AMD hints at PS4 And Xbox One price drops on the horizon

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We have just started getting used to the current generation of gaming consoles i.e. PS4 and Xbox One, but AMD is already hinting at the next generation. Lisa Su, the CEO of AMD suggests that the consoles are running a five to seven year cycle which means we could be seeing the next gen in 2018 at the earliest.

However, there is more that she has shared. In the same statement Su claimed that the current prices of both these consoles are going to be reduced even more in the near future. She did not specify whether she was talking about a specific console or both of the mainstream platforms.

Lisa Su was attending a conference at CES 2016 where she discussed the consoles, their pricing and their future. Here’s the exact statement that she gave:

The consoles work on a five to seven year strategy, that’s the lifetime for these consoles. Without talking about any particular party’s console; there will be opportunities to cost-reduce.

She cited the desire for greater sales numbers as the reason behind potential price drops for the PS4 and Xbox One saying that “consoles tend to be very sensitive to price point, we see that as price comes down console [sales] volume goes up, and that will afford an opportunity to do that in this cycle.”

Moreover, she says that there are going to be technological advancements and upgrades in the consoles that will allow the manufacturers to cut down the price of future shipment models while either maintaining the performance or even increasing it.

What do you make of this, do you think we will get cheaper PS4 and Xbox One soon?

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Comments

"AMD hints at PS4 And Xbox One price drops on the horizon" :: Login/Create an Account :: 27 comments

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SkyPosted:

Pro Its understandable that the prices of the consoles are dropping!


and better for people like me :)

ProPosted:

Its understandable that the prices of the consoles are dropping!

DaedricMcDaedricsonPosted:

They were overpriced at the start of $500 and $350 still so. They are using low end AMD cpu and GPU from early 2011 costs no more than $200. The HDD and the rest of the parts hardly reach a $100 value. Since these are mass produced the price to make actually plummets exponentially because they are buying in bulk by the millions of older products AMD doesn't really see selling as much. The "next gen" was out of date by 3-4 years the moment it came out. Now it is heading on 6 and 7.

VoroPosted:

Sucks how we paid $500 fir the Xbox One and these prices are dropping like crazy...

RobbedPosted:

It'll cost about £150 to buy the console on it's own by the end of 2016. I payed £400 for my xbox one.

SwiftPosted:

Its crazy to think that these two console have been out for over 2 years now. I feel like it was yesterday that I bought my Xbox One.

PintPosted:

Sounds good to me to be honest

SkittlePosted:

Not surprised, the quality of the games have to go down also due to the hardware gradually becoming harder to run games on.

CyimkingPosted:

HTTK Not dropping the prices would be stupid.

Kinda obvious they will be doing this.

But making another console in a little as 2 years from now is kinda pathetic of them.

Most people haven't even switched to the next gen yet.

They should first focus on dropping the prices and giving everyone an extra year to adjust which would cause a much easier transition.

If they come out in two years with another set of consoles 1/4 will still be on 360/ps3, 2/4 on one/ps4, and the last 1/4 on next gen.


The prices are already dropping... In 2013, it was $499 and now it's $350. Im pretty sure they will keep the current gen consoles here until 2018 then release the next gen consoles. Since VR is doing really well and 4k gaming is starting to show up.. designing the next gen consoles shouldn't be a hassle anyways.

ItalianPosted:

5-7 year is a normal lifespan for a console. Price drops are obvious too, no need for hinting for anyone to know that. Cost to make a product drops within 2-4 years if not sooner, which means they can sell it for cheaper because it costs them cheaper. And you might say why sell it cheaper when it costs cheaper because selling it for the same makes them more money. But in reality it won't, less sales because it costs more. More sales, less money, gives them more market share and even if they make less money on the console, it'll sell more consoles which will make more money in software/accessories. Which cost nothing, to an extent.