Rykan
Member
I see that some people are struggling a bit with the realization that corporations will maximize profits and aren't actually your friends.
PS5 price to increase in select markets
- Thread starter Cyborg
- Start date
I Master l
Banned
Here in Saudi Arabia XSX is 1999 SAR on amazon with the promotion code, PS5 will cost you 2800 SAR which means the
price difference is 800 SAR ''220 $" and this is before the price increase, I can get XSX and Switch for the same price
of PS5 .. Sony is banking too much on the brand loyalty and i hope it backfire on them
price difference is 800 SAR ''220 $" and this is before the price increase, I can get XSX and Switch for the same price
of PS5 .. Sony is banking too much on the brand loyalty and i hope it backfire on them
Ezquimacore
Banned
This thread is entertaining as f, especially reading the comments of the fanboys soft-defending Sony.
Halo2redvsblue
Member
Panajev2001a
GAF's Pleasant Genius
Not saying they were losing money, albeit Sony is a lot more worried about issues outside of the US as they are much much stronger than MS consoles wise there, but we know one was already profitable per unit (profit margins is wider than just making a profit or breaking even).
I think the only thing we know is that neither was making Apple like margins on consoles.
Well. Microsoft and Nintendo clearly are not doing that. Because they know that getting someone to buy your console is just entrance to make more money. And please spare me remarks about "Microsoft has infinite money," because Nintendo don't have infinite money and they still are not adjusting prices of Switch.
Let's just admit that Sony could very easily eat the cost as they did during PS3 and start of PS4 era. They are 8 billion profit company after all. They opted not to. Not because they could not, but because they choose not to. In the markets where they are beating Xbox currently.
"In other words, Sony wants to keep hardware profitability stable, is passing on increased costs to consumers, and expects high demand for the console will allow it to hit FY targets." Aka. Sony know that PS5 is in high demand so they said "fuck it, lets make more money." So they are effectively new scalpers.
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DenchDeckard
Moderated wildly
Business is to make money, can't really blame them. If the people want it they will pay it and Sony can laugh to the bank.
Corporate greed baby. No charity here.
Corporate greed baby. No charity here.
phil_t98
#SonyToo
this argument about the dollar being strong, the pound is stronger against the Yen than the dollar is and uk still eating a price increase so that argument is crap, they just worried people won't buy it over xbox there and can't afford to make a price hike
{insert code here}
Member
USD is at a 20yr high and trending higher. Many currencies are at 20yr+ lows against the dollar (EUR, JPY) while others are at all-time lows against it.
If you live in a country where you got a price hike it's because you're currency sucks (sorry).
This also means you probably won't see any price hikes from MS (their biggest base is US customers). Nintendo though is going to eventually have to offset the losses from the failing non-US currencies they bring in.
I would not be shocked if Sony has to raise prices again next year.
If you live in a country where you got a price hike it's because you're currency sucks (sorry).
This also means you probably won't see any price hikes from MS (their biggest base is US customers). Nintendo though is going to eventually have to offset the losses from the failing non-US currencies they bring in.
I would not be shocked if Sony has to raise prices again next year.
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Rykan
Member
They are not adjust the price of the Switch but that's not an even remotely comparable situation. The Switch is well over 5 years old and is significantly cheaper to produce. It's also worth mentioning that for a long time, the Switch actually was more expensive in Europe: It was 330 euro's in many regions while it was 299$ in the US.
They're also not at all like "Scalpers". It's a ridiculous comparison. Scalpers force themselves into the supply chain as parasites and raise the price by 50% ~ 100% or more. This is a company raising the price of its own product by 10%.
lukilladog
Member
Maximize profits without generating a public perception of abuse.
clarky
Gold Member
Just curious what do you game on presently?
Both are using fact that their product is in huge demand to sell product with higher price because they know that even then their product will be sold out.
Sounds like scalper to me. Albeit official one...
It's funny how PlayStation fans can ride the dick of that corpo.
Cross-gen fees? - It's only 10$ for option slider.
No Day One First-party game in sub service? - it's actually bad thing, so I'm glad Sony is not doing that. Because I rather pay 80€ for a game.
Raising price of next-gen games? - muhhh inflation. Sony needs to make money (despite Sony being 8 billion profit corporation)
No backwards compatibility? - nobody plays old game anyway. Unless Sony bring backwards compatibility to PS5. Ten it is best thing since sliced bread
Raising price of consoles? - Poor Sony could not afford to sell consoles at a loss. Unlike Microsoft who has ungodly amount of money.
Just grow a spine and demand better. Nintendo and Microsoft fanboys are also bad. But at least when Microsoft tried to raise price of Gold, they started to criticise company and them Microsoft reverted back.
