The Devastating Consequences of Rising Console Prices

The popularity of Monster Hunter Wilds, one of the best-selling games of the year, has been impeded by the high price of the PS5, according to Capcom's president, Tsujimoto Haruhiro. In an interview with Nikkei, Tsujimoto stated that the company has found the cost of the PS5 to be a significant obstacle for consumers, making it challenging to build a mass-market franchise like Monster Hunter. This concern is not unique to Capcom, as many industry executives have expressed similar worries about the high costs of console hardware. The issue is not new, but the lack of price cutting for console hardware has become a major problem. Historically, consoles were expensive at launch but became more affordable over time due to price cuts and the release of lower-cost hardware revisions. However, the PS5 has become more expensive since its launch, with the recommended retail price increasing from $499 in 2020 to $549 today. The digital edition of the PS5 has seen an even more significant price increase, rising from $399 to $499. This change in pricing strategy has far-reaching implications for the gaming industry, as it alters the promise of the console ecosystem for developers, publishers, and consumers. The high cost of consoles is a barrier to entry for many consumers, particularly children and teenagers who are the next generation of gamers. The industry's failure to provide affordable hardware options risks driving these consumers to alternative platforms, such as smartphones, which could have long-term consequences for the console market. The success of the Nintendo Switch, which has maintained an affordable price point, demonstrates the importance of considering pricing in the gaming industry. To address this issue, platform holders must reconsider their pricing strategies and focus on providing affordable hardware options. This could involve releasing lower-cost hardware revisions, maintaining support for previous generations of hardware, or exploring alternative business models. Ultimately, the solution to this problem lies with the platform holders, and failure to address it could have severe consequences for the gaming industry.