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Kyuu said:
LGBTDBZBBQ said:

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!

I'm sorry people, but the only opinion that counts is that of the guy who claims to be an analyst and who predicted that the PS4 would never overtake the Wii. I've forgotten his name, but he's a sure bet.