chromhound
Member
i guess i'm sticking to team xbox this year...
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PS5 price to increase in select markets
- Thread starter Cyborg
- Start date
SlimySnake
Flashless at the Golden Globes
Keep me out of this. Im sure people will defend yet another greedy move by Jim Ryan. I want nothing to do with those people.
Punished Miku
Gold Member
They should bring back Kaz at their PS September showcase to announce it's now $599 US Dollars. They'd win the year.
Roxkis_ii
Member
Xbox fans seem to be fine with the status quo. Who am I to tell them to want better.
As long as Sony doesn't have a monopoly on gaming, customer good will - will still need to be a consideration and counter balance to stright up profit decision making.
This $30 increase in select territories could have been a 100 price increase world wide if they really wanted to be mask off.
Ass of Can Whooping
Member
Social Welfare on a global scale
nominedomine
Banned
PS5 DE Slim $599. You pay extra for all the space you'll save.
Negotiator101
Member
tommib
Member
I knew the communists were behind this.
Panajev2001a
GAF's Pleasant Genius
Again, you judge Sony as a whole corporation so let’s judge MS as a whole corporation.
Otherwise we have a problem of explaining how they found $70+ Billion to spend on two publishers from their gaming sector profits alone (I will wait
). You are trying to talk out of both sides of your mouth.
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Clear
CliffyB's Cock Holster
Primary reason why not to be overly concerned. Its a luxury good during a time where essentials are under huge inflationary pressure.
if they've been selling at break even or loss since launch in order to drive sales, then global economics is going to impact the supply chain from component costs, through assembly packaging, transport and warehousing etc.
Why are they expected to eat losses on what is unequivocally an inessential good?
I mean, you might have an argument if they were instrumental in Covid and the governmental response to the pandemic, war in Ukraine, the shaky nature of the Chinese economy etc. But they weren't.
Most likely they are expecting overall conditions to depress sales on what is a volume business, reducing recurring revenue per sale/user. So I fail to see how adding a small premium to buy-in is such an unreasonable move.
They aren't your friend. They are a business! Pull your head out of the sand.
John Wick
Member
There has to be a notable die shrink before a slim model becomes viable.
STARSBarry
Gold Member
comes with a preloaded copy of RIIIIIIIIDGE RACER!
MikeM
Member
My post spoke about cancelling my PS Plus services altogether in favour of GP.
I thought MS did not discuss the profit of their gaming division?
Flakster99
Member
So let me get this straight:
Yeah, I can't say this is a good look.
- Price hikes on their PS5 hardware nearly two years into the generation
- $18/month PS+ Premium that gives you practically no Premium benefits
- Requiring customers to pay for current-gen patches for many of their games
- Terrible, anti-consumer digital return policy
- $70 games, much higher priced in other Countries
Yeah, I can't say this is a good look.
tommib
Member
Totally worth the money, now, actually.
Gudji
Member
Ass of Can Whooping
Member
Reminder to negotiate your salary. Get what you're worth
Well, unless you're a women
Well, unless you're a women
nominedomine
Banned
And what does the price of the PS5 has to do with that?
PS+ Essentials & Extra are great value, PS+ Premium/Deluxe suck ass, nothing changes in that regard with the PS5 hardware price increase.
MikeM
Member
Merely pointing out Sony’s crappy value proposition at the moment compared to MS currently.
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Loxus
Member
And what would these people do?
Jim Ryan alone don't make these decisions, there are many people above him that tell him what to do.
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Jaybe
Member
Canada
I see why they are doing it. The USD is strong and other currencies are weaker, so in this global market plus inflation they in theory should be raised. They did this in PS4 gen as well. Plus they still seem to sell out everything they produce and don’t mind being positioned as premium to Xbox.
On the flip side, consoles should decrease in price as they age and are more technically dated. So if they just left the price the same it would be accomplishing a sort of price reduction given these inflationary period.
With Black Friday and holidays coming up, I suspect they wanted the extra revenue and profit and will sell out any way even without Sony funded sales. I do expect Microsoft to have some Microsoft funded sales in the next few months (even if slight) to clear built up inventory, mitigate the weak holiday Game release schedule, and further highlight this price gap to Sony. Should be interesting to see who wins the holiday season.
