Think is high-end console gaming is a choice, not a necessity. You can build a mid-end PC for the price of a PS5, and will save money with games and services since PC gaming is much less expensive. You can buy a Switch 2, which is not high-end, but at least mid-end. You can get a Series S another mid-end option that was notably less expensive than a PS5 and run almost all modern-looking games, albeit with lower settings

People buy PS5 because PS5 is a great console, and offers great value

Anyone who for some reason don't like PS5 will not find joy in any other offer in the market except for Nintendo systems with have a different library. At best, they will think PC gaming offers better value (which I agree), so it's better to go for PC gaming 

PS5 not only has the highest operation profit, but the second-best operation income-to-sales ratio. PS1 was a healthy business, but during PS2 it was clear they were trying to keep prices as low as possible in a way to remove competition from the market. It worked for SEGA, so why not chase the other competitors?

Their issue was taking their win for granted during the PS3 era, huge misstep here

PS4 was a healthy business, but they needed to recover consumers goodwill, so they kept prices for software and hardware as low as possible, but at least enough to break even. The system, however, benefited from both MS and Nintendo dropping the ball hard, which increased the user base and consumer spending

PS5 is the era where they are targeting healthier profit margins. Their hardware is not sold at a loss, and their software is not getting insane discounts like they were used to. While I'm more of a fan of the PS4 era, I'm already used to being ripped off by consoles prices since Nintendo already did the same during the Switch era, and Sony is simply following suit

Sony isn't interested in growing the PlayStation brand? Are you serious? Do you have any idea how hard it is competing against MS? One of the richest companies in the world. Sony couldn't solely focus on growth this generation because MS is willing to make very expensive hardware (XBSX which cost 700$ to manufacture) and then sell it for 500$. It was even sold for 350$ at one point. That's what they had to compete with. You can't just make cheap products and focus on growth if your hardware doesn't allow you to compete with the competition.

So, now that MS has explicitly stated they are not interested in competing with Sony for market share anymore, Sony can be a lot more aggressive with a plan for more growth. They don't have to worry about any competition now. Switch 2 won't be replaced for a long time, and that means Sony could literally just re-release a slightly better version of the PS5 and call it PS6 and still have the most powerful console (traditional closed platform console). Screaming and shouting disapproval on the internet does nothing if there's no other alternative to go to. 

We already knew the PS5 so far has made more money than 1 to 4 combined.

Once again, Michael Pachter is talking shit about Sony and praising cloud gaming. I might want to rethink my negative PS6 predictions, and I'm only half joking.

I saw that thread on resetera too.

from there:


He bought 500,000 shares in Playtika early in the year.
Its since fallen from like 7$ a share, to 4$ a share.

Now hes pushing others to buy the stock,.... because "the future of streaming mobile gambling games is right around the corner".




You cannot make this sh*t up.

How long have we heard that game streaming is right around the corner to massive success and takeover of the industry?
10 years? longer?

Nevermind about internet bandwidth being wasted on this sh*t, the server upkeep and costs of running servers.... compression artifacts, lag ect ect.
Meanwhile Pachter thinks that this can work, with the f2p model?

Nah..... streaming is too expensive to give away for free.
You have to make people pay for it, the same was a subscription service is done.

Do you want to own a console that plays games?

or

Do you want to "rent" a console, and stream that over the internet, for probably a higher cost than buying a game console (over a console life cycle) ? (and deal with input lag, and compression and worse graphics?)

that is the question.

Its just not going to work anytime soon.


You know what I think much more likely?
Indie games getting more and more popular.... people realizing they don't need insane graphics.... and people just more and more so, playing on their phones.

Stop trying to misrepresent the argument by saying that PC gamers wouldn't have bought a PS5 anyway. There seems to be some confusion on your part so let me lay it out for you. 

Let's say there are 400 million potential PS5 customers. Now let's say that 100 million of those customers are PC-Only gamers with a rig powerful enough to run current gen games on par or better than a PS5. The other 300 million are not PC-Only-Gamers. You seem to think that I'm arguing that by putting Sony exclusives on PC that Sony is missing out on getting some of those PC-Only gamers to become PC Gamers with a PS5 as a secondary game device. You then attempt to counter this strawman argument by saying "Those PC gamers wouldn't have bought a PS5 anyway, so Sony isn't losing any money". 

But that's not at all what I'm saying and you are either very confused or being obtuse to make a strawman argument. I'm saying that by putting PS5 exclusives on PC Sony is pushing console customers to become PC-Only-Gamers. This means losing out both potential former Xbox customers and on people who were PS Console gamers up until the PS5 launch. 

Trying to argue that Sony won't lose money with an inductive appeal is wrongheaded. It's like saying it snowed every Christmas the last ten years therefore it will definitely snow this Christmas. Meanwhile meteorologists with accurate climate models and deductive reasoning are predicting a warm dry winter due to climate change. Or to use another analogy, "We were able to mine 2 tons of gold from our mine the last 5 years therefore we will get 2 tons this year as well." Meanwhile the gold vein is all tapped out and the mine is days away from being dry. 

$700 million for 3 easy ports? Ok neat. Let's say by porting those three games they lose 5 million console buying customers. That means they lose out on the royalties from 3 games a year for $70 a pop that your average consumer buys. At a 30% cut Sony makes $21 per $70 game sold. After a seven year life cycle each customer would have bought 21 games on Playstation 5. Assuming that those are all 3rd party titles that's 2.2 billion in lost Royalty revenue, which is 90% profit BTW. We aren't even factoring in PS Plus fees or profit from 1st party games or microtransactions or accessory sales. If I were a company that could have made well over 2.2 billion and I only made 700 million I would not be happy. Now imagine what happens when they raise prices on consoles, port 6 or more games to PC, and slow down their 1st party game development. They wind up losing 10 to 20 million potential customers and that 2.2 billion loss turns into 8.8 billion. Again this isn't factoring in MTX, controller sales, or 1st party game sales. 

Their profits can climb higher and higher than ever before but if the foundation of selling PS Consoles crumbles, the entire financial tower will fall no matter how tall it is. 

It's funny that you should mention Switch dominating sales. Nintendo sold 155 million units mainly on the backs of 1st party exclusive software, indie games, and inferior ports from more powerful consoles. Seems to me that's a strong argument for 1st party exclusive games selling a console. 

When "market analysts" try to tell you that "console gaming has been on the decline since 2006", and that "nobody prefers physical anymore" they are doing the exact same thing. Abusing their position to push things that they or their buddies are already invested in. I absolutely wouldn't be surprised at all if Pachter quoted poor Key Card sales as proof that Physical games are on the decline. All while being completely blind to the idea that Key cards are not real physical games. 

Nevermind. Misread.