Bye bye bundles? Are the big console companies squeezing consumers?

From blockbuster acquisitions to product shortages, 2022 has been a turbulent year for gaming. Unsurprisingly, Sony and Microsoft are at the centre of these developments, as the two front runners of the industry. There have been a lot of quiet changes, notably since the release of Sony’s PlayStation 5 (PS5) and Microsoft’s Xbox Series X. The unpredictability of the market has left gamers and spectators wondering what the future of gaming holds. 

Bye-bye bundles

Gaming companies usually sell bundles and special edition consoles to customers when they release a new console. A bundle will typically include the console itself, a game (or two), and possibly an extra accessory as well. The draw is that companies offer bundles for the recommended retail price (RRP) of the standalone console, which means that customers get the game for free. So, when the PS5 and Xbox Series X launched in November 2020, customers were expecting a selection of bundles to choose from. But research conducted by GamingDeals.com reveals that Sony and Microsoft have reduced their bundle offerings considerably this time around.

In the two years since the PS5 and Xbox Series X launched, consumers have been offered a total of just three bundles. By contrast, the PS4 and Xbox One had a combined total of 27 bundles in the two years after their November 2013 release. This included special edition consoles, like the Xbox One Call of Duty: Advanced Warfare Official Bundle. Yet, the PS5 still hasn’t had a special edition console.

Microsoft has opted to directly email some of its customers and offer them an Xbox Series X as a “bundle”. But there was a catch. Customers also had to buy a game and an extra controller, for the standard price. Essentially, this meant there was no saving.

The lack of bundles means that it’s more difficult for customers to acquire consoles for reasonable prices. Resellers, who buy up stock and sell it for inflated prices are one of the main culprits for this. However, Sony has also decided to hike up its prices. On 25 August, the Japanese technology giant announced that it was increasing the RRP of its PS5 in several key markets. The new PS5 price is set at £479.99 in the UK (for the disc version), up from £449.99. Sony spared the US from the price hike, for now.

The effects of an ongoing supply crunch 

So, what’s caused the sudden decrease in bundles, and increase in prices? Inflation is partly to blame, but the ongoing semiconductor shortage has also dealt a major blow to the technology industry. 

Most of the products that we see on the market today rely on semiconductors, also known as chips. But skyrocketing demand for goods, paired with factory shutdowns and shipment delays have brought chip makers to a crunch point. There simply aren’t enough chips, or suppliers, to meet demand across industries, including cars, white goods and gaming. As a result, thousands of gamers are still relying on retailer wait lists and social media alerts to hunt down stock of the PS5 and Xbox Series X, two years on from their launch.

Phil Jones of GamingDeals.com, says: “These are unprecedented times not just for consoles, but the gaming market as a whole. While customers are still happy to pay whatever they need to in order to secure the console, the manufacturer will continue taking advantage of them.”

A (more) digital solution

In the midst of the hardware shortage, fans have noticed that the big tech companies have been pushing cloud gaming. Cloud gaming isn’t new, and companies like Google have all presented their solutions to the market. But Microsoft’s Xbox Game Pass has become one of the most recognised, and popular, services.

Gamers can access extra games through the monthly subscription, and stream games through the cloud, without needing a physical Xbox. Microsoft’s proposed acquisition of Activision Blizzard is expected to sweeten the deal, by offering popular titles, such as World of Warcraft and Candy Crush Saga, through its Game Pass as one-day titles. 

Sony’s answer to Xbox Game Pass is PlayStation Plus. The service offers cloud gaming as well, and allows multiplayer play, online, for owners of PS4 and PS5 consoles. With no signs of relief in the console shortage, some fans believe that cloud, and online, gaming is the future.

The future of gaming remains uncertain

The future of the gaming market is unclear, but recent history suggests that the industry is on a new path. That said, loyal gamers are still feeling the effects of shortages and price increases in the short term.

“It is safe to say that we will see more bundles for both consoles come out near Christmas,” says Phil Jones. “However, we may also see that as more bundles come out, acquiring a console by itself will get increasingly difficult. For the foreseeable future, if a consumer wants to purchase a PS5 or Xbox Series X new, they will have no option but to buy it as part of a bundle at an unnecessarily high price”.