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The Console Market Is Cooked

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Last week, Microsoft raised the prices of its Xbox consoles. The cheapest Xbox Series S model, originally positioned as a low-cost entry point in this console generation, will be $499.99 by August 1, 2026. Meanwhile, the PlayStation 5 Pro has jumped in price by $200 since its debut in 2024. The console market is changing, and it’s not looking good for consumers.

The smoking gun is the chip shortage caused by artificial intelligence and the construction of data centers across the world. Tech giants, including Microsoft, are buying up large quantities of memory in order to power their AI tools. This doesn’t seem like a short term shortage, either, with some experts expecting it to last until 2030.

Alongside the chip shortage, player habits have changed significantly over the last decade. Any handheld device can double as a game console now, and the younger generation is more likely to play Roblox on their phone than pick up a $600 console to play God of War. Grand Theft Auto VI will likely give console sales a significant bump, even with the price hikes, but monumental releases like GTA 6 don’t happen often.

https://youtu.be/4FatSqS3VYY

In this video, senior video producer Jake Dekker attempts to break down the volatility in the console market. He digs into the chip shortage, AAA development costs, inflation, the loss leader strategy, and how manufacturing costs adjust with scale. He sits down with Mat Piscatella, an industry analyst with decades of experience, to dive into the details. These price increases don’t happen in an economic vacuum, though. Wages have stagnated and everything has gotten more expensive across the board. Writer and professor Jake Steinberg shares insight on how these price increases are emblematic of wider economic decay.

Video game consoles likely won’t go away entirely, but as consumers get priced out of consoles, that audience will shrink over time. This will have innumerable implications and ramifications across the industry as platform holders, developers, and publishers reassess their strategies.



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Jagmas
3 minutes ago
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Round Rock, Texas
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Hideo Kojima's upcoming horror game OD is said to survive Microsoft's culling for the second time now

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Microsoft is going through another big 'reset', which is a nice way of saying culling, as it reportedly prepares to cut major games and studios as part of reassessing its videogame investments. But amid all the carnage, Hideo Kojima's OD is apparently unscathed.

According to IGN, a source familiar with Microsoft's plans implied the upcoming horror game remains in the works at Kojima Productions alongside Xbox Publishing. This news comes as Microsoft says it's "taking a fresh look at where we invest so we're focusing on our highest priorities." And honestly, I can't say I'm surprised that OD qualifies as one.

A screenshot from OD showing a scared person

(Image credit: Kojima Productions)

Kojima carries quite a bit of weight around this industry, just ask Geoff Keighley, but OD doesn't just feature his work—acclaimed director Jordan Peele is also reportedly collaborating with Kojima on this one. Add that to its star studded cast which includes the likes of Sophia Lillis, Hunter Schafer, and the late Udo Kier, and you get a game that's considerably harder to axe.

The proof is also in the pudding—this isn't the first time OD has escaped from harm. Almost exactly a year ago today, we saw unfortunately familiar circumstances play out when Microsoft laid off 9,000 employees, cancelling games like Everwild and the Perfect Dark reboot—just one moment in its year of shame. OD survived this as well.

Phil Spencer, former Xbox boss, signed the game, and his new replacement Asha Sharma has since shared her enthusiasm for the project: "I've got great artists and creatives that can pick a great game better than I can, and so I want to give it space, but most importantly, I think it just represents another kind of game." Kojima has previously said (in a classic Kojima way) that he doesn't even view OD as a game, instead being "a movie, but at the same time a new form of media." Sure, why not?

We won't know for sure whether OD is truly in the clear until Microsoft releases a definitive statement on the supposed upcoming layoffs, but if IGN's source is to be believed, OD will once again survive and carry on its already three-year long development.

2026 games: All the upcoming games
Best PC games: Our all-time favorites
Free PC games: Freebie fest
Best FPS games: Finest gunplay
Best RPGs: Grand adventures
Best co-op games: Better together



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Jagmas
3 minutes ago
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Round Rock, Texas
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‘Obsession’ Director Confirms Nikki’s Canon Fate After The Ending

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The ending of Obsession is rather bleak, but director Curry Barker takes things a step further, and confirms what happens to Nikki outright.

