The Switch 2 is in trouble IMO

[IcaroRibeiro]

Kyuu said:

Random_Matt said:

Someone mentioned the switch 2 is region locked in Japan because of the yen.

Then what stopped Sony from also region locking and keeping prices reasonable?

IcaroRibeiro said:

PS5 prices in Japan are reflex of poor software sales. I'm sure Switch 2 will be sold at loss (I'm expecting a loss of 70-80 USD per unit) because Nintendo expect to recover the costs in few years selling games. By a significant margin most of the Nintendo software sales are from first party titles with high profit margins 

Sony needs to sell many times more games than Nintendo per console to have similar profit from Software. In reality console to software tier ratio for PS5 is so bad Sony didn't have a choice but to increase the price until they sold the console at profit. The way it were doing each PS5 unit sold was actually a liability instead of an asset lol 

I doubt people bought the expensive PS5 to then sit down and play nothing on it. Until we know how much Sony makes from F2P, digital software, and subscription services in Japan, physical game tie-ratio is an insufficient metric. Do keep in mind that many PS5's were imported by China, so a good chunk of spending and software sales data is omitted.

Of course revenue per unit includes subscriptions and in game purchases, if not the situation of PS5 in Japan would not only be problematic but abysmal

But it doesn't change the price increase was to offset production costs. PS5 units were not generating enough money, so Sony increased the priced to at least make some profit with the hardware purchases themselves