To get more people in and faster. People buying software beats hardware sales exponentially over time. The more console that are in more hands means crazy high numbers of software being sold with a 30% cut for Sony. They're trying to have their cake and eat it too but IMO they are making a mistake by not eating cost or lowering the price on the console now that the tech onside is cheaper. 

Why drop the hardware prices and focus on game sales and subscriptions?

Because sooner or later...

Here's hoping for a $349 and $399 boxing day price, followed by an official price cut in the new year keeping those prices.

They won't drop the price because people are still buying software on PS4 unlike previous generations there is much more cross gen activity with digital and Xbox isn't much competition. We should be thankful they drop the price for sales at all. 

My console friends group and I haven't bought jack this year, and have mostly been playing existing games or free Plus games. SNY isn't making squat off of us on PS4, whereas if we had PS5's that would be another story.

While they may be making more off some customers, they're starting to piss off others. To the point where I know a few of my friends will just pay for Plus (Extra) and wait for games on PS5, especially AAA games to land on there instead of pay $70. I'm also willing now for the most part to wait a while anyway just to pay less than $70 during launch, because they're starting to tick me off.

PS may be making a nice profit, but truthfully they could be making a lot more. Let's all hope the 3 year curse doesn't show up again with PS6.

Yes. That goes back to my reasoning for dropping the ps5 price. Alas, they aren't gonna get much more money out of me, much the same, buying games on sale every two weeks or so or a few indies here and there and subscribing to PS+. They put most of what I wanted to buy free on that service so perhaps they'll get less out of me for a while as I play through all them and replay some games that have free upgrade patches. 

What's the three year curse?

As for you and your friends, my ps5 nearly paid for itself, I got Returnal, Rift Apart, Demon souls and Dead Space remake on ps+ monthly plus loads of free remasters and PS5 patches, The last of us Part 1 for example is free with ps+. There's loads of third party titles on there too, like Cyberpunk if you haven't bought it already, it's actually playable now. Free games like Xdefiant and Throne and liberty. I've tried Xdefifiant and it's pretty great. I've only bought two full priced games so far that I couldn't wait for a sale on, Baldurs Gate 3 and Stellar Blade but fully intend to go back to the ways of waiting for good sales, like 50% off. The PS+ Catalogue is now starting to get PS5 only games and you're missing out on PS+ monthly by not upgrading soon which is now giving some big hitters too and ps5 exclusives. I'd say it's worth it as the system is so much better than ps4 PRO, it's like ps4 PRO 2. Everything is fairly much the same but it all works a lot better, saves you a load of gaming time which would be just waiting on loading screens and gives some nice benefits with more selection of new games. I'd say go all digital though and buy in at less than 400 euro if you can, buy the disc drive later if you need it. I bought one with the drive just incase I wanna buy some ultra HD films over the next four or five years. It's built for MP groups too, no need for Discord anymore. 

@EricHiggin And the free exclusive games are all really good by the way, not a dud among them..

I meant 3rd console curse. Dunno where my head was at there. Every brand screws up their 3rd console.

Most of us won't buy something unless its legit worth it. Sure we all have that fav thing we'll splurge on, but consoles ain't it. PS5 Slim (disc) above $400 isn't getting a buy.

Ya they were pretty decent in the early years of PS4, but they've slowly gone downhill. I personally never expected much for $60 per year, which is supposed to be covering the online cost, so 3 free games thrown in there made it a big surprise when SNY was dropping big AAA games in it.

Gotcha, 6 will be a multiple of 3. And yeah, I noticed over the last few months a big change to PS5. PS access recently changed only give the PS5 games of the week now instead of both, So I'd be expecting it to only decline. It's about that time for 9th gen to start going into full swing, perhaps next year with all the titles coming, I know it's been delayed this time but there is a lotta games incoming. 

On the bright side, if you wait til PS6 you'll be able to play through the 9th gen catalogue really cheap but that's four years at the very least away. I'm glad now that the PRO was priced so high cause PS6 will feel like a jump instead of a midgen upgrade. 

I mean if you count the fact they upped the price recently enough, then this effectively not much of a discount, which is not how you gonna sell the hardware in the middle of it's life, specially without tentpole titles in the middle of it's life.

Unless the discount comprises a game bundled with the console like Nintendo is doing with the Switch( with MK8 DX ... Again !)