Former XBOX Boss Questions the Future of Consoles as Hardware Costs Rise

Rising console costs could eventually force gamers to abandon dedicated hardware, according to former XBOX executive Peter Moore, as reported by PureXbox.

Speaking about the future of the console market, Moore said that higher component prices, AI-driven chip demand, and changing gaming technology could challenge the traditional console business model.

Console Hardware Is Becoming More Expensive

Console manufacturers generally earn most of their profits from game sales, subscriptions, accessories, and digital add-ons rather than the hardware itself.

However, rising manufacturing and component costs make it harder for companies to keep console prices affordable while avoiding significant losses on each device sold.

Moore also highlighted the growing demand for processors and memory components from the AI industry. Gaming hardware companies now compete with AI infrastructure providers for many of the same components.

Valve recently warned that the global memory and storage shortage continues to worsen, which could place additional pressure on future gaming hardware prices.

Affordability Could Become a Major Problem

Moore believes consumers may eventually decide that new consoles cost too much.

A console priced at around $800 could encourage players to continue using their existing systems or switch to gaming PCs instead of buying new dedicated hardware.

If hardware prices continue rising, affordability could become one of the biggest challenges facing the next console generation.

Could Traditional Consoles Eventually Disappear?

The gaming industry has repeatedly questioned whether each console generation could become the last.

Dedicated gaming systems have remained relevant because they provide a simple setup, consistent performance, and access to exclusive games. Moore believes improving technology could eventually weaken those advantages.

He predicts that televisions could one day include enough built-in processing or streaming functionality to deliver games without a separate console.

PCs Could Replace Consoles for Some Players

Gaming PCs may also become a more attractive alternative if console prices continue rising.

Players who already own a computer could connect it to a television or stream games from another room. This setup could provide a console-style experience without requiring another expensive device.

PC gaming also gives users access to a wider selection of hardware configurations, storefronts, subscription services, and upgrade options.

A Major Test for the Console Market

Moore describes the current economic and technological environment as a major test for traditional consoles.

Hardware manufacturers must balance component costs, consumer expectations, performance targets, and long-term profitability. Companies may need to reconsider console pricing, release schedules, hardware specifications, or subscription strategies if costs remain high.

Traditional consoles are unlikely to disappear immediately, but rising prices could gradually change how players access games.

The next major hardware generation may show whether consumers still prefer dedicated consoles or increasingly choose PCs, smart TVs, and streaming services instead.

In other gaming news, Steam Machine demand remains strong, with estimates suggesting Valve is selling 12,000 to 15,000 units per week despite its $1,049 starting price.