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

I am relived that almost everyone in this thread sees this as non-news.

Selling the console at a loss to make profit on games has been the way for so long. Typically within a year or 2 they start to break even on hardware.

I remember being in 1st grade and my older cousin explaining to me that Nintendo was selling the SNES at loss because they make money on the games.



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A lot of weird posts in response to this. Confirmation of something only assumed, should always be "news" even if it was more or less known by most of us



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.

They even had to lower the 3DS price. 



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Jranation said:
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.

They even had to lower the 3DS price. 

This was also partly because the Vita was launching at the same price as the 3DS. 



I figured. The PS5 Digital is certainly losing the most.

Last edited by Mr Puggsly - on 08 February 2021

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Sony consoles follow the Gillette razor and blades business model at launch. The console eventually becomes profitable on HW too, but later. Relying more on 3rd parties, it tries to offer more computing power to please them. Ninty OTOH relies far more heavily on its 1st party exclusives and taylors its consoles design and power just on its own needs, this allows it to sell HW at a profit since launch.



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