The Validity Of Consoles May Face A ‘Real Test’ Amid Rising Prices, Says Ex-Xbox Boss
Former Xbox boss Peter Moore has raised concerns about the viability of dedicated gaming consoles as hardware prices continue to climb amid ongoing component supply chain challenges. Moore explained that the console business model traditionally relies on software, subscriptions, and add-on purchases as primary revenue drivers, rather than hardware sales alone.
If console prices rise significantly due to production cost increases, Moore suggests the value proposition of console gaming could face a critical test. Consumers may become less willing to invest in expensive dedicated hardware if the entry cost becomes prohibitive, potentially driving them toward alternative gaming platforms or services. Moore’s assessment indicates an inflection point for the industry—consoles have traditionally maintained affordability to build an installed base that manufacturers then monetize through their ecosystem. The rising cost of components threatens this established business model, particularly as the industry navigates ongoing supply chain disruptions.