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Kyuu on 13 August 2023
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LGBTDBZBBQ said:
Megiddo said:

Nah, that's not aggressive at all. Aggressive would be like the PS4, when Sony permanently cut the base PS4 price by 5000 yen in Japan and permanently cut by $50 in USA less than two years into the life of the console. It then had a slim model in its 3rd year for $100 off the original PS4 price. Sony was really aggressive for PS4 but for the PS5, they've been the opposite since they actually raised the base MSRP in many regions around the world. 

Sony SIE made around $350m profits in Q1 while Nintendo made around $1.35b in the same timeframe, and yet Sony still cut the price of PS5 for the sake of moving PS5 units. That sounds too aggressive in my opinions.

Apples and oranges.

1. Nintendo's operating profit in an actual (aligned-ish) similar timeframe (FY2019 Q1) was about 25 billion yen vs Playstation's 52 billion yen. Nintendo's FY2020 Q1 profit was like 5 times higher YOY due in part to the lockdown boom (which other platforms couldn't capitalize on nearly as much) and Animal Crossing's launch/explosion.

2. Playstation's profitability among several other aspects have never been better since PS5 launched despite the economical challenges.

3. Nintendo's real profit driver isn't hardware. It's their 1st party software which annually sell a lot more (twice~ or more) than Sony and retain their prices a lot better. If there is one thing where Nintendo objectively crushes Sony, it's this.

4. Mergers and Acquisition expenses are apparently partly factored into profitability. I'm not sure how this exactly works.

5. Actually-aggressive pricing didn't do shit for the Series S. So much for PS5 facing a much stronger competition compared to PS4! "PS4 only did well because the Xbox One and the Wii U sucked. PS5 is facing much stronger competition" I was told.

PS5's pricing so far isn't aggressive no matter how you spin it. Let me remind you that everyone whined and bitched about the $70/€80 game price, and they whined again (myself included) when the PS5 got a price hike everywhere outside the US, claiming Sony is being super greedy and evil. Funny how quickly the narratives shift!

Last edited by Kyuu - on 13 August 2023