Nope, not really. You are forgetting in USA the taxes comes at the purchase moment and isn't part of the 499 price, for Europe the price have the tax inside them.

Let's say UK/Euro tax is about 10%. So that means for the 525USD (499 euro) at the time of launch the equivalency would be 472.5 so Sony was making 27.5 less on the console sold in europe versus USA. The 582 USD (549 euro) would mean equivalency of 524 so 24 more profit. If the tax is higher than that, let's say 16% then it would be the same, any higher they would still be losing compared to USA. Then also if we consider different regions would have higher or lower SW attach ratio that could also impact the analysis.

It's actually easy to check that. Sales taxes in Euroland are between 16% and 26%. Prices also include store margins (there are laws against shops selling regular stuff below self costs). So Sony/MS/Ninty gets about 70% at best of what is advertised in shops.

Sony probably lost some money prior to the price hike and now gets away roughly +/- 0

In recent weeks, Microsoft has been losing a shi*ton of money selling their consoles at 200/300 Euros (hence why Spencer threw in that $100-$200 loss per console recently, and that was before the bigrebates)

Nintendo makes a shi*ton of money on hardware, that thing is dirt cheap to manufacture.

And looking at the Covid situation developing in China, it could very well be that production of consoles is going to tank in 2023.

Thank you for the additional data. So it seems that even after the price increase they still make significantly less money (perhaps even lose) in console sold in Europe, that would explain why with limited supply they prioritize USA.

Well it solely depends on their ability to produce them

Next year is going to be interesting in the DS vs Switch battle because DS fell really hard in it's 7th year and I don't think Switch dip that low.

Link to the article here.

PS5 vs Xbox Series X|S vs Switch Launch Sales Comparison Through Week 108

This weekly series compares the aligned launch sales of the PlayStation 5, Xbox Series X|S, and Nintendo Switch.

It should be noted the Nintendo Switch and Xbox Series X|S had a worldwide launch, while the PlayStation 5 launch was split over the course of two weeks. Also, the Nintendo Switch launched in March 2017, while the PlayStation 5 and Xbox Series X|S launched during the holidays in November 2020.

PS5 Vs. Xbox Series X|S Vs. Switch Global:

1. Switch: 32,509,418
2. PS5: 28,255,097
3. XSX|S: 20,255,744

Through the first 108 weeks available worldwide the Nintendo Switch is ahead of the PlayStation 5 and Xbox Series X|S. The Switch is ahead of the PS5 by 4.25 million units units and is 12.25 million units ahead of the Xbox Series X|S. The PS5 is ahead of the Xbox Series X|S by 8.00 million units.

The Switch has sold 32.51 million in 108 weeks worldwide, while the PS5 sold 28.26 million units and the Xbox Series X|S 20.26 million units.

Looking at the marketshare through 108 weeks, the Switch is in the lead. The Switch has a 40.1 percent marketshare, the PS5 sits at 34.9 percent, and the Xbox Series X|S at 25.0 percent.

PS5 Vs. Xbox Series X|S Vs. Switch US:

1. Switch: 11,371,213
2. PS5: 10,696,791
3. XSX|S: 9,665,370

Through the first 108 weeks available in the US the Nintendo Switch is ahead of the PlayStation 5 and Xbox Series X|S. The Switch is ahead of the PS5 by 0.67 million units and is 1.71 million units ahead of the Xbox Series X|S. The PS5 is ahead of the Xbox Series X|S by 1.03 million units.

The Switch has sold 11.37 million in 108 weeks in the US, while the PS5 sold 10.70 million units and the Xbox Series X|S 9.67 million units.

Looking at the marketshare through 108 weeks, the Switch currently leads. The Switch has a 35.8 percent marketshare, the PS5 sits at 33.7 percent, and the Xbox Series X|S at 30.5 percent.

PS5 Vs. Xbox Series X|S Vs. Switch Europe (107 weeks):

1. PS5: 9,255,666
2. Switch: 8,252,846
3. XSX|S: 5,298,163

The PlayStation 5 has been available for one week less than the Xbox Series X|S in Europe. After 107 weeks the PS5 is ahead of the Switch by 1.00 million units and is 3.96 million units ahead of the Xbox Series X|S. The Switch is ahead of the Xbox Series X|S by 2.95 million units.

The PS5 has sold 9.26 million in 107 weeks in Europe, while the Switch sold 8.25 million units and the Xbox Series X|S 5.30 million units.

Looking at the marketshare through 107 weeks, the PlayStation 5 currently leads. The PS5 has a 40.6 percent marketshare, the Switch sits at 36.2 percent, and the Xbox Series X|S at 23.2 percent.

PS5 Vs. Xbox Series X|S Vs. Switch Japan:

1. Switch: 7,809,703
2. PS5: 2,220,130
3. XSX|S: 398,179

Through the first 108 weeks available in Japan the Switch is ahead of the PlayStation 5 and Xbox Series X|S by a wide margin. The Switch is ahead of the PS5 by 5.59 million units and is 7.41 million units ahead of the Xbox Series X|S. The PS5 is ahead of the Xbox Series X|S by 1.82 million units.

The Switch has sold 7.81 million units in 108 weeks in Japan, while the PS5 has sold 2.22 million units, and the Xbox Series X|S 0.40 million units.

Looking at the marketshare through 108 weeks, the Switch currently leads. The Switch has a 74.9 percent marketshare, the PS5 sits at 21.3 percent, and the Xbox Series X|S at 3.8 percent.

There are also things one doesn't take into account at first. Years ago, shippping a container from China to Europe was around $2800. Now it currently sits around $10500. Getting the contents of the containers from the harbour to places also increased in price greatly. In the end, Sony was right with the price increase from their point of view.

And shipping to Europe is considerably costlier than to USA right?

I just had to check the whole thing and prices have been significantly decreasing.

Container shipping basically is a logistical portto-port thing, distances and tme are not that decisive. I think shipping a container to either Europe or west coast USA only differs by roughly 10-15% (in favour of USA).

nothing that massive but everything adds up.