the-pi-guy said:
As mentioned before this was before the chip price hikes. TMSC, Samsung, etc have been putting out pretty hefty price hikes on their chips this year, with more coming next year. The PS5 price reductions involved reducing the amount of metal they're using. It doesn't affect most of the cost (APU, RAM, Optical Drive, etc.) They're saving maybe a couple of dollars on these weight reductions.
Currently they're not. They posted a pretty substantial drop last quarter citing exchange rates.
Agreed. There's a big difference between arguing that Sony is right for raising the prices, and understanding why they did it. I'm not saying that Sony was right for raising prices, but there are some pretty big reasons why they did it. The economy is kind of in a flux right now, and Sony wants to keep making as much on the PS5 as they were before. |
Azzanation said:
Sony started making profits on the PS5 when they sold around 10m consoles Sony Finally Turns a Profit on $499 PS5 - ExtremeTech This isnt about inflation or economics. Sony's PR will be to defend this decision however when we look between the lines lets see what we find. Sony has already reduced its own cost on PS5's by reducing the weight and are planning on doing this again with a newer model meanwhile raising the costs. Mean while the Series X is still using the launch model with zero changes. Xbox are not planning on raising the price on a console that would cost more to manufacture. Yes MS can eat the costs but so can Sony. Sony earns billions each quarter and is far from a damaged brand. Playstation is constantly turning record profits and so raising the console price is not justified. They are happy to affect most countries instead of the US because the US is the main market in the world. Raising their price in the US while their direct competitor is just as strong in the US would be brand suicide. Sony know that the console will sell regardless, weather its sales from customers or sculpers. that $50 price hike is a huge turn over long term. Consumers shouldnt have to pay for a corp constantly making record billions. Same goes for all brands. |
These businesses aren't fully guaranteed input costs or sales. Not long term anyway.
PS5 was just starting to make a profit back then, yet the cost to produce PS5 went up shortly after, and the price to the consumer didn't. Not until recently. The changes made to PS5 saved next to nothing in material cost. Shipping weight is where there would be a little savings.
I wonder how much Sony lost that entire time? I wonder if Sony more recently looked deep ahead and see's things getting worse, knew they couldn't hold out too much longer, so decided to make the move sooner than later? Might as well rip the band aid off if you're going to have to.
Is XB and MS too greedy since they're not charging $199 and $399 for S and X? We all know they could afford to. Why isn't Game Pass cheaper? I'm pretty sure MS could've left the XB One Kinect in the box and still charged $399, matching PS4. Why did they remove Kinect then charge $399?
How much does a business have to eat or subsidize to be a good worthy company?
