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- Primary Subject: PlayStation 2 Sales & Modern Hardware Economics
- Key Update: Former PlayStation executive Shawn Layden argues the PS2’s record sales were driven by falling console prices—something he believes is unlikely to happen in future generations due to semiconductor shortages and AI-driven demand.
- Status: Confirmed
- Last Verified: July 3, 2026
- Quick Answer: Shawn Layden believes the PS2’s unmatched success was heavily enabled by years of price drops, something modern consoles may struggle to replicate.
Former PlayStation executive Shawn Layden believes the PlayStation 2's position as the best-selling console in history may be more secure than ever, not because future consoles can't deliver great games, but because the business conditions that helped the PS2 reach nearly 160 million sales no longer exist.
Speaking on the PSI podcast, Layden argued that today's hardware market has changed dramatically compared to the early 2000s.
The biggest reason, according to him, is the increasing pressure on the semiconductor industry.
Modern console manufacturers are competing for the same chips needed by some of the world's fastest-growing technologies, making it much harder to manufacture hardware as cheaply as they once could.
"We know the chip and semiconductor market is under a lot of pressure right now," Layden explained. He added that, "After cryptocurrencies, AI is now obsessing manufacturers. So, console manufacturers are having trouble achieving economies of scale.
As a result, hardware prices aren't falling anymore."
How Is AI Changing The Console Business?
According to Layden, AI isn't directly making consoles more expensive but has fundamentally changed the economics behind building them.
Companies developing AI models require enormous amounts of advanced processors, graphics hardware, and memory.
That surge in demand places additional strain on semiconductor manufacturers, leaving console makers competing for production capacity alongside some of the biggest technology companies in the world.
Even before AI became the industry's latest obsession, cryptocurrency mining had already exposed how vulnerable chip supplies could become when demand suddenly exploded.
AI has only intensified that competition, meaning hardware manufacturers can no longer cut production costs as easily throughout a console generation.
In previous generations, improvements in manufacturing and larger production volumes usually translated into meaningful retail price cuts.
Those same cost savings are much harder to find today, leaving companies with far less room to lower console prices.
What Made The PS2 Such A Sales Phenomenon?
Layden argues that one of the biggest reasons the PlayStation 2 became the industry's all-time sales leader had nothing to do with launch day.
Instead, much of its success came years later. "Take the PS2, the best-selling console of all time with nearly 160 million units sold," Layden said.
"If you look at the numbers, a large proportion of sales came after the console's price dropped to $199. The price cut boosted sales, and that's probably something we won't see in the current generation."
It touches on something that doesn't come up enough when people talk about console generations. The PS2 certainly benefited from one of gaming's strongest software libraries, but it also became dramatically more affordable over time.
Multiple hardware revisions, attractive bundles, and steady price reductions made the console accessible to millions of people who had skipped it at launch.
It's much harder to build that kind of late-generation momentum when hardware remains expensive throughout a console's lifecycle.
Why Doesn't the Old Console Strategy Work as Well Anymore?
Historically, console manufacturers relied on a fairly predictable pattern.
New systems launched at premium prices for early adopters before gradually becoming cheaper as manufacturing costs declined.
Lower prices encouraged a second wave of buyers, including families, budget-conscious players, and even owners of competing platforms who were willing to purchase another console once the price became more attractive.
Layden believes that cycle has largely broken down. If manufacturing costs refuse to fall because semiconductor demand remains elevated, companies lose one of their most effective tools for expanding their audience.
Instead of gradually becoming cheaper, consoles can remain expensive for much longer, and in some regions, prices have even increased during the current generation rather than decreased.
That completely changes how hardware generations mature. Reaching a massive install base becomes significantly more difficult when millions of potential buyers never receive the lower entry price previous generations eventually offered.
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