As the dust settles after yesterday's presentation, the more I think about the more I believe me we are looking at an new generation of the more expensive kind.
I'll go as far as saying Sony will charge the infamous 599$ price tag, but this time it won't be a great problem. The market will accept it and the PS5 will be a success anyway. Here's why:
- Audience Demographics. The average video game console player is becoming older. This can be easily explained due to all the new players that entered the market during the 90s / early 00s and stayed to this day. People who were kids or in their teens during the PS1/PS2 days are now in their thirties or forties. An older demographic with an higher income can afford to spend more for thier hobbies.
- Longevity. Since Sony is the market leader with the PS4 they haven't got a great incetive push for frontloaded PS5 sales in the first years. If the demand is "too strong" they are more likely to face shortage problems (they could even have some problems to keep up with new exclusive software), also they'll incur into the risk of saturating the market too quickly, reducing as an effect the overall life cycle of the product. On the other hand an higher launch price would mean slower adoption rate at the beginning but more capability for price-cuts and to extend the sales curve in the long run.
- Positioning. In the long term, going beyond just a single generation, Sony doesn't aim to just beat Xbox in market shares, but rather they'll want to streghten thier position as the "premium" home console brand. In other words they want to convice customers they're the best choice and thier products have higher intrisic value compared to any competitor. If you think about it every element of the PS5 screams premium - from its exclusive technology (dual sense, fast SSD, 3D audio) to its exclusive "premium" titles, down to its futuristic console design. For this reason I believe that Sony won't aim to match the Series X price at launch, but rather they will use it as a "floor" and add premium to it.
- Cross-gen will sustain Sony in the early years. Even if the PS5 doesn't start to fly off shelves at the beginning it won't be a problem. Sony will continue to turn profits from the huge PS4 install base and PSN subscriptions. They don't have any catching up to do (as opposed to MS) and they can afford to enter the new generation at a slower pace.
So, how much do you think should Sony charge for the PS5 ? How much are you willing to spend for it?Last edited by freebs2 - on 12 June 2020