GymratAmarillo said:
There is a difference between fluctuation and what is happening with Japanese economy right now so it actually explains a lot, xbox that is famous for waiting a little longer before increase prices thanks to their huge economy did it first this time because Japan isn't a good market for them. People expecting Sony to hold just for the people economy don't really understand how companies work and that also applies to Nintendo and pc parts producers. You can't compare the ps3 situation because at that time Sony was literally dying, every year they were closer to red numbers and they did what they needed to survive, the ps4 ended saving the whole company, now their economy is stronger thanks to shifting to entertainment. Are the dramatic changes that you are expecting for Sony to sell consoles at a loss just because? If the ps5 fails to sell 100 million it shouldn't be a surprise to anyone, the generation started in the middle of a pandemic that not only fucked economy but also pushed back every major project in existence. Developers aren't pushing new consoles because they need to make as much money as possible (thanks to the economy) so they keep releasing on ps4 like Activision, Capcom, Ubisoft, EA, etc. Sony took 2 years into the generation to stop doing it. Yes for many money is a problem but for the rest that don't give a damn about story games the question is "Why?", why buy a ps5 when they can play COD, Fifa and fortnite on ps4? Let's not forget that specific group of people represented 80% of the ps4 playerbase. Btw, If China buying the ps5 at a faster phase than the ps4 after almost 30 years of playing on pc (and more recently on mobile) thanks to their government isn't proof that doesn't matter how big pc is there will be always a market for consoles, then I don't know what it is lol. |
Did I imply that they have to sell at a loss? I'm not "expecting" dramatic changes. I'm only acknowledging them as a possibility "IF" Sony want to keep their console line strong and growing (like Nintendo clearly does). But the dramatic changes aren't entirely on Sony, so I could have worded that better. An example of a dramatic change is microchip pricing trajectory returning to how they were in the previous generations (or Sony going with completely different chipsets that are cheaper but less mainstream). Another example is Sony exiting PC support altogether and returning to true-exclusivity.
I didn't imply that consoles will disappear anytime soon. I was among the few expecting PC and Playstation to both grow simultaneously this generation, but the basis of my argument was that the PS5 had to follow a fairly similar pricecut trajectory to PS4's. Since that didn't happen, and instead prices continue to climb overall (even outside Japan), a lot of new gamers as well as existing console gamers are going PC.
At PS5's launch, things were looking so good for Sony as they managed to break their historic record in several areas including profitability. To put things into perspective: historically, when a console launched, companies reported significant losses due to R&D costs and hardware losses. A few months later, PS5 (standard) made profit from hardware sales despite COVID and shortages.
I do not "expect" or even recommend Sony to sell at a loss. But the economical changes go much further than weak yen. The main problem is that PS5's production is seemingly not dropping in price 4 years later despite Sony going for smaller dies that save production and logistical costs. In my mind early in the generation, the worst case scenario for Japan would have been if Playstation prices remained at the launch price (which would have still been unprecedented for a console except arguably the Switch, which at least didn't go up in price). So the weaker yen alone does not explain the 82.5% price increase, it would have explained prices remaining the same (just like the Switch). There is a lot more going on than exchange rates and weaker yen. But regardless of the reasons (COVID, wars, etc), this generation has been a real disappointment. Not saying it's Sony's fault or anything like this.
As for China. The trends over there are not really indicative of anything:
1. Consoles didn't officially launch in China until the PS5 (or shortly before it). Since the console playerbase is very small there, growth potential is absolutely huge. Whether or not this potential can be reached is a separate question.
2. China as a country/economy has experienced rapid growth not seen before in human history. So it's really the one market where my original "Playstation and PC will grow together" sentiment (which I held on to until last year) may still apply to without the requirement of cheap prices and true system selling exclusives.
Last edited by Kyuu - on 31 August 2024