- Xbox Series X - $599.99
- Xbox Series S - $379.99
- PS5 with Ultra HD Blu-ray disc drive – CAD $649.99 (was $629.99)
- PS5 Digital Edition – CAD $519.99 (was $499.99)
I see why they are doing it. The USD is strong and other currencies are weaker, so in this global market plus inflation they in theory should be raised. They did this in PS4 gen as well. Plus they still seem to sell out everything they produce and don’t mind being positioned as premium to Xbox.
On the flip side, consoles should decrease in price as they age and are more technically dated. So if they just left the price the same it would be accomplishing a sort of price reduction given these inflationary period.
With Black Friday and holidays coming up, I suspect they wanted the extra revenue and profit and will sell out any way even without Sony funded sales. I do expect Microsoft to have some Microsoft funded sales in the next few months (even if slight) to clear built up inventory, mitigate the weak holiday Game release schedule, and further highlight this price gap to Sony. Should be interesting to see who wins the holiday season.
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This is about the end revenue from the retailers not sure that currency forward contracts will be applicable here.
nominedomine
Banned
To you maybe, clearly not to the general market where the PS5 still outsells the Xbox on every market and it sells pretty much all units that they can produce, to the point that they are comfortable with raising the price.
The Series S has allegedly "great value", yet it's there sitting on the shelves everywhere. To me it has the worst value by far and would still have it even if they reduced it's price to $199.
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Hugare
Member
Switch uses old af hardware. Nintendo is having huge profits with each unity that's sold, so inflation doesnt affect them.
Microsoft can easily take a loss. They have infinite money chear activated.
Not trying to protect Sony by any means, but context matters.
Sony could take a loss with each PS5 sold and still have proffit with software sales
this is suïcide for Ps5. Xbox should lower their prices by 50.
MikeM
Member
Not sure why you are getting so sensitive about it. Again, I have both and PS has been my main for generations of consoles. I’m happy that you are happy with the value you get out of PS.
I just find GP and the day one offerings are better value for me and my family at the moment.
SlimySnake
Flashless at the Golden Globes
For the record, the PS5 was already making money on PS5s given how their BOM was around $450 and their main SKU was $500. They undershipped the PS5 DE as expected, and even confirmed that the Disc Edition was breaking even.
Gone are the days when they would launch the console for a loss. The PS4 BOM was $381 and it sold for $399. The PS5 had a good $50 difference already which wouldve covered the retailer cut. With Sony now selling more consoles directly from their website, they dont even have to pay that.
The year the PS5 launched, they posted a record $3.25 BILLION profit. For comparison, they lost $3 billion in the first three years of the PS3. They are making more money than ever before. They didnt have the luxury of 46 million monthly PS+ subscribers back in the PS3 days or even the early PS4 days. They were only getting 10% cut from royalties, now with 70% of game sales on their own digital store, they get a 30% cut from every single third party sale including microtransactions.
And yet, here we are. Increasing the price. Passing the costs down to the consumer who already paid $500 for your premium console that has had a dearth of next gen only games to justify its cost. Absolutely shameful stuff from a company I spent decades defending.
Gone are the days when they would launch the console for a loss. The PS4 BOM was $381 and it sold for $399. The PS5 had a good $50 difference already which wouldve covered the retailer cut. With Sony now selling more consoles directly from their website, they dont even have to pay that.
The year the PS5 launched, they posted a record $3.25 BILLION profit. For comparison, they lost $3 billion in the first three years of the PS3. They are making more money than ever before. They didnt have the luxury of 46 million monthly PS+ subscribers back in the PS3 days or even the early PS4 days. They were only getting 10% cut from royalties, now with 70% of game sales on their own digital store, they get a 30% cut from every single third party sale including microtransactions.
And yet, here we are. Increasing the price. Passing the costs down to the consumer who already paid $500 for your premium console that has had a dearth of next gen only games to justify its cost. Absolutely shameful stuff from a company I spent decades defending.
nominedomine
Banned
And what does that has to do with the price of the PS5 hardware? That's what I'm failing to understand.Not sure why you are getting so sensitive about it. Again, I have both and PS has been my main for generations of consoles. I’m happy that you are happy with the value you get out of PS.
I just find GP and the day one offerings are better value for me and my family at the moment.
As for being sensitive, I'm not the one outraged by a 10% price increase on a hardware I already have.
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alabtrosMyster
Banned
A small discless system with a 512gb storage option (if at all possible to cool down properly) would do wonders for those who only play fortnight by example.
If the BOM was 450, how were they making money on consoles? On top of retailer cut there’s shipping, import costs, overhead, etc?
Gudji
Member
They've been consistently delivering great value for people who love gaming: great hardware, great exclusives, great sub service filled with AAA games to play while being cheaper than gamepass. And here we are with these takes of sony offering a "crappy value proposition". lmao
Dr.Morris79
Member
My point is, it's quite possibly the worst time for them to do it, but like I said, people will find a way even if it skints them in the end. And lets also be honest, it's pure greed. Sony shift these things regardless, even without the hike..
But this is Sony, after all. And no, they're no ones friend and no one needs to white knight for them, including you.
It's not exactly an item thats not selling.
Punished Miku
Gold Member
He drops the news at Gamescom lol.
MikeM
Member
Again- its a comment to the overall value proposition of Sony and MS at the moment, especially considering now the increased cost of the PS5. Why is that hard to comprehend?
vodka-bull
Member
If I can finally grab a DE in my local store I fon‘t mind the price increase.
Ass of Can Whooping
Member
Makes sense. Make a shit event even shittier
DenchDeckard
Moderated wildly
Materials, even like plastics have seen huge increases in costs this year. Also, shipping costs especially from the east have ballooned so its not just manufacturing and chip shortages anymore. The margins and bom must have been so tight on the ps5 that they have no other option.
Id love to know how many ps5s fit on a pallet. Then know how many series s or series x fit on a pallet. To my knowledge the digital edition ps5 is in the same sized packaging as the disk one, which is roughly twice the volume or 1.5 times that of a series x. Shipping will be hitting them hard.
Not at all, the series x and s are actually using off the shelf components such as WiFi card and ssd vs the WiFi 6 and custom ssd of ps5 plus less materials overall due to the smaller size. The controller is also cheaper and has less tech in it. Ps5 must definitely cost more than the Series x just looking at it from a top level imo.
Then we aren't accounting for packaging and shipping, storage in warehouses before shipping etc.
Zok310
Banned
Exactly what i thought, another ignorant bullshitter. Must be your general attitude in life?
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Isn't the bug difference that US prices do not contain taxes? So it should be $499 + taxes while the other countries already include the taxes in the promoted price. Or do companies promote console prices already including taxes in the US?
$ony already made the jump for games (+10€), now they seem not to want subsidize more for their consoles. And still games sales life from the last gen ... I guess we will also see more cross gen games from unannounced $ony titles in the future.
MikeM
Member
Cheaper than gamepass?
My PS tells me a sub to PS Plus premium is $140/year (CAD). I can get 3 years of GP Ultimate with the $1 flip trick for $180 (3x $60 Gold memberships).
Lmao?
nominedomine
Banned
Because if you already paid for the hardware how does that affect the value of PS+ for you? Makes no sense, so you were already going to move to GP anyway regardless of this news.
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tmlDan
Member
Here is what i also wrote under the blog post, i know they will monitor consumer sentiment and most of the idiots who response say "L" or something, but this is is a stupid move that makes no sense for some of the markets.
I understand some of the decisions base don the falling Euro and changes in markets but to increase it in Canada makes no sense at all from an economic standpoint, the Canadian dollar has not dropped in the same fashion as the Euro and should be a proper adjustment based on the currency exchange rate in the USA.
The absolute disregard for the consumer is disgusting, if it was a small increase i would understand, but a $20 and $50 increase in a market where the dollar has sat at around the same point (78-80 cents on the dollar) is anti-consumer.
I understand some of the decisions base don the falling Euro and changes in markets but to increase it in Canada makes no sense at all from an economic standpoint, the Canadian dollar has not dropped in the same fashion as the Euro and should be a proper adjustment based on the currency exchange rate in the USA.
The absolute disregard for the consumer is disgusting, if it was a small increase i would understand, but a $20 and $50 increase in a market where the dollar has sat at around the same point (78-80 cents on the dollar) is anti-consumer.
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