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The_Liquid_Laser said:
CosmicSex said:

This is incorrect.  Sony would not be charging this much money if they costs weren't as high as they are.  It will always be in their best interest to keep hardware costs down as it helps promote uptake of games and services which are a lot more lucrative to them.  The more people you can get into the ecosystem... the more actual profit you can earn.  They would much prefer to be able to sell the PS5 for 399.  Especially now that there is a game that could move as many units as GTA. 

This sounds good on paper, but the reality is that once they see people buying overpriced hardware, they are going to continue overpricing hardware.

For most of gaming history price cuts on consoles were the norm, but after the Switch launched, both Nintendo and Sony stopped cutting the price of the Switch and PS4.  This all happened before AI drove up hardware costs.  Sony and Nintendo simply made high profit margins on PS4 and Switch hardware, when hardware margins were slim to none in previous generations.  Basically, they figured out they could get away with charging more for hardware, so they did.

Same type of thing is happening right now with the PS5.  Expect baseline prices for hardware to stay high even after the AI bubble bursts.  If the console manufacturers can make money on hardware, then they certainly will.

This is incorrect.  The hardware is not overpriced.  Sony's own cost has increased.  Thats the part you are not understanding.  It was suggested that at 750 USD the Xbox Series X is still losing money.  NAAD prices are expected to double again next year.  That means a componet that used to cost Sony 80 USD will now cost them 320 USD.  None of you hypothetical evil corpration stuff really matters until actual costs are under control.  Until RAM prices and Storage prices return to normal, until you can actually build a decent PC without going broke.