like they're all intent in just short term exploitation of the market as they have deducted that the dedicated console market is about to crash regardless. That is the only way this self-destructive strategy of theirs make sense.
 
Valve subsidizes the Steam deck.

Steam deck sales compared to consoles are really low. 4-6 mil units total over 3 years is not great.
This has always struck me as interesting because the amount of media coverage and support would lead you to believe its a much bigger deal than it actually is.
 
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The problem is not consoles price but games price that reached a point that is almost prohibitively high for most people.. and corporations are so stupid and greed that instead of reviewing their production models that are stupidly high and unsustainable, they try to pass that cost to consumers.. of course, trying to cover a mistake with a even bigger mistake can only lead to disaster…
 
Steam deck sales compared to consoles are really low. 4-6 mil units total over 3 years is not great.
This has always struck me as interesting because the amount of media coverage and support would lead you to believe its a much bigger deal than it actually is.
Oh I agree with you but the beauty of PC gaming is all about options to meet people's needs. The final piece of the puzzle is a consolized PC which is exactly what Valve should make. Will it blow up like a PS5? No. But will it peal away at Sonys base by about 5mil? Yeah.
 
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Feel free to fact check me but isn't the base PS5 cheaper in the US than Switch 2? And isn't PS5 selling on par with PS4 when Monster Hunter World came out? And isn't PC gaming reaching some of the highest highs it has ever had?

So what are we actually talking about?

Seems easy to blame the tools for poor performance. Monster Hunter had a lot of issues
You only compared it to the US, while Capcom is very likely focused only in Japan region, in which the Switch 2 is much much cheaper there compared to the PS5.

Japanese Switch 2 is currently sold at ¥49,980, while the PS5 disc is at ¥79,980, PS5 digital is at ¥72,980, and PS5 Pro is at a whooping ¥119,980.

For more context, the PS5 price in Japan had increased multiple times in the past 5 years:
  • In 2020, the PS5 disc was released with ¥49,980, and digital was ¥39,980
  • In 2022, Sony increased the console prices, where PS5 disc costs ¥60,478, and digital costs ¥49,478
  • They then increased it again in 2023, where PS5 disc costs ¥66,980, and digital costs ¥59,980
  • And the latest one was done in 2024, which is the current price above (disc ¥79,980, digital ¥72,980)
Looking at those prices alone, you should've know why Capcom were reacting that way towards Sony, because the price gap is waaay to big between the Japanese Switch 2 and the PS5 digital version, let alone the disc version, and the Pro.
 
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Oh I agree with you but the beauty of PC gaming is all about options to meet people's needs. The final piece of the puzzle is a consolized PC which is exactly what Valve should make. Will it blow up like a PS5? No. But will it peal away at Sonys base by about 5mil? Yeah.

I think the true next step will be when the APU based mini-systems can match PS5 level GPU power but retain the form factor and low cost.

I mean right now, I'm using a mini-system with the Ryzen 9/780m chipset, which is a couple of years old but is amazing for general usage/productivity and is a beast for running emulators and modern games up to e-sports level.

The problem is that although there have been upgrades since then, price has increased something like 80% for an uptick in gpu performance that's maybe 20% at most. Sure, you now have an onboard npu to better handle upscaling and AI tasks, but the price premium is astronomical for a relatively small improvement to gaming performance.
 
Yeah, it's ps5 fault that wilds don't sell, not that the game being garbage. Seems like crapcom sharing the same mindset with purple haired developers, no wonder with all this censorship in their games.
 
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Yeah, it must be the console sales. That couple of million units difference from the PS4 at the same point in its lifecycle must really be hitting Capcom in the balls. It can't possibly be because they made a game which is so terrible that it hit mostly negative reviews on Steam and lost so many players that it's 7 year old predecessor's CCU is almost as high. No sir, we cannot possibly take responsibility for making an ugly, inferior product...
 
To your examples first.
Movie tickets haven't really gone up much. They probably will not. But concession items definitely has. That's where theatres are making most of their money, so that's where they'll increase prices. They're not going to increase ticket prices and end up giving most of it to the distributor anyways.

