Recession Could Affect Sales Come 2021, As Next-Gen Consoles Suggested To Range From $450 to $499, Says Veteran Game Analyst

Recession Could Affect Sales Come 2021, As Next-Gen Consoles Suggested To Range From $450 to $499, Says Veteran Game Analyst
Credit: Sony and Microsoft

Behold, next-generation consoles could be pricier than everyone thought. After a rumor on PS5’s price posted by a Bloomberg report, Ampere Analysis, an entertainment analytics firm, and Piers Harding-Rolls veteran game analyst, cited in a new report that suggested that both the Xbox Series X and PS5 would cost between $450 and $499.

Furthermore, the analyst believes that the current pandemic and the projected global recession will have an impact on next-generation consoles, though it would be felt in 2021. Another thing the report points out is how the Xbox All Access subscription plan could come handy in the current economic crisis.

Here’s an excerpt from the recent report:

“Back in 2008, the console market continued to perform strongly in the face of a global recession. The console generation at that time included Microsoft’s Xbox 360, Sony’s PlayStation 3 and Nintendo’s Wii.

The only platform which underperformed relative to the previous generation of consoles during 2008-2010 was Sony’s PS3, which launched in 2007 at a very high price point compared to the competition. Nintendo’s Wii offered lifestyle and fitness titles that catapulted the platform into the mainstream, was cheaply priced, and sold incredibly well over the period. Microsoft reduced the price of its Xbox 360 twice in 2008 to generate sales momentum in what was overall a challenging trading climate.

We expect the new Sony and Microsoft consoles to be launched in November 2020 if they are not delayed due to component supply chain or game development bottlenecks. We also expect them to begin at a price point of $450-$499. We believe it is inevitable that a recession will undermine sales to an extent, but that any impact will be more significantly felt later in 2021 once the initial early adopter launch surge ends.

As both new consoles will support backward compatibility. Also, most new third party games over the next 18 months will help the older generation of consoles, consumers impacted by a downturn may not feel the need to upgrade as early as they may have.

We expect Microsoft’s Xbox All Access initiative – spreading the cost of console hardware and bundling it with services for a monthly subscription – to be used from the launch of the Xbox Series X in select territories. These sort of exible go-to-market approaches will be essential for supporting adoption during a recession.”

Besides, Microsoft’s Phil Spencer said it himself in a recent discussion with IGN that big plans are surrounding Xbox All Access for the Xbox Series X launch. However, we can’t tell if Sony would come up with a similar offering for its PlayStation 5, but we can be hopeful.

Asides from next-generation consoles, Ampere Analysis cited that PC gaming hardware, including VR headsets and graphics card, would also feel the impact. However, game live streaming and eSports are progressing.