Why are video game consoles so expensive?

Cliff Notes – Why are video game consoles so expensive?

• Rising Costs vs. Value: Video game consoles are becoming increasingly expensive, with minimal graphical improvements, leading consumers to feel they receive less value for their money.

• Economic Factors: Price hikes are attributed to various factors, including tariffs and the demand for more powerful components to support advanced graphics, making consoles less accessible for the average consumer.

• Market Dynamics: The shift towards high-end gaming machines, like Steam Machines, suggests a move away from mass-market consoles, potentially alienating budget-conscious gamers during peak shopping seasons.

Games Inbox: Why are video game consoles so expensive?

Console are already expensive and they’re getting more so (Metro)

The Friday letters page is starting to believe that Half-Life 3 is real, as one reader lays out who he thinks should win The Game Awards 2025.

Less for more
Seeing the reaction to Steam Machine being closer to PC in price than console, and how desperate people are for the current Black Friday savings on PlayStation 5, I think it’s fair to say that consoles, and video game hardware in general, has got too expensive for the average person.

We all complain about the cost of games but at least there’s ways round that in terms of sales and buying physical. With a console you’re stuck with an up front cost you can rarely do much about, except maybe at one time of the year.

But why have they got so expensive? As the prices have gone up the leap in graphical improvement has gone down, so it seems like you’re getting even less for your money than you were already. Unfortunately, the answers all seem to be very technical and dull.

Partly it’s because of Trump’s tariffs and AI needing more and more horsepower, as another reader said recently. But it’s also the fact that although the leap is small, getting better graphics still requires more expensive components and the level of complexity nowadays is so far beyond 20 or so years ago it’s really pointless to try and compare.

None of which helps anyone trying not to bankrupt themselves this Christmas. As others have said, we don’t need a next gen and I’d much rather spend £500+ on games than the barely improved hardware needed to run them.
Trepsils

Expert, exclusive gaming analysis

Regular comment
It seems we’re never far away from someone else writing in to complain about Bethesda and I can’t believe this time it’s going to be me. But that story about the Fallout 4 Anniversary Edition being a complete disaster… I didn’t know whether to laugh or cry.

Bethesda are so technically incompetent they can’t even re-release a 10-year-old game as a quick cash grab without breaking the entire game. As far as I’m concerned, it’s just pride and arrogance that makes them like this. They think to actually improve their graphics, or do something about their bugs, is admitting they were wrong all along but nobody cares about that, just make the game work from the start!

Nintendo spent a year polishing Zelda: Tears Of The Kingdom and it sounds like Rockstar are doing the same with GTA 6. How long does Bethesda take polishing their games? A whole afternoon?

And like one of those comments said in your story, just stop re-releasing and remastering old games. Stop wasting your time and make something new! It’s 14 years since Skyrim (the anniversary was just the other day) and you’ve barely moved forward an inch since then.
Gemu

High-end purchase
The only unsubsidised home console I’ve ever known was the 3DO. Which was very expensive, especially in the USA. Lacking the monetisation model of a console it had to be sold to make profit day one.

Steam’s and Microsoft’s next machines both sound like they’ll be pricey and not designed as mass market machines.

That doesn’t mean they won’t provide value and find a worthwhile audience. I’m still very interested to see how they turn out. But they don’t sound like direct competition to a console.
Simundo

Kirby always sucks
One would like to know: will you be reviewing Neon Inferno and R-Type Delta: HD Boosted?

Also, your Kirby Air Riders review… just, ugh. Just kidding. If you feel that the pink cuddly one sucks big time air of joylessness, then in the spirit of subjectivity, I say right on. The maelstrom of malcontent in the comments section was pretty amusing but predictable though.

I’m still looking forward to Sakurai-san’s latest endeavour eventually though, because I quite enjoyed the demo and you could just feel the love and ardour that’s gone into each of its polygonal pores. Just have too many racers on my gaming circuit at the moment with Mario Kart World, Fast Fusion, and Gran Turismo 7 on PlayStation VR2. Sick set of racers, those!
Galvanized Gamer

GC: Yes, to Neon Inferno but we’re not sure about R-Type Delta as we haven’t been able to get hold of the publisher. Also, that’s quite a lot of shade you’re throwing at Sonic Racing: CrossWorlds.