TV prices has mostly stayed stagnant because companies like TCL and Hisense came in with good enough budget TVs that the big players had to price their mid tier sets down to. They didn't mind because manufacturing cost for TVs had been going down for a while. They also started adding 'smart functionality' to TVs (Roku, Google TV, etc). So they're subsidizing those televisions by selling user data.

Food prices have definitely gone up. Cars have gone up to hilarious amounts. Home prices no longer match reality. Shipping to the US (a huge market) is now more expensive.

Manufacturing costs for microchips have gone up substantially every year since the shortage started in 2020. Adding to that a bunch of fabs shut down or reduced capacity, so there's less manufacturing capacity. This in an age where there's a chip in everything. Remember when cars were being sold without navigation, highway driving assist, etc because their manufacturers couldn't get enough of necessary chips to add those features?

Things were going sideways before the global pandemic, and that just made things worse.

Along with price of goods and cost of living going up, wages haven't really moved to match any of it.

So again, the global economy is in slightly better shape than a bag of shit left out on your front steps on a warm humid afternoon after being in the rain all day.
True but cars and homes is not something everyone can afford, they either rent or use public transportation depending where on the globe they live. Point is those two things are way more important for day to day living. Consoles/Gaming isnt which is why console market cant afford to be in the same bracket aince thats the first thing people will drop if it comes to low income.

Companies need to stop bullshitting, downsize and maybe scale back when games like Hollow knight and Balatro are making millions with the smallest budget. They pump all this money into tech to make the game shiny and then it comes out as another been there done that mid tier game. Releasing one game per generation is their problem, not ours.

Also i don't think there was ever a period for developers where it was cheap to make games. Even in the 90s, ID needed funding for Commander Keen for example. Yes budgets today are insane but what im trying to say, it was never "easy" to make a game and market it.
 
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I think the true next step will be when the APU based mini-systems can match PS5 level GPU power but retain the form factor and low cost.

I mean right now, I'm using a mini-system with the Ryzen 9/780m chipset, which is a couple of years old but is amazing for general usage/productivity and is a beast for running emulators and modern games up to e-sports level.

The problem is that although there have been upgrades since then, price has increased something like 80% for an uptick in gpu performance that's maybe 20% at most. Sure, you now have an onboard npu to better handle upscaling and AI tasks, but the price premium is astronomical for a relatively small improvement to gaming performance.
I'm in the market to find something to plug into my "mancave" tv so I can play my Steam games. I have a 4070S desktop that I mostly game on but that's in an accessible place for the whole family. I want something reasonable to plug into my tv. I currently have my old mini desktop with a 1060 3gb hooked up to it but that's only something I can use when I'm playing something modest.
 
You only compared it to the US, while Capcom is very likely focused only in Japan region, in which the Switch 2 is much much cheaper there compared to the PS5.

Japanese Switch 2 is currently sold at ¥49,980, while the PS5 disc is at ¥79,980, PS5 digital is at ¥72,980, and PS5 Pro is at a whooping ¥119,980.

For more context, the PS5 price in Japan had increased multiple times in the past 5 years:
  • In 2020, the PS5 disc was released with ¥49,980, and digital was ¥39,980
  • In 2022, Sony increased the console prices, where PS5 disc costs ¥60,478, and digital costs ¥49,478
  • They then increased it again in 2023, where PS5 disc costs ¥66,980, and digital costs ¥59,980
  • And the latest one was done in 2024, which is the current price above (disc ¥79,980, digital ¥72,980)
Looking at those prices alone, you should've know why Capcom were reacting that way towards Sony, because the price gap is waaay to big between the Japanese Switch 2 and the PS5 digital version, let alone the disc version, and the Pro.
why would capcom been focused in Japan only if 90% of their player base are overseas ???
 
why would capcom been focused in Japan only if 90% of their player base are overseas ???
Because in the past, Japan used to make up much much more than only 10% of their business (based on your number example). Yes the west grew, but Japan's market for companies that ignored Nintendo and went with Sony actually shrunk.
 
so i just need to get a bundled NS2 every time a new game releases to buy the game at reduced price, got it (y)
Yep, seems easy, right? 🤦‍♂️

It's certainly going to be interesting to see when those Pokémon bundles sell, how many people will be buying $90 Mario Kart. I am sure it will sell a lot, but probably less if they charged "just" $70.

