A reliable hardware insider has warned that the PlayStation 6 may cost Sony around £750 just for raw materials, pointing to a potential retail price of up to £1,000. The escalating cost of memory and storage components, driven by competition from AI data centres, is inflating bills for console makers.
Component Costs Soar by $200 in Months
Leaker KeplerL2, who has a track record of accurate video game hardware predictions, stated on forum NeoGAF that the PlayStation 6's bill of materials (BOM) has jumped by approximately $200 (£150) since his March estimate. In late March, he put the BOM at around $760 (£575). Now, he says, it has risen to roughly $960 (£730). This figure covers only the raw components, excluding research and development, manufacturing, marketing, and other costs.
KeplerL2 also maintained that the console remains on schedule for a 2027 release, despite Sony only barely acknowledging work on a next-generation system.
Why Prices Are Rising
The price hike stems from a global shortage of memory and hard drives, as these components are increasingly bought up for AI data centres. This trend has affected everything from smartphones to laptops, and game consoles are no exception. Microsoft has warned of continued price increases for its current generation devices, while Apple recently raised prices. Sony, Nintendo, and Microsoft have all increased prices on existing hardware.
Traditionally, Sony and Microsoft have sold consoles at a loss, subsidising hardware to drive adoption. However, recent years have seen a shift away from this model, leading to higher retail prices. With a BOM of roughly $960, the PlayStation 6 would likely cost well over $1,000 (£750) at retail. Given the current £790 price of the PS5 Pro, the base PS6 could approach £1,000 in the UK.
Market Challenges Ahead
The PS5 Pro, which recently received a price rise, is already the most expensive console ever made, yet it accounts for only about 13% of overall PlayStation 5 sales. A base model costing even more would struggle in the mass market. However, unless Sony (and Microsoft and Valve) accept massive hardware losses, they have little choice given the component market.
The scarcity of memory is expected to persist for at least five years, with costs unlikely to return to previous levels. This may explain why Sony is keen to launch the PS6 as soon as possible, even if that means a late 2027 release, as costs will only rise further.
Nintendo may be relatively fortunate, having launched the Switch 2 before the situation worsened. Meanwhile, the law of diminishing graphical returns makes it unlikely that the PS6 or Microsoft's Project Helix will offer a significant enough improvement to justify the high price tag. How Sony will respond to these challenges remains to be seen, but it could make the problems of this generation seem minor in comparison.