The USD is stronger relative to all of the major currencies including the GBP, that's the argument
So if other currencies will "catch up" to previous status quo, can we expect raising price of PS5 in US? Or lowering price of PS5 in other regions?
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The_Mike
I cry about SonyGaf from my chair in Redmond, WA
If that was the case then every xbox related thread in here would be a ghost town.
It's insane how so many in here just straight up accept Sony's greed, and don't find it a problem, that they are so much more expensive when you add up extra game cost, more expensive machine etc. compared to the competitor.
Who the hell in their right mind find logic in this?
Fanboys are truly a different breed.
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phil_t98
#SonyToo
so yesterday it was because the dollar so strong against the yen but today its other currency's. where is Sony based?
As in if the usd weakens to the major currencies?
You would hope that they would go for a price cut in other regions assuming the USD cost in the BoM stays fixed. I personally doubt that's going to happen for a while.
The main issue imo is the combination of the BoM of PS5 consoles (and PSVR2) is largely in USD whilst revenue isn't which has strengthened alot (means your 449 gbp gets you less in terms of usd so your margin per unit in UK/JP/EU has reduced) and the rise cost of components.
I think the fx is the bigger impact personally here but can see them being equally important.
Panajev2001a
GAF's Pleasant Genius
Cute
. Followed by the same summary all other Xbox fans are posting… totally casual flash mob…
I have been talking about all of the currency changes for a while.
Post in thread 'PlayStation VR2 releasing in early 2023' - latest example https://www.neogaf.com/threads/playstation-vr2-releasing-in-early-2023.1640456/post-266491405
Sony reports in JPY but a decent chunk of their costs are in USD.
You can see the impact of fx changes on Sony's OI in terms of appreciation in the yen. I have also kinda called out their estimated FX rates, their July forecast for the USD to JPY is/was still 1:130.
P. S. I don't think this has a major impact on demand for a while.
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phil_t98
#SonyToo
I have been talking about all of the currency changes for a while.
Post in thread 'PlayStation VR2 releasing in early 2023' - latest example https://www.neogaf.com/threads/playstation-vr2-releasing-in-early-2023.1640456/post-266491405
Sony reports in JPY but a decent chunk of their costs are in USD.
You can see the impact of fx changes on Sony's OI in terms of appreciation in the yen. I have also kinda called out their estimated FX rates, their July forecast for the USD to JPY is/was still 1:130.
P. S. I don't think this has a major impact on demand for a while.
but for ever dollar made they earn less than every pound made in yen. that's a fact they earn less per console sold in the us than they do in the uk
Rykan
Member
Scalpers aren't selling "their" product. That's the difference. They sell someone elses product.
Again with the "Can afford" or "Can not afford". This is corporation we are talking about. What they can or cannot afford is completely irrelevant. If your product is supply constrained and demand exceeds supply by such a huge amount that it sells out the moment it hit stores for 2 years straight, then your product is underpriced and it makes sense to increase the price.
From Sony's perspective, it's okay if the 10% increase means you don't want the system anymore because there's more than enough people who are still willing to buy the system at the new price point. Anyone arguing against this either does so at pure self interest and desire for a cheaper console (Totally understandable) or have some very weird concept of how Sony "Owes them" a cheaper product. Welcome to capitalism.
You'll probably understand this better if you stop looking at corporations as "Greedy". All corporations exist to maximize profits. All. Of. Them.
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My brain is trying to parse that. Might be too early in the morning.
Earn less in terms of revenue or profit? And what currency are we talking about here?
Hohenheim
Member
I would gladly pay 100 euros more for a new ps5 if they fixed the coil wine. Playing Spiderman remastered now, and when playing at low volume late at night, the whine is intense. It changes in pitch when moving the camera around. Worst one so far.
Also, I guess we should expect similar price increases in much tech the next 12 months.
Also, I guess we should expect similar price increases in much tech the next 12 months.
phil_t98
#SonyToo
so the ps5 costs in the Us $499 and in yen that's 68,368.477 yen
in the uk the PS5 costs £479 sn in yen that's 77,381.652 yen
they earn more yen per console sold in the uk than they do in the US
so saying that the dollar is strong in only half the story and there make more money per console in other regions
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You are talking about revenue cool. My comment is about the impact of the fx change on OI. The overall fx changes is boosting revenue and reducing margins.
I had created a sheet to highlight the fx impacts on profit.
Assuming BOM is fixed at 448 usd (which is kinda BS) but its more supposed to indicative of the fx impact per region. There are a bunch of assumptions here and only accounts for the Disc Sku. PS this is to highlight just the impact of the fx changes.