And yeah, the current situation with consoles isn't great. A lot of my son's friends in school (6th grade middle) don't even have a console or they are likely to play Switch.

And if they have a PS5 (virtually nobody has XSX or XSS), they will play Fortnite or other MP, mostly F2P games.

I think console sales will crash with Gen Alpha and will become niche like record players, CD players, DAPs, and increasingly blu-rays.
 
Yep, seems easy, right? 🤦‍♂️

It's certainly going to be interesting to see when those Pokémon bundles sell, how many people will be buying $90 Mario Kart. I am sure it will sell a lot, but probably less if they charged "just" $70.

And yeah, the current situation with consoles isn't great. A lot of my son's friends in school (6th grade middle) don't even have a console or they are likely to play Switch.

And if they have a PS5 (virtually nobody has XSX or XSS), they will play Fortnite or other MP, mostly F2P games.

I think console sales will crash with Gen Alpha and will become niche like record players, CD players, DAPs, and increasingly blu-rays.
it would sell less if it was cheaper ??

Amy Poehler What GIF


* I may have misunderstood you since english in not my native language
 
it would sell less if it was cheaper ??

Amy Poehler What GIF


* I may have misunderstood you since english in not my native language
Marion Kart will still a lot at $90, but less vs sales at $70 price point. The question is how much less.

It will be interesting to see MK bundle sales vs Pokémon bundle sales if that will even be possible to figure out.
 
why would capcom been focused in Japan only if 90% of their player base are overseas ???
Because Monster Hunter's main market is still Japan, where the franchise is super popular there, and it would be dumb if they just ignored them completely.

So if they can't even get a foothold there, then something is seriously went wrong, in which it's the PS5 prices that keeps increasing, instead of getting cheaper.

I guess Capcom's next move is to release another MH game for the Switch 2, either a brand new game or a port of Wilds, so they can maximizing the lower Switch 2 price factor, and get even more people to buy the game + console.
 
Because Monster Hunter's main market is still Japan, where the franchise is super popular there, and it would be dumb if they just ignored them completely.

So if they can't even get a foothold there, then something is seriously went wrong, in which it's the PS5 prices that keeps increasing, instead of getting cheaper.

I guess Capcom's next move is to release another MH game for the Switch 2, either a brand new game or a port of Wilds, so they can maximizing the lower Switch 2 price factor, and get even more people to buy the game + console.
If you said that Japan was the main market of MH games i would agree, but not anymore since World, even without a Switch version Wilds sold 10M copies in the first days while Rise sold 4M copies as a Switch exclusive and 1.3M of these copies in Japan, leaving more than 60% of the initial sales outside Japan.

Capcom would do fine without the Japanese market nowadays, it would be wise ? NO, but they would do just fine.

With all this been said i doubt that Capcom ll ever release an exclusive MH game ever again, its just too much money to ignore, they may do exclusive Collabs for each console, but not the main game.
 
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Feel free to fact check me but isn't the base PS5 cheaper in the US than Switch 2? And isn't PS5 selling on par with PS4 when Monster Hunter World came out? And isn't PC gaming reaching some of the highest highs it has ever had?

So what are we actually talking about?

Seems easy to blame the tools for poor performance. Monster Hunter had a lot of issues
It's clear you have no clue. Basically the clueless people are like, I can afford it, I know others can afford it so no issue.

It's pretty ignorant really. The median salary in the US is 62K. This includes people with kids. 500 bucks is a significant sum to people at the median and everyone below and likely many earning more. If people can't understand this basic economic reality, they shouldn't be forming ignorant opinions on the topic. After one gets a system there is the cost of a second controller which is nearly a fucking 100 bucks in some cases. Now with tariffs everything got worse in the US. And it is not like Switch 2 is selling out anywhere which indicates relatively soft demand for Switch 1 owners to upgrade.

