Sony will increase the ps5 price again.

[Kyuu]

Cerebralbore101 said:

Kyuu said:

Nintendo is facing challenges of their own:

1. They probably will fail to make as much profit per hardware unit as they did with Switch 1, even though it's notably more expensive.

2. Their userbase being physical bias is a problem, because cartridges cost up to $17 to make in addition to the 30% retailer fees. Their outrageous physical prices are an attempt to accelerate the switch to the cheaper (and more profitable) digital. Bluray in comparison is very cheap, plus Sony and MS both have much higher digital ratios.

Decent chance Nintendo consoles' profit margins will fall dramatically this generation even if Switch 2 manages to sell 150 million+ units. 

Source for retailers charging 30% now? 

I don't have a recent source, but I thought this is common knowledge? A quick search on the internet shows that retailers used to pay publishers anywhere between 50%-75% of the MSRP, which is effectively a 25%-50% fee.

It's still confusing to me though. Does this mean 3rd party publishers have to pay 30% to platform holders and another 30% to retailers? lol.

Here's a good read from December 2020:

https://www.serkantoto.com/2020/12/30/price-video-console-game-digital-physical/

According to this, platform holders only get 15% from 3rd party publishers for physical game. The figures probably vary depending on the game, country, retailer, etc.