Just take a look at the PC market to realize that, to date, no computer with the features of PlayStation 5 is priced the same or lower . Quite the contrary.
Thus, it was not surprising that sooner or later Sony ended up publishing a reality that was already known, although now it has been officially confirmed. And it is that the Tokyo-based company loses money every time it sells a unit of its next-generation console.
High manufacturing cost
Like any company with investors, it is forced to present its results. In the last of them, which refer to the end of the year 2020 and which have just come to light, it is indicated that the strategic price does not reach the minimum that the manufacture of each machine.
It is advisable to word strategy, since everything is properly thought out by Sony. Its profits are increasing, which is difficult to understand considering the losses it is subjected to with almost five million PS5s sold worldwide.
However, it is not surprising considering what is behind sales. And it is that the consumer is not limited to acquiring the console , but also buys software and / or activates subscriptions for which Sony receives huge amounts of benefits.
As can be seen in these results, the last quarter of 2020 was even better than the previous one in terms of profits . The aggressive strategies of adding good games to both PS Plus and PS Now have resulted in a large increase in subscriptions.
The first mentioned service has approximately 47 million subscribers worldwide. Multiplying it by the price it costs, it is evident why Sony does not give too much importance to the initial losses that it must assume with the sale of hardware.
You see it more than compensated thanks to this type of subscriptions that suppose you low costs and a lot of income. So much so that the quarter referred to in the latest report that has transpired this news reveals an impressive figure: operating profits amount to a total of almost 800 million dollars .
It must be borne in mind that in the not too distant future, the manufacturing costs of PlayStation 5 will become cheaper considerably. Even so, this does not imply that Sony is going to stop losing money with each sale, since perhaps that is when it applies a reduction on the RRP, which varies depending on whether you opt for the model with or without a Blu reader. -Ray.
The losses would continue to occur, but the benefits would go further thanks to the greater increase -if possible- both in subscriptions and games sold. Even those that are not developed by Sony itself, coming from third-party companies, provide a lot of money in the form of royalties.
Invest in it The addition of masterpieces to an exclusive collection for PS Plus members, which includes 20 great games from the previous generation , has also been key to boosting subscriptions by new owners of PlayStation 5.
This very favorable economic situation is surprising especially considering that fewer PS5s have been sold than would be expected, a situation that is given by the breakages of stock that many stores have experienced.
Therefore, when the difficulties to supply it cease – Sony itself calculates that it will happen at the end of 2021-, Profits will increase without losing money for each PlayStation 5 sold below its manufacturing cost.