Sony Group Corporation, during their Q3 FY2023 financial report, shared insights into the sales performance of the PlayStation 5 which, according to Hiroki Totoki, the company’s COO and president, has been underwhelming in terms of profitability when compared to Sony’s previous gaming systems. The COO highlighted the growing issue with the rising costs of producing the PS5 as it matures in its lifecycle, with the price of components increasing rather than becoming more affordable as seen with past consoles.
Kepler, a respected hardware and AMD leaker with a notable track record, has made predictions concerning the financial implications that Sony’s situation could have on future gaming consoles, such as the PlayStation 6 and the forthcoming generation of Xbox. In response to the concerns raised by Sony’s COO, the leaker pointed out the cost trends associated with transistors, noting that the shift from FinFET transistors to advanced GAAFETs/CFETs is expected to bring about an increase in costs.
Newer transistor technology like GAAFETs/CFETs promises the potential for more compact transistors with superior performance capabilities. This technological advancement, however, comes with an end to the easy cost reductions that manufacturers once gained through basic die shrinking processes.
In light of such technological and economic trends, Kepler suggests that if gaming console manufacturers aim to deliver a significant boost in performance with their next-generation systems, such as PS6 and the upcoming Xbox, they may need to place heftier price tags on these products. Alternatively, to maintain more consumer-friendly pricing, they may need to settle for more modest increases in performance compared to their predecessors.
Leak and speculation concerning Microsoft’s next-gen consoles further support Kepler’s outlook. Rumors indicate that Microsoft may be planning to introduce two different models, with one notably less powerful than the other. Official details on the PlayStation 6 and next-generation Xbox systems have yet to be released, so gamers and industry observers alike are awaiting firm announcements to see how companies will balance performance and pricing in the future console market.
