For years, new video games looked like one of the best deals in entertainment: buy a console, buy a game, plug them into your home television, and play for hours.
That bargain feels a lot less simple today. Price increases are hitting almost every layer of the hobby, pushing it increasingly toward luxury territory.
Hardware prices have increased in the past year: Microsoft‘s Xbox Series S jumped from $379.99 to $399.99 in October, and the Playstation 5 Disc Edition’s price rose from $549.99 to $649.99 in April. On Wednesday, Valve increased the prices of its popular Steam Deck systems to “reflect the current state of component costs.” The lowest-cost Steam Deck handheld device is now $789, up from $549.
Nintendo’s Switch 2 currently costs $449.99, but will increase to $499.99 in September. The system’s Mario Kart World, priced at $79.99, has become a prominent example of the industry inching toward the era of the $80 game.
Subscriptions have seen price increases, too. PlayStation Plus’ monthly Essential plan went from $9.99 to $10.99 in May, while Xbox Game Pass Ultimate jumped $10 a month in October to $29.99 before the company announced a cut in April to $22.99.
PC gamers are facing their own squeeze, as memory prices continue to rise.
Analysts tell Business Insider there isn’t a simple fix to gaming’s upward pricing shifts.
“The reason so many parts of gaming are getting more expensive at once is that the whole stack is under pressure,” James Sheridan, CEO of Sheridan Technologies and a former firmware engineer for HP, said. “The industry is being squeezed from both ends.”
Starting May 20, PlayStation Plus prices for new customers will increase in select regions. Due to ongoing market conditions, prices will start at $10.99 USD / €9.99 EUR / £7.99 GBP for 1-month subscriptions and $27.99 USD / €27.99 EUR / £21.99 GBP for 3-month subscriptions.…
— PlayStation (@PlayStation) May 18, 2026
Sheridan pointed to a list of pressures facing the gaming industry, including tariffs, rising hardware costs, and competition for semiconductors amid the AI boom.
Those cost pressures are being passed on to consumers through higher prices for games, consoles, and accessories. Sheridan said consumers are also being offered more ways to spend after they buy the base consoles and games.
Dan Mazei, a principal at All Tangled Roots and the former head of communications at Activision Blizzard, told Business Insider that rising game prices are also tied to the economics of big-budget development for major, high-budget games known as AAA titles.
“Game prices will continue to grow as development cycles remain both lengthy and monumentally costly,” Mazei said. “There aren’t margins to easily shave, at least with AAA titles, given aggressive revenue targets against the sunk costs.”
The price hikes haven’t hit every player equally. A gamer with an old console and offline games can still spend very little.
It’s players who want to keep up with the newest hardware, major game releases, online subscriptions, and high-end PC parts who are facing increases from nearly every direction.
And gamers are just getting ready for some hotly anticipated new releases for the rest of 2026, including the next installment of the Grand Theft Auto franchise.
“The early strategy was to acquire users and build habit,” Sheridan said. “Now, consumers are not just paying higher sticker prices, they are being offered more ways to spend after they enter the ecosystem.”
Sony, Nintendo, and Microsoft did not respond to requests for comment.
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