Comment by robertlagrant
13 hours ago
True. I think there are two new issues this cycle:
1. They are testing what the market will bear. Ubisoft's silly "quadruple-A game" rhetoric and executives saying "people will have to get used to $100 games" is them testing the water. This should pull back, as most people don't want games that cost that much, unless they're really amazing. They aren't (currently). I imagine this same thinking is going on in hardware-land.
2. Current RAM/GFx card prices are driving up prices all round. It should still be true that for the same spec, console components should get cheaper over time, but I can imagine it's less of an effect at the moment with all the AI data centres hoovering up manufacturing capacity.
It seems like their strategy will be to just raise hardware and media prices. Just keep doing the same at a higher cost. If it's a loss leader today, it will stay a loss leader tomorrow, just at higher cost. The question is whether the customers keep showing up at the higher prices.