I don't think impossible to see Sony giving a price cut to accelerate the sales if the supply outdo demand when they ramp up production

Like some others have mentioned in here, it also depends on how long inflation drags on for.

Yet two years ago it had barely started, last year was only a minor problem, and now is becoming more of a concern mid 2022. So there's nothing saying that the situation can't or won't reverse itself in a similar amount of time, which would put us about mid 2024, being either mid gen timeframe or not long thereafter.

Now if things don't improve and inflation sticks around as is for years and years, or get's worse, then you can almost certainly forget about upgraded consoles this gen. As for price cut's, not until Slim models arrive anyway, and even then they might end up $500 still to try and make up for extended subsidy losses sustained during this period.

Good, I dont mind a longer generation.

One thing that caught my attention is Sony's latest revenue forecasts showing some annual decreases in hardware revenue for the next few years. I guess hardware sales can still increase despite the decrease in revenue, via a combination of price drops and pushing more PS5DE's. But unless Sony is underestimating demand or overestimating the shortage, it doesn't look like PS5's peak year will approach 22 million.

I also don't see why Sony would drop the PS5 price anytime soon. Their HW revenue forecasts don't seem to match their HW sales expectations. Or at least that's how I felt about it, maybe I miscalculated.

One thing that caught my attention is Sony's latest revenue forecasts showing some annual decreases in hardware revenue for the next few years. I guess hardware sales can still increase despite the decrease in revenue, via a combination of price drops and pushing more PS5DE's. But unless Sony is underestimating demand or overestimating the shortage, it doesn't look like PS5's peak year will approach 22 million.

I also don't see why Sony would drop the PS5 price anytime soon. Their HW revenue forecasts don't seem to match their HW sales expectations. Or at least that's how I felt about it, maybe I miscalculated.

Meanwhile Microsoft is too shy to announce any sale numbers because they dont like to be last place. So, they'll announce their MAU.

Inflation always existed, and in Brazil for example very rarely below 4% a year, but even them electronics usually drop price every year for similar spec product, that is part of the maturity of production and cycle of renewal. I find it very hard to believe Sony would keep PS5 price the same (or increase) for 5 or 6 years. 6 months ago they already had confirmed they were breaking even on HW, so now they are likely profiting a little, sure they won't cut while they are outdemanded, but as soon as they are able to produce more than sell and the gain in sales (profits from HW, SW and royalties and subs) outdo the loss in profit from the cut on the project life of that console on the hand of customer they will cut.

I'm sure it's been pointed out a ton already but you do have to wonder how many units they would have sold if the PS5 wasn't so severely supply-constrained. It also makes me wonder if Sony will ride the PS5 for a longer period of time than even the PS4 or PS3 gens (both going 7 years before their replacements launched). Considering the supply issues that persist, maybe we won't see a PS6 until 2028 or 2029 or something like that. Only time will tell I suppose.

That's because electronics had barely any inflation until 2020. Since then, electronics also have become a lot more expensive, as the fabs have constantly raised the prices of wafers and cut price bonuses for big and recurring clients. Add to this the fact that shipping has become much more expensive due to the fuel costs, and that several raw materials for the casings and some parts on the motherboards have become more expensive, too, and I don't see how the current consoles could drop in price anytime soon without dropping way below production price.

In the past generations, some part of the lower cost have come from cutting ports, but there ain't much you can really cut out apart from some USB ports, which these days will only save you several pennies each. And you can't really cut down on storage space to make up for it either, as it's already quite small with today's game storage space needs.