A critique has emerged that handheld game consoles are entering price ranges that make them difficult to view as low-cost alternative devices. While they were seen just a few years ago as a way to play PC and console games at relatively low cost, a recent surge in prices for major products is changing the market’s character, an analysis said.

According to IT outlet The Verge on May 28 local time, the Steam Deck started at $399 when it launched in 2022, but has risen to about $789 for higher-end configurations. Nintendo’s Switch 2 has also risen in price, to $499 from the original Switch’s $299.

Handheld game consoles have maintained a position as reasonably priced devices between consoles and desktop PCs. The Steam Deck helped grow the market by enabling PC gaming in a portable environment at relatively low cost, and Nintendo’s Switch served as a benchmark for mass-market handheld consoles.

But the market environment has changed significantly. The outlet cited rising memory chip prices, higher storage costs, tariff burdens and higher oil prices as key factors. Price pressures have also increased in the desktop PC market, but it is more notable for handheld consoles because their original strength of low entry cost is being shaken.

A broader trend of price hikes across the industry is also continuing. The Verge’s Andrew Webster recently said, "Console gaming is slowly but steadily becoming a niche luxury." He also noted that Sony and Microsoft (MS) have raised console prices in succession, while Nintendo moved later to hike prices.

Price increases are steeper in the handheld PC gaming market. Microsoft is expanding handheld devices to counter the possibility that the Steam Deck could draw Windows-based gamers into a Linux environment, but it priced the 'Xbox Ally X' at around $1,000. The outlet said it was priced "like a high-performance PC, not a console."

Other manufacturers are showing similar moves. Lenovo Legion Go S has been discussed at prices in the $1,500 range, up sharply from its initial launch price, and forecasts have been raised that Lenovo Legion Go 2, its next product, could be priced close to $2,000. MSI Claw 8 AI Plus has also climbed to prices above $1,000.

As prices rise, analyses say the nature of handheld consoles is also changing. The Verge said they are no longer devices that let people play games anywhere without burden, but are becoming high-priced hobby devices that consumers must choose by giving up other spending.

There are also variables on the content side. One of the Steam Deck’s strengths has been the ability to play major PlayStation games in a portable environment, but the outlet also mentioned a forecast that Sony could reduce PC releases of big single-player games. If platform expandability weakens, the appeal of handheld consoles could also decline.

Ultimately, the recent trend shows the handheld console market moving past a brief mass-market phase toward a higher-priced, selective market. There is also an assessment that the market opened by the Steam Deck at around $400 in 2022 is fundamentally different from today’s market.

Accordingly, whether the handheld console market can restore price accessibility, not only compete on performance, is emerging as a key task for the market to return to growth.