Doesn't have to make sense. Sony can offer a $399 console just to grab market share, the 100 dollar difference between the 2 versions does not have to make sense to you or Pachter.
If someone buys 5 games at full price, a new $70 for next gen. With a 30% cut, that is $105 of revenue for Sony. More if it is a first party game, which Sony will release 3-4 AAA games every year.
If someone subcribes to PSN plus, that is $60 a year for Sony.
If someone chooses a PS5 over Xbox and gets either a controller, PSVR, PS camera, headset. What are the margins on those? Probably very high.
Just like how business class and economy class for airtickets doesnt have to make sense to you. Business class is like 5 times more expensive than economy, but does it cost the airline 5 times more to service a business class customer? No. They do it based on what price points different types of customers are willing to pay.
Last edited by Drakrami - on 02 October 2020
