For years, gamers like me would wait a couple of years post-launch for a new console. It wasn’t just about waiting for a substantial library of games or seeing which system would dominate with exclusives; it was also a strategy to snag better prices and improved models.

Historically, game consoles saw price cuts and redesigns that made older models obsolete in a few short years. From the Atari VCS to the PS4, it was almost a guarantee—prices would plummet, and consoles would get sleeker and more efficient.

The Price Drop Drought: A New Era for Consoles?

However, that trend seems to be faltering. The last significant price drop for a major console came way back in 2016 with the PS4 Slim, slashing prices from $349 to $299. Fast forward to today, and the landscape is alarmingly different: we’re experiencing price increases instead! In 2021, the OLED Nintendo Switch saw a $50 hike, while the PlayStation 5 and Xbox Series consoles recently endured similar bumps ranging from $80 to $100.

What's Behind This Price Surge?

Multiple factors contribute to these price increases, including inflation, pandemic-induced supply shortages, and shifting corporate strategies. Companies are increasingly hesitant to sell consoles at a loss, relying more on game sales to make up the difference. But let’s not forget the role of corporate greed—shareholders still come first.

The Death of Moore’s Law: A Gaming Catastrophe?

One of the most significant technical reasons behind rising prices is the slowdown of Moore’s Law, which predicted that the number of transistors in a chip would double every two years. This trend has enabled major improvements in chip performance, but now we’re reaching a standstill.

Manufacturers that once thrived on cutting-edge processes now face increased costs and lengthy development times. Without revolutionary breakthroughs in chip technology, we’re bound to hit physical limits sooner rather than later.

The Implications for Game Consoles

When it comes to consoles, advances in die shrinks—a method that reduces power usage and chip size—are yielding fewer benefits, primarily producing chips that are smaller but not significantly cheaper or more powerful. This means less motivation for hardware redesigns and slimmer models that gamers once relied on for better prices.

In the past, these improvements directly benefitted consumers: smaller power supplies, streamlined designs, and ultimately, lower prices. Take the PlayStation 2, where the Slim edition dropped prices from $299 at launch to just $99 by 2009. But now, we're seeing diminishing returns on that front.

No More Waiting—Buy Now or Pay More Later!

As a result, the promise of future improvements or price drops is rapidly vanishing. Major manufacturers like Sony and Microsoft have made only slight tweaks to their latest consoles. While keeping prices steady might seem like a win during high inflation, rising manufacturing costs are making it more challenging than ever for gamers to expect lower prices later.

Even in the PC market, the narrative is the same: recent generations of GPUs have seen prices rise while performance improvements are marginal. The days of waiting for a better deal appear to be over.

Last week, I took the plunge and pre-ordered a Nintendo Switch 2—the first console I’ve ever bought on launch day. With technology stagnating and prices likely to rise, the strategy of patience has lost its allure. It looks like the era of counting on price cuts and upgrades is behind us!