CES 2016: AMD hints at Xbox One and PS4 price drops on the horizon

The Xbox One and PlayStation 4 could be heading for a significant price drop, with next generation chips bringing the cost of production down.

AMD are a huge player in the console market, with its chips powering the key players including Sony and Microsoft, and the expense of this component is a factor in the overall price point of the games machines.

AMD’s CEO Lisa Su, talking at a CES round-table with techradar in attendance, confirmed that there was going to be an opportunity in the current generation’s life-cycle to develop new technology that will allow for a price drop without impacting on performance.

“The consoles work on a five to seven year strategy, that’s the lifetime for these consoles,” said Su.

“Without talking about any particular party’s console – there will be opportunities to cost-reduce.

Price cuts, more sales

“Consoles tend to be very sensitive to price point, we see that as price comes down console [sales] volume goes up, and that will afford an opportunity to do that in this cycle.”

READ  Twitter cocktail machine turns your tweets into mixed drinks

Although there was no time frame put on this move to a new chip architecture, we are now heading into the third year of the current generation, fast approaching the likely mid-point of the life-cycle.

There have traditionally been mid-production changes to console manufacturing that lowers costs, so this isn’t a huge surprise. But the prospect of a major drop for Xbox and PS4 will be encouraging for many who find the current price steep.

There are no comments yet

× You need to log in to enter the discussion