Sony: PS5 Sales Top 20 Million Units

[DonFerrari]

Bofferbrauer2 said:

DonFerrari said:

Inflation always existed, and in Brazil for example very rarely below 4% a year, but even them electronics usually drop price every year for similar spec product, that is part of the maturity of production and cycle of renewal. I find it very hard to believe Sony would keep PS5 price the same (or increase) for 5 or 6 years. 6 months ago they already had confirmed they were breaking even on HW, so now they are likely profiting a little, sure they won't cut while they are outdemanded, but as soon as they are able to produce more than sell and the gain in sales (profits from HW, SW and royalties and subs) outdo the loss in profit from the cut on the project life of that console on the hand of customer they will cut.

That's because electronics had barely any inflation until 2020. Since then, electronics also have become a lot more expensive, as the fabs have constantly raised the prices of wafers and cut price bonuses for big and recurring clients. Add to this the fact that shipping has become much more expensive due to the fuel costs, and that several raw materials for the casings and some parts on the motherboards have become more expensive, too, and I don't see how the current consoles could drop in price anytime soon without dropping way below production price.

In the past generations, some part of the lower cost have come from cutting ports, but there ain't much you can really cut out apart from some USB ports, which these days will only save you several pennies each. And you can't really cut down on storage space to make up for it either, as it's already quite small with today's game storage space needs.

true, they will have to find a way if they don't want to eat loses.