For decades, console gaming followed a pretty predictable cycle. A system launches at a premium price, slim or hardware revisions arrive a few years later, and eventually they become cheaper. But lately, the industry has been doing the exact opposite. Even when many believe Switch 2 could endure thanks to lower parts costs, on May 8, Nintendo suddenly announced the handheld would see major price hikes.
In the US, starting September 1, the Switch 2 price will jump by $50 — from $449.99 to $499.99. The same goes for Canada, Europe, and even in its home base, Japan, where it’s getting hit even harder in late May. The Japanese-exclusive Switch 2 model jumps by 10,000 Yen or approximately $63, while the original Switch family is also seeing a substantial increase. Even the NSO subscription prices are getting more expensive as well.
Nintendo blamed ‘changes in market conditions’ for the revisions and did not officially point fingers at anyone. Unofficially? Well, the timing sure lines up nicely with the tech industry’s ongoing AI-fueled semiconductor arms race. As we all remember, over the past two years, PlayStation and Xbox have both rolled out major price hikes of their own.
The trend arguably started in 2022, when Sony raised PS5 prices across Europe and several other regions. Back then, the US dodged the bullet. That eventually changed as competition for semiconductors, memory production, and AI infrastructure spending started spiraling across the tech industry.
As seen in the table below, console prices have jumped by up to 27% since 2025-2026. Basically, right around the time when tech giants are pouring even more money into AI data centers and breaking records in spending on semiconductors.
| Date | Hardware | Original MSRP | Revised MSRP | Increase |
|---|---|---|---|---|
| August 2025 | PS5 (Disc) | $499.99 | $549.99 | +$50 / +10% |
| PS5 (Digital) | $449.99 | $499.99 | +$50 / +11% | |
| May 2025 | Xbox Series X | $499.99 | $599.99 | +$100 / +20% |
| Xbox Series S (512GB) | $299.99 | $379.99 | +$80 / +27% | |
| Xbox Series S (1TB) | $349.99 | $429.99 | +$80 / +23% | |
| April 2026 | PS5 (Disc) | $549.99 | $649.99 | +$100 / +18% |
| PS5 (Digital Edition) | $499.99 | $599.99 | +$100 / +20% | |
| PS5 Pro | $749.99 | $899.99 | +$150 / +20% | |
| PlayStation Portal | $199.99 | $249.99 | +$50 / +25% | |
| September 2026 | Switch 2 | $449.99 | $499.99 | +$50 / +11% |
At least PlayStation fans can relax for a minute. Sony CEO Hiroki Totoki said the company does not plan to raise PS5 prices again anytime soon during its May earnings briefings. It promises it’ll be able to ‘contain the negative impact’ of memory cost, and is in negotiation with suppliers.
That said, Sony is committed to heavily investing in AI technologies. The company also highlighted that AI-powered systems have already generated $700 million of ‘incremental revenue’ over the last three years. Because of that, the PlayStation maker added that it has partnered with Bandai Namco to explore generative AI tools for entertainment production.
Ironically, older console generations used to become dramatically cheaper over time. Remember when the PS2 eventually dropped below $100, and the PSP and the 3DS became the go-to for budget gaming? Late adopters would also get good savings with the PS4 Slim and various bundles and discounts that came with it.
In 2026, however, waiting may no longer save gamers money at all — especially when we have to quietly foot the bill for the AI boom instead.
