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Forums - Sony Discussion - PS5 is being sold at a loss (officially confirmed)

Sony mentioned in the FY2020 Q3 statement that it is incurring a loss of every PS5 due to its decision to set a "strategic" price point for the next generation system. There's no specific dollar amount mentioned, but presumably the losses apply to both the PS5 disc version and the digital-only edition.

Source: https://www.gamespot.com/articles/ps5-is-being-sold-at-a-loss-sony-confirms-and-thats-not-unusual-or-cause-for-alarm/1100-6487076/

This isn't actually something unusual, because PS4 and especially PS3 were sold at a loss, too. On the other hand, Nintendo is making profit with every Switch being sold, right from the start.



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Nintendo is usually the only one making a profit out of the gate. Even when they made hardware of equal or better power than their rivals.



Bite my shiny metal cockpit!

This isn't exactly surprising. Sony has always done this. And why bring up Nintendo? Nintendo hasn't been pushing graphics for generations, now, so their products are cheaper to make. Even if they tried, no one's buying a $500 handheld. Well, not no one, but at lot fewer would.



This should never be a surprise for anyone. Both PS and Xbox sell at a loss.



A 4k capable machine for it's price? Of course it's selling for a loss.

The rise of digital would have most certainly softened the blow as apposed to ps4 and more so ps3s launches. They can easily eat it up.



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This is the most un news, news posted in quite some time.



That was very expected, especially for Digital Edition



 

Pretty sure it happens almost every gen.



                  

PC Specs: CPU: 7800X3D || GPU: Strix 4090 || RAM: 32GB DDR5 6000 || Main SSD: WD 2TB SN850

Weird thread with info from 3 days ago and that was already known. Plus the last line indicates the op's sole purpose of trying to stir the pot so to speak. Nothing to see here...



thismeintiel said:

This isn't exactly surprising. Sony has always done this. And why bring up Nintendo? Nintendo hasn't been pushing graphics for generations, now, so their products are cheaper to make. Even if they tried, no one's buying a $500 handheld. Well, not no one, but at lot fewer would.

Eh, they're pushing them on handheld, which is all they need (whether or not phones are more powerful). 

I wonder how the PS5 is being sold at loss. As in, is the hardware alone being sold at a loss even without retailer costs, or is it just the cost to build it that push it over. Because the PS4 actually would be sold at about a $19 profit if not for retailer costs, as well as other costs, that aren't based around the systems specs.

In the PS5's case, it's almost certainly both costs which are pushing it over it's MSRP, especially because the PS5 is actually fairly powerful relative to it's release window, whereas PS4 became outdated somewhat quickly. But, just saying, it's not always because "muh powerful system" that these systems sell at a loss.