Fair-weather friends
Microsoft owning Rare is likely the problem with Nintendo putting N64 Diddy Kong Racing on Switch.

Now Microsoft have gone to releasing their own games on different platforms I was wondering if this means they might greenlight Diddy on Switch?

Even better a sequel.
Goldenlay

GC: Microsoft is always bragging that they get on well with Nintendo, so in theory they shouldn’t have any problem with it or any of Rare’s older games.

Spoiler: they didn’t
RE Bosley. I really don’t think Valve are going to choose the Xbox Partner Preview to unveil Half-Life 3.

I think it’s actually real this time, but I don’t think they need to bury the hatchet with Microsoft to gain traction or publicity and the upcoming Game Awards seems like a more natural fit, if they tie it to an event at all.

Revealing the game at the Xbox show would also mean it will be coming to consoles, and I must say I think the game might be a timed PC/Steam Machine exclusive (if it is coming to Xbox, etc. they’d have to make the previous games available on modern consoles too, surely?).

If Valve are serious about the Steam Machine, I can’t think of a better exclusive to coax players to it. It could even be a pack-in game.

A realise I’m getting ahead of myself, as the game might not even exist, but despite all he false flags over the years it really feels like this time Half-Life 3 is really going to happen.
ANON

GC: We think you’re probably right, including it being PC-only. When it will be unveiled is very hard to predict though. The Game Awards seems possible but just suddenly dropping a trailer out of nowhere, like they did with the Steam Machine, is probably more likely.

Gyro-mite
One thing that makes me excited for the new Steam Controller is the potential to make gyro aiming more mainstream and natively supported by more games.

Gyro aiming has been a revelation ever since I first tried it on my Wii U with Splatoon. It beats even mouse and keyboard for accurate and intuitive aiming. Only why does the controller have to be this ugly?
Ali K

GC: We agree, Splatoon’s aiming is excellent and we don’t know why the DualSense doesn’t offer the same options, as it can do it if the developer wants.

Award favourites
Regarding the 2025 Game Awards and the fact that Clair Obscur: Expedition 33 seems likely to be the winner, with so many reviewers giving full marks it seems inevitable! But it’s seemingly well-deserved, though I have not played it myself yet. I would have possibly liked to have seen Silent Hill f given a chance but quite satisfied that the audio design award would be a nice win for the game. Best narrative and performance would be a worthy win also, as Silent Hill f definitely was a very atmospheric and character driven story.

I would also like Indiana Jones And The Great Circle to have a win also, as for me I never really would have thought to have got such a high quality movie favourite from this franchise. It’s literally like having another film in the franchise but being able to be immersed in the game itself, instead of just watching it instead.

I did say Clair Obscur: Expedition 33 would possibly win but I’m not going to discount Death Stranding 2 and the ever impressive Kingdom Come: Deliverance 2. Both games are so well designed from every angle possible, with story and gameplay design depth inside two very large worlds that are so varied and beautiful to explore, with the very finest of acting.

For me, I’d like to see Hollow Knight: Silksong get the best art direction due to my love of the indie style artwork, which these games do so well in showcasing. Along with Death Stranding 2, Silksong also should be a major contender for best score and music also.

I am glad Donkey Kong Bonanza has been recognised for the best family game, as the game was way better to play than I originally envisioned but definitely up against another well received Mario Kart game, which makes this category interesting.

Another three notable games for me are Hades 2 and Blue Prince for the best independent game award and No Man’s Sky for best ongoing game.

Definitely looking forward to the show, with some of the best games of recent years. 2025 has delivered and excelled in my opinion and given 2026 a hard task indeed, to get the better of a great year for our favourite hobby.
Alucard

Inbox also-rans
That Xbox showcase was pretty good, like you said. What a difference not having to see Phil Spencer’s grinning mug makes!
Boltz

If a Steam Machine is going to be as expensive as a gaming PC, or even just close to it, why wouldn’t you buy that instead. That’s the reason Steam Machines flopped last time and I’m not sure Valve has really learnt its lesson.
Shaggy

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