Again there are a bunch of assumptions but you can see the impact of the fx change on the profit per unit.
Maybe this is the disconnect
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phil_t98
#SonyToo
You are talking about revenue cool. My comment is about the impact of the fx change on OI. The overall fx changes is boosting revenue and reducing margins.
I had created a sheet to highlight the fx impacts on profit.
Assuming BOM is fixed at 448 usd (which is kinda BS) but its more supposed to indicative of the fx impact per region. There are a bunch of assumptions here and only accounts for the Disc Sku. PS this is to highlight just the impact of the fx changes.
Again there are a bunch of assumptions but you can see the impact of the fx change on the profit per unit.
Maybe this is the disconnect
Yeah but cost of making the console remains the same region to region, the only real thing that changes in the power adapater. They are manufactured in chine and Japan so costa remain the same for all regions.
Now where costa may vary is in shipping for regions depending on deals with tax and things.
It still remains that they earn more yen out of uk sales than they do US sales so not putting up the price in the US is only justified by saying the Xbox market is so strong there that they can't afford to up the price and loose market share there
Not arguing that they don't have to be more competitive in the US and the fact that they are earning more yen (why i got into that constant currency sub-thread in the sony earnings report).
Yeah the BoM and shipping costs (largely in USD) are going to be roughly similar across different regions but the USD value of a console sold in the UK (UK revenue) has changed in the last 12 months and so in terms of a fixed currency, the profit has decreased.
The_Mike
I cry about SonyGaf from my chair in Redmond, WA
That's true. But when the competitor brings a lot cheaper alternatives to a company that nicle and dimes everything, then I find them greedy.
That is the definition of greed.
Georges Chiellins
Member
I don't care about forking out an extra 50€... but where the fuck do I find one!
Bojanglez
The Amiga Brotherhood
Extra game cost? All third party games are priced the same on both platforms. A Sony game costs what it costs (in line with a lot of other publishers) and people will either want them at that cost of not.
If you don't want to pay the price at launch you can buy PS4 version (if it exists), wait for a sale (they are frequent), wait for the eventual PS+ release (might take a year or two) or wait for the PC release. There are plenty of options, another being buy an Xbox and never play them.
I would obviously not complain if Sony subsidised every console and sold cheaper games, but I don't feel entitled to it. I will just adapt my purchasing behaviour accordingly (if necessary). If the competition are going down another route then great, competition is good and some people will have to make choices, Sony will live and die by their decisions. However if as a business this is the best way for Sony to continue to bring their quality games to market, in a sustainable way, then so be it.
Banjo64
cumsessed
Even on the PS blog, the overwhelming majority of comments are slating Sony for this. GAF just has a few militant corpo posters.
Panajev2001a
GAF's Pleasant Genius
I think you are mixing defending and understanding together, but
.
Banjo64
cumsessed
Not at allI think you are mixing defending and understanding together, but
Thank you stranger if you are reading this!When did Sega, SNK and NEC have officially increase the MSRP price of an existing console SKU at the same time across most markets of the World?
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Little Chicken
Member
Just goes to show how thin the margins are, really. I wonder if Sony is still in a financially precarious position.
phil_t98
#SonyToo
but for each console sold they get more YEN per console from uk than US but they will sell more units in US than UK,so margins are bigger for profit in UK per console than US in Yen
The PlayStation division shifted gear in the second part of the PS4 life cycle and achieved a new level of profitability never reached before.
SIE (SCE) was never as profitable as it is now (see graph below).
SIE management (but the same is valid for Nintendo and Xbox) had to decide how to counter the foreign currency fluctuation and the rising costs.
Historically a console manufacturer is ready to eat losses from hardware to gain from everything else connected to it which is profitable (first-party games, royalties from third-party software, subsciption fees, services, MTXs) therefore it's in the best interest to earn less early on to foster a profitable platform down the road and because increasing the MSRP of a product is hard to justify to the eyes of consumers.
SIE management had to decide if eating the losses themselves (which wouldn't automatically mean the division would get in the red because SIE is highly profitable but would mean they couldn't achieve the same huge profits) or pass the costs to the consumers around the world hoping they are dumb enough to not punish the move (I'm not talking about short term sales cause PS5 is stock constraint but the possible harm to the long term mindshare).
So the decision for Sony was between getting screwed by investors or screwing consumers and hoping to get away with it.
They chose the latter.
Recently a sort of console (even if a new kind of) like Quest 2 got a price increase too.
However for Meta the situation was very different from Sony, Facebook's VR division was/is losing many billion of dollars each year and the hardware was already likely heavily subsided to "buy" marketshare early on.
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cormack12
Gold Member
It might be a pre emptive subsidy for PSVