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Forums - Sales - Black Friday Week USA. PS5 #1, Switch 2 #2, Nex Playground #3

Sephiran said:

To be fair i don't really understand how its even possible for Sony to do big price promotions in the US this year, tariffs on countries in Asia are like 20-25 %, meaning Sony should be losing fairly big money on PS5 sales in the US at this price point. But maybe its a loss leader strategy at their part to lose money on hardware sales to get more people into the ecosystem. And they do have huge subscription revenue, huge third party sales, huge digital sales ratio and huge accessory sales, Nintendo has far fewer means to use that same loss leader strategy, because they have less avenues to recoup hardware losses.

Apparently they moved a portion of their production outside of China to lower some of the tarrifs from the US? That's what I am reading online. Regardless... ps plus and to a lesser extent their accessories like the dual sense and the portal are mitigating loss in revenue. They are also reporting record revenue year after year from PS so expanding their base for more ps plus subs and higher software sales seems like a good strategy imo. 



 

mM
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Sephiran said:

To be fair i don't really understand how its even possible for Sony to do big price promotions in the US this year, tariffs on countries in Asia are like 20-25 %, meaning Sony should be losing fairly big money on PS5 sales in the US at this price point. But maybe its a loss leader strategy at their part to lose money on hardware sales to get more people into the ecosystem. And they do have huge subscription revenue, huge third party sales, huge digital sales ratio and huge accessory sales, Nintendo has far fewer means to use that same loss leader strategy, because they have less avenues to recoup hardware losses.

You'd think so. But there fiscal report from just a few weeks ago said they expected to lose less money on hardware this year. "Decrease in losses from hardware."

So they can't be losing an insane amount with these deals, and unlikely it's a case of they changed their plans as the big discounts started just 10 days after they made this report.



trunkswd said:
leo-j said:

I think this black friday result along with the one in Europe speaks more about the playstation vs xbox situation as opposed to Nintendo doing less than anybody. With Xbox basically removing itself from the picture with very bare minimum discounts, and very low advertising vs playstation, the general consumer had a clear choice for the hardcore gaming market... and that was a $399 ps5 or a $449 ps5 with fortnight. VS a series S a way weaker console which was barely marketed at a similar or higher price than the ps5 digital. TBH that imo is the bigger story. This is a clear indication that Microsoft is focusing on selling more software vs hardware, as an example the series S was as cheap as $199 a couple years ago, and is currently $399 for the 2025 holiday season.

I will say,

Nintendo did drop the mario kart bundle to $449 at major retailers... I assume they did not expect playstation to see the sales it is seeing 5 years into the generation. But this is huge for Sony imo. And with GTA VI being the big game for the holiday season in 2026, they are going to sail past ps4 life time sales imo. 

I don't think that was Nintendo dropping the price of the Mario Kart World bundle to $449, but rather retailers. It started with Walmart dropping the price, followed by other retailers up to several hours later.

wonder what the profit margin is for retailers on the mario kart bundle then? It's still $449 from what I can see. 



 

mM
Zippy6 said:
Sephiran said:

To be fair i don't really understand how its even possible for Sony to do big price promotions in the US this year, tariffs on countries in Asia are like 20-25 %, meaning Sony should be losing fairly big money on PS5 sales in the US at this price point. But maybe its a loss leader strategy at their part to lose money on hardware sales to get more people into the ecosystem. And they do have huge subscription revenue, huge third party sales, huge digital sales ratio and huge accessory sales, Nintendo has far fewer means to use that same loss leader strategy, because they have less avenues to recoup hardware losses.

You'd think so. But there fiscal report from just a few weeks ago said they expected to lose less money on hardware this year. "Decrease in losses from hardware."

So they can't be losing an insane amount with these deals, and unlikely it's a case of they changed their plans as the big discounts started just 10 days after they made this report.

I wonder if Switch 2 being tied to Nvidia means the profit margins on the hardware is as useless as it is for Nintendo. If that is the case, Sony going with AMD seems the better strategy.



I had never heard of the Nex Playground until last week but it seems to be a Kinect like device which is cool since the last version of the Kinect came out 12 years ago so there's been plenty of time for that technology to get a lot better so nice to see a company take another crack at it. Xbox Series not even being the 3rd best selling console in the US during black Friday week is just sad, during black friday 2017 it wasn't far behind the PS4 in the US. Also the Switch 2 makes up a similar percentage of sales as the Switch 1 did back in black friday 2017 so if it can pull that off with a weaker holiday line-up than the Switch had then things are looking good for next year when it gets the gen 10 Pokemon games.



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Norion said:

I had never heard of the Nex Playground until last week but it seems to be a Kinect like device which is cool since the last version of the Kinect came out 12 years ago so there's been plenty of time for that technology to get a lot better so nice to see a company take another crack at it. Xbox Series not even being the 3rd best selling console in the US during black Friday week is just sad, during black friday 2017 it wasn't far behind the PS4 in the US. Also the Switch 2 makes up a similar percentage of sales as the Switch 1 did back in black friday 2017 so if it can pull that off with a weaker holiday line-up than the Switch had then things are looking good for next year when it gets the gen 10 Pokemon games.

I actually wonder how GTA will impact Pokemon gen 10 next year, it won't matter in Japan at all, but will it get any attention in the US and Europe or will everyone just focus on GTA?



Norion said:

I had never heard of the Nex Playground until last week but it seems to be a Kinect like device which is cool since the last version of the Kinect came out 12 years ago so there's been plenty of time for that technology to get a lot better so nice to see a company take another crack at it. Xbox Series not even being the 3rd best selling console in the US during black Friday week is just sad, during black friday 2017 it wasn't far behind the PS4 in the US. Also the Switch 2 makes up a similar percentage of sales as the Switch 1 did back in black friday 2017 so if it can pull that off with a weaker holiday line-up than the Switch had then things are looking good for next year when it gets the gen 10 Pokemon games.

I wouldn't hold my breath that Pokémon Wind/Waves is coming 2026. The same leaked schedule had Legends ZA coming 2024. If they manage it will be a great help to Switch 2 though. It has a weaker year one lineup than Switch 1 did so they need a strong second year of games. IDK when the other heavy hitters (3d Zelda, 3d Mario, animal crossing, smash) are coming. None of them feel like they're gonna show in 2026 to me, but Nintendo gotta have something big for next year.



This isn’t too surprising, to be honest, considering the significant discount on the PS5. I’m pretty sure something similar happened in 2017 when the PS4 was at $200, considerably cheaper than the first Switch. So I’m not sure that having a blockbuster title like a 3D Mario would change these results a lot.