Next year could be a grim one for Nintendo, Sony, and Microsoft, as console sales are expected to dramatically decline in 2027 by almost 20%. Thanks to component shortages, video game consoles like the Switch 2, PS5, and Xbox Series X|S have only gotten more expensive over time–a complete reversal of how systems used to get cheaper the longer they were on the market.
According to a report from S&P Global Market Intelligence Kagan (via GamesIndustry.Biz), the math is simple: more expensive machines, fewer consumers able to buy them. The firm is predicting that console shipments will fall to about 27.1 million units by 2027, but it could recover to 37.4 million units by 2030 if the component crisis begins to stabilize by 2028. This would allow Sony and Microsoft to release their next-gen consoles–the PS6 and Project Helix, respectively–and S&P Global Market Intelligence analyst Neil Barbour projected that the consoles will sell for between $600 and $800 each.
“For now, the market faces a compounding problem: hardware that is either too old or too expensive for the median consumer, a software slate that is thin outside a handful of tentpole releases, and a macro environment that keeps any meaningful price relief off the table,” Barbour said to GamesIndustry.Biz.
