Gaming hardware: rising costs and innovations in the industry
Intelligence Summary
- Discover the gaming hardware industry’s challenges, including rising costs and AI’s impact on console production.
In brief
- Console production costs are rising due to chip demand, especially from the growth of AI.
- Gaming hardware has historically not been a profitable segment for companies.
- Innovation is crucial for console makers to survive in a competitive market.
GAME-scanner analysis
The gaming hardware industry is entering a critical period, with rising chip costs directly affecting console production. According to experts such as Peter Moore and Shawn Layden, former leaders at Sega and Sony, making gaming hardware has never been a lucrative business. The recent AI boom has further increased demand for chips, putting pressure on availability for the gaming sector. This has led to a situation where chips are now considered 'unaffordable' in the context of console production. That raises questions about the future of gaming hardware and the need for innovative solutions.
What does this mean for players?
For gamers, this means the price of new consoles may rise, which could affect how accessible gaming is. At the same time, a stronger focus on innovation could bring new features and improved performance, but that will also depend on how quickly companies can adapt to changing market conditions.
Timeline
14 July 2026: Peter Moore and Shawn Layden share their insights on the challenges facing the gaming hardware industry.