| Sephiran said: To be fair i don't really understand how its even possible for Sony to do big price promotions in the US this year, tariffs on countries in Asia are like 20-25 %, meaning Sony should be losing fairly big money on PS5 sales in the US at this price point. But maybe its a loss leader strategy at their part to lose money on hardware sales to get more people into the ecosystem. And they do have huge subscription revenue, huge third party sales, huge digital sales ratio and huge accessory sales, Nintendo has far fewer means to use that same loss leader strategy, because they have less avenues to recoup hardware losses. |
Apparently they moved a portion of their production outside of China to lower some of the tarrifs from the US? That's what I am reading online. Regardless... ps plus and to a lesser extent their accessories like the dual sense and the portal are mitigating loss in revenue. They are also reporting record revenue year after year from PS so expanding their base for more ps plus subs and higher software sales seems like a good strategy imo.
