Will the Steep 11% Electricity Inflation See a Huge Slump in Console Sales?

With the latest inflation figures in the US rising sky high, the situation might become largely unfavorable for the gaming industry. Especially when it comes to the sales of popular consoles namely the PlayStation, Xbox, and Nintendo Switch.

According to a newly released report in March 2022, the consumer price growth has surged to a whopping 8.5 percent. Which is the highest in the last 40 years in the United States. However, when seen from the perspective of a gamer who wants to buy a new console, the coming days won’t be easy in any way. Because of increasing inflation, the cost of electricity has also surged, being above 11.1 percent right now.

Price increases over last year (CPI report)
Gasoline: +48.0%
Used Cars: +35.3%
Gas Utilities: +21.6%
Meats/Fish/Eggs: +13.7%
New Cars: +12.5%
Electricity: +11.1%
Food at home: +10%
Apparel: +6.8%
Shelter: +5.0%

The actual inflation rate is much higher than 8.5%. #Bidenflation pic.twitter.com/YlQRY9H8V2

— Real Mac Report (@RealMacReport) April 12, 2022

This will make it extremely difficult for many of the potential buyers of gaming consoles who were thinking to have a new device to enjoy the latest titles.

High inflation for electricity may result in massive drop in sales for PlayStation, Xbox, and Nintendo Switch

Forbes recently came up with the latest inflation figures showing how everything in the US is becoming more expensive. Due to the ongoing situation in Ukraine, the cost of living for the American citizens might become extremely challenging.

Whether it’s food, accommodation, or energy, the prices are shooting through the roof, in the last 40 years. Out of everything else, what might hurt the most is the 11.1 percent inflation rate for electricity. After all, it’s the most vital source of energy that powers all the major sectors, places, and devices in the US on a daily basis.

And when it comes to devices, video gaming consoles do fall in the category of electronic appliances. Thus, products like PlayStation, Xbox, and Nintendo Switch may become out of reach from now on.

WATCH THIS STORY: Top-Selling Playstation, Xbox, and Nintendo Consoles of All Time

Another reason for this possibility to turn into stark reality is that the consoles themselves take up a lot of energy to run.

According to JustEnergy, most of the latest generation of consoles require over 10 billion kilowatt-hours of electricity per year. In numbers, it’s nearly three times the previous devices’ requirement for operation.

READ MORE: What Does a ‘Single-Use Restricted’ PlayStation Mean? How Can Fans Acquire It?

Such consumption will simply mean that a common individual won’t be able to afford gaming consoles, even though they wish to buy them. When combining the high prices of the platforms with the rates of electricity, it will surely burn their pockets. Hence making a choice to do gaming will be really difficult.

At least as of now, there seems to be a blackout hovering on the future of gaming.

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