Report: PS5 manufacturing cost pushed to $450 due to competition and scarcity of parts

[Mr Puggsly]

Nu-13 said:

shikamaru317 said:

Not really. PS3 was sold at something like a $150-200 loss early gen as I recall. A $50 loss per console is chump change compared to that, especially since accessories like extra controllers, official headsets, etc. are all sold with quite a bit of mark-up (I believe game controllers cost less than $20 to make, but are sold for $50). It's also worth noting that more console game sales are digital than ever before, and the profit margin on digital games is higher than on physical games. And course they have PS+ subs and PS Now subs making them money as well. They can easily offset a $50 loss on hardware early gen between all of those sources of revenue.

A smaller loss than a colossal one doesn't make it small and it wouldn't be $50 (which would still be a lot).

Given they make more money on digital sales and subscriptions now, you would think they'd be a little more willing to sell at a loss. Especially MS since they have Game Pass.

Now that I think about it, it's very likely I may buy a Series X at launch simply because I won't need to buy games to enjoy it. I will just access content via Game Pass.