The Era of Affordable Gaming Handhelds Is Ending: Price Surge Reshapes the Market

Portable gaming devices, which were positioned just a couple of years ago as an affordable alternative to desktops and consoles, are rapidly becoming more expensive. While the base model of the Steam Deck cost $399 in 2022, its price has now risen to $789. Nintendo is facing a similar situation: the starting price of the new Switch version is expected to be $499—more than the launch price of a disc-less PS5.

Experts attribute the price increase to several factors: rising costs of RAM and storage, trade tariffs, and the overall increase in component prices. Meanwhile, manufacturers like Valve and Nintendo had long refrained from raising prices but are now forced to follow market trends. The situation is further aggravated by the fact that even gaming desktops are becoming less affordable due to rising GPU prices and other components, which manufacturers are redirecting toward the AI and server markets.

The rising prices of portable devices are changing consumer perceptions. Where buying such a gadget once required little deliberation, it is now becoming a conscious choice between a gaming console and other major expenses. Additionally, the price hike may impact the gaming ecosystem: for example, Sony has already announced plans to limit the release of its exclusives on PC, reducing the appeal of devices like the Steam Deck.

The lack of competition also plays a role. No worthy affordable alternatives to Valve and Nintendo have emerged on the market. Even Microsoft, which introduced its Xbox Ally X handheld console, positions it as a premium product priced at $1000 rather than a budget alternative. Under these conditions, portable gaming devices risk becoming a niche segment for affluent users rather than a mass-market product.