Ampere Analysis forecast that next‑generation Xbox and PlayStation consoles could see sales decline of up to 40% over their first five years if launch prices exceed $1,000. The projection, based on a $1,000 launch price assumption, would represent a 38% reduction compared with the combined sales of the PS5 and Xbox Series X/S generation. The forecast follows expectations that next‑generation hardware will be more expensive to produce, with component costs rising and analysts anticipating launch prices above $1,000. Ampere Analysis estimated that combined sales of the PS6 and Xbox Helix could be 38% lower than the previous generation if the consoles launch in 2028 at the projected price. The firm projected that the overall console games and services market could be 12% smaller by 2031 compared with a scenario in which the consoles launch at $700. Ampere outlined three possible strategies for Sony and Microsoft: extending the current console lifecycle beyond 2028 to allow component costs to fall, subsidizing the $1,000 price through heavier hardware discounts, new monetisation models and a stronger digital focus, or redesigning the hardware to emphasize new form factors and use cases while reducing reliance on graphical improvements, a approach similar to Nintendo’s Wii pivot. Analysts noted that rising production expenses and higher anticipated prices may force the companies to adjust pricing, timing, or design decisions. If the $1,000 price projection holds, adoption rates for the next generation could decline relative to the current generation.