“We are carefully monitoring the market”: As Xbox prices increase, PlayStation maker Sony says it doesn’t want “to sell hardware at significant losses”

Thanks to the rise of AI and its insatiable hunger for all the silicon its manufacturers can get their hands on, the last several months have been very rough for the tech industry and any consumer interested in purchasing new electronics. Ongoing RAM and shortage shortages show no signs of recovery any time soon, with prices continuing to rise and supply continuing to fall.

Gaming is one of many verticals that’s been hit hard by the hardware crisis, with Microsoft recently announcing huge Xbox console price hikes that go into effect in August and Valve debuting the Steam Machine with a controversial $1,000+ price tag that was set with current market conditions in mind.

Naturally, many have wondered if PlayStation maker Sony also plans to raise the cost of its PS5 consoles soon — and interestingly, according to an answer from a recent Q&A session within the company, it sounds like a price increase may be in consideration.

“First, we regard hardware as the base for providing the gaming experience, and by offering products such as the PlayStation Portal Remote Player (PS Portal), we aim to provide experiences tailored to users’ play styles beyond the living room, which has traditionally been considered the primary usage environment,” Sony replied to a question about hardware prioritization and profitability moving forward.

“As for pricing, it is not realistic for us to absorb all component cost increases, and we have already implemented some price increases outside Japan,” the firm continued. “At present, however, sales are proceeding as planned, and we do not believe this has led to a decline in customer demand.”

Valve Steam Machine render showing the cube-shaped desktop PC on a cream-colored background — As Sony continues “monitoring the market” and seemingly evaluates a PlayStation price hike, Microsoft has already increased Xbox prices and Valve has launched its new Steam Machine with a baseline cost of $1,049. (Image credit: Valve)

The key takeaway here is that Sony doesn’t “intend to sell hardware at significant losses,” which suggests that it might follow in Microsoft’s and Valve’s footsteps by raising the price of PlayStation consoles to offset the ballooning costs of RAM and storage.

“As a principle, we do not intend to sell hardware at significant losses. At the same time, we are carefully monitoring the market and continuing to evaluate our approach,” it added. “We believe it is important for us to make every effort to ensure that customers fully understand the value we provide in relation to pricing.”

It’s worth noting that as Sony mentioned, it’s already given the PS5 a price hike once this year, and clearly doesn’t want to make them more expensive again. That being said, if component costs continue to become more and more untenable, it may not have a choice if it wants to avoid “significant losses.”

All in all, right now is just a bad, bad time for tech hardware, whether you’re looking to buy devices or market and sell them to the masses. I don’t envy console makers like Microsoft and Sony right now…even if it’s not lost on me that these companies have contributed to the problem by helping to fuel the push for AI.

I fear the business has some dark years ahead of it, and that we’ll see next-gen consoles like Xbox’s Project Helix and the PS6 retail for over $1,000 like the Steam Machine has. I can only hope that won’t be true, but according to analyst Joost van Dreunen, “north of a grand is the floor.” My hopes aren’t exactly high.