Publishers used to publish into a business model where consoles were loss leaders and close to impulse buy prices, at least later in the generation. Now we get price increases. There is no mass market phase anymore. This is absolutely frustrating for them. Obviously there are real world reasons for this. Semiconductors are no longer dropping in price with node shrinks, inflation from the pandemic made everything more expensive, assholes imposed tariffs, consoles themselves had to add much more tech each gen because TVs have improved so much.

But what can Sony and Nintendo really do other than to eat the loss? Would it matter? How many more people would jump in at 400, 350? Probably not enough to really offset the loss. Sony was running a decent deal up until the moronic tariffs kicked in. Did it help? Rumors have them pursuing a series S type system for the PS6 family. Maybe it will work for them. Plus they can discount that one frequently while still maintaining the high price of the top end model.

Nintendo has a cheap Japan only model but that market is not strained by incompetent leadership like the US.
 
Reminds me from this article

 
This and most people don't buy $1000 phones. They buy $300 Samsungs or Chinese phones. Or, if it just has to be an iPhone, most people will buy an older one, maybe even used.

But at least, most phones get fucking cheaper over time, not more expensive. Call me retarded, but I am used to old shit getting cheaper the older it gets, not more expensive. Price increases for consoles, especially for this gen of consoles, is just scamming people.

Plus Sony is making a fortune off requiring PS+ for online/cloud saves.(and they have raised the price of PS+ A couple times also). They didn't have this revenue source during PS1/PS2 generations.
 
You only compared it to the US, while Capcom is very likely focused only in Japan region, in which the Switch 2 is much much cheaper there compared to the PS5.

Japanese Switch 2 is currently sold at ¥49,980, while the PS5 disc is at ¥79,980, PS5 digital is at ¥72,980, and PS5 Pro is at a whooping ¥119,980.

For more context, the PS5 price in Japan had increased multiple times in the past 5 years:
  • In 2020, the PS5 disc was released with ¥49,980, and digital was ¥39,980
  • In 2022, Sony increased the console prices, where PS5 disc costs ¥60,478, and digital costs ¥49,478
  • They then increased it again in 2023, where PS5 disc costs ¥66,980, and digital costs ¥59,980
  • And the latest one was done in 2024, which is the current price above (disc ¥79,980, digital ¥72,980)
Looking at those prices alone, you should've know why Capcom were reacting that way towards Sony, because the price gap is waaay to big between the Japanese Switch 2 and the PS5 digital version, let alone the disc version, and the Pro.
PS5 is also on pace with PS4 in Japan launch aligned last time I checked

Regardless, the premise of the article talks about US pricing and is poorly construing general price increases to an hypothesised decrease in demand that isnt backed up by any real sales data

PS5, Xbox Series and PC are doing more than well enough 5 years in to this gen for Monster Hunter Wilds to repeat it's success seen with Monster Hunter World on PS4, Xbox One and PC 5 years in to that gen
 
It's clear you have no clue. Basically the clueless people are like, I can afford it, I know others can afford it so no issue.

It's pretty ignorant really. The median salary in the US is 62K. This includes people with kids. 500 bucks is a significant sum to people at the median and everyone below and likely many earning more. If people can't understand this basic economic reality, they shouldn't be forming ignorant opinions on the topic. After one gets a system there is the cost of a second controller which is nearly a fucking 100 bucks in some cases. Now with tariffs everything got worse in the US. And it is not like Switch 2 is selling out anywhere which indicates relatively soft demand for Switch 1 owners to upgrade.

Publishers used to publish into a business model where consoles were loss leaders and close to impulse buy prices, at least later in the generation. Now we get price increases. There is no mass market phase anymore. This is absolutely frustrating for them. Obviously there are real world reasons for this. Semiconductors are no longer dropping in price with node shrinks, inflation from the pandemic made everything more expensive, assholes imposed tariffs, consoles themselves had to add much more tech each gen because TVs have improved so much.

