Former PlayStation and Sega executives Shawn Layden and Peter Moore say console makers must innovate to justify rising hardware prices driven by AI chip demand.
Layden and Moore, in recent interviews, highlighted how the cost of making consoles is increasing sharply because AI companies are buying up chip supplies.
Layden warned that a $1,000 console would slow adoption, especially with few launch games available. He argued that software must change, noting that game variety is narrowing into familiar categories like zombie or space marine titles.
Moore said hardware companies are unlikely to profit from consoles themselves and may explore service bundles or abandon dedicated hardware if technology allows direct streaming to TVs.
Layden also expressed hope that Xbox regains its competitive edge, recalling the excitement of past platform rivalries with PlayStation.