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Jagmas
3 minutes ago
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Round Rock, Texas
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Dune Awakening recaps its first year and fall plans and teases post-console plans in new video

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We’ve been teasing Funcom for ages about how PC gamers were just testing Dune Awakening before its “real” launch on console, but I don’t think I’ve ever fully taken the complaint seriously until today’s dev video, in which the devs take turns reminding us of everything the studio has changed over the last year and […]
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Jagmas
4 minutes ago
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Call Of Duty: Black Ops 7, Diablo 4, And More Games Are Free On Xbox This Weekend

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If you have some downtime over the 4th of July weekend and are looking for a game to play, Microsoft is bringing back its Free Play Days promotion, offering up some top titles to play for the low, low price of $0.

Call of Duty: Black Ops 7's multiplayer and Zombies modes are free now through July 6, while Diablo IV is free through July 7. Demonschool and The Stone Madness have free two-hour trials now through July 5. None of these games require an Xbox Game Pass subscription during the free period.

Free is a nice price.

Ikonei Island: An Earthlock Adventure is part of the Free Play Days promotion through July 5, but you'll need Game Pass Ultimate, Premium, or Essential.

This Free Play Days event comes at a tumultuous time for Xbox, as the company is expected to begin mass layoffs on July 6. Microsoft may close at least five studios as well, though it's possible other arrangements could be made that does not result in studio closures or game cancellations.



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Jagmas
6 minutes ago
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Round Rock, Texas
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World of Warcraft's on the quality-of-life boost warpath, with fixes including an auto-loot setting that's been mildly inconveniencing alt-lovers for years

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World of Warcraft's ramping up to its first major "big number" patch, Curse of Ula'tek—in addition to some interesting changes to how world bosses work, Blizzard's also taking aim at some quality-of-life features. And while these updates haven't all exactly been frictionless, I've gotta tip my hat to Blizzard, here—a lot of these are major plusses.

A recent blog details what Blizzard's already implemented, as well as what's to come. The most notable items here are fixes to auto-looting and area looting, but there's also been performance upgrades to the very-pretty Silvermoon City, faster Prey hunts, EXP buffs, and—in a move that's genuinely really important for the hardcore raiding scene—reduced repair costs.

But Curse of Ula'tek's got a few big upgrades to come, too. Profession knowledge points can now be reset once per profession, crafted housing decor should be cheaper, and the Voidforge will be accessible from Silvermoon City.

There's also UI improvements—and while I'm excited about certain bumps to the experience, like finally being able to see map coordinates without an addon, the most vital by far is the auto-loot setting, which no longer resets when you make a new character.

For those of you who've never had to experience the utter existential horror that is figuring out where a setting in an options menu is more than once, it was genuinely kind of annoying—WoW has a setting that lets you automatically loot everything from a monster with one click, instead of shift-clicking like some sort of peasant.

However, this option was character-specific for some arcane and unknowable reason, meaning any time you made an alt, you'd have the experience of looting your first monster, wondering if you were having a lagspike, remembering that you don't have auto-loot on, and then spending five unreclaimable minutes of your life finding and enabling the option again. No more.

There are also some bug fixes, the one I'm most excited for being: "a number of recurring patterns that could cause players to become stuck in outdoor world combat far longer than expected. This will not address all of these situations, but it should be far less common in Curse of Ula’tek."

I am not kidding when I say that 90% of the reason I play a rogue is to be able to Vanish my way out of combat without having to wait for whatever's chasing me to stop locking me out of my mount. That, and the big annoying smoke cloud I can ruin people's day with as part of my rotation.

Best MMOs: Most massive
Best strategy games: Number crunching
Best open world games: Unlimited exploration
Best survival games: Live craft love
Best horror games: Fight or flight



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Jagmas
18 minutes ago
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Round Rock, Texas
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