But what can Sony and Nintendo really do other than to eat the loss? Would it matter? How many more people would jump in at 400, 350? Probably not enough to really offset the loss. Sony was running a decent deal up until the moronic tariffs kicked in. Did it help? Rumors have them pursuing a series S type system for the PS6 family. Maybe it will work for them. Plus they can discount that one frequently while still maintaining the high price of the top end model.

Nintendo has a cheap Japan only model but that market is not strained by incompetent leadership like the US.
Lots of words but no numbers? If demand is so soft and these consoles are doing so poorly because of their price then you should easily be able to show the sales numbers vs last gen that show it?
 
so i just need to get a bundled NS2 every time a new game releases to buy the game at reduced price, got it (y)
Or wait.....Then again I got wold on physical at launch for £70... Pretty sure that was the only more expensive game on the Switch 2. But of course some are making it seem to be every game that's $80 lol...
 
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i dont condom piracy since i m a fully grown up man with a good paying job and i can maintain my vices, but as a kid, growing in a third world country ( Brazil ) piracy was the thing that made 90% of brazillians in the 90s be able to get into gaming in first place.

most of you guys never saw one of these and ll never understand what is to not have the money to enjoy entertainment.

 
Plus Sony is making a fortune off requiring PS+ for online/cloud saves.(and they have raised the price of PS+ A couple times also). They didn't have this revenue source during PS1/PS2 generations.
Dont forget PS3 as well. Sony wasnt charging for subscription then while xbox360 did. Only with the PS4 did Sony go in the same direction as MS.

ON TOPIC:
As much as I see myself mostly a console gamer (I have a Steam Deck too), PC aka STEAM is proof we are getting ripped off in the console market. Silksong just came out and already there are CD keys sold for $16 ($4 less). Clair Obscure was like 12% off on key sites the day of release etc. Then you got Nintendo who wont price cut a game in like 3 years. The PC market is far healthier and better as a digital distribution. Consoles are treating digital as if they are giving you everything when in fact they arent paying for the box, arent paying for shelf space, arent paying for printing of discs etc. Cronos just came out and its $40 on digital PC key websites. Tell me when will you ever see this happening on console stores:

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:messenger_tears_of_joy: :messenger_tears_of_joy: :messenger_tears_of_joy:
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And not to be a corporate defender because I do think there is a degree of greed, but ever since these consoles have launched there have been big world economic disrupting events damn near every six months that messes with the logistics of manufacturing and shipping and selling technology. War, pandemics, dock/rail/truck supply line issues in U.S., that jackass that jacknifed a container barge in the Suez Canal massively delaying global shipments, tariffs, geopolitics making rare earth metals more expensive.

It has been nonstop bullshit ever since Covid and it sucks and we are all tired of it because regular consumers are bearing the weight.
Is it because the definition of average job is no longer right and there's no such thing as average job anymore cause you can't outright that? Japan did it right 50+ years ago.
 
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It's called inflation and you better get used to it. We're only getting started. Add in a side of tariffs as well.

Be thankful that consoles are still subsidized (due to the walled garden you guys love to bitch about). Prices would be far higher otherwise.
 
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Keep flapping those gums. Pokémon Z/A bundles for the holidays are going to fly off the shelves.

Then next year will be a year of Zelda.
What does that have to do with a price increase? You're not even following our conversation. For the record, I have already purchased a Switch 2. 🤷‍♂️
 
The fact that sub 500$ prices for consoles will be a thing of the past is a market reality.

But the fact that selling consoles in the 500-1000$ price range will just lower sales and it will make high end consoles not target a younger and mainstream audience anymore is also a market reality that platform holders won't be able to escape.

I guess that this will be the puzzle to solve for the future and the solution is probably something that core gamers won't like (end of console generations, acceptance that a single hardware platform won't make alone the numbers it used to do but it won't matter if there is an ecosystem of platforms with different prices and specs that overall has the same active users, more aggressive multiplatform strategy for games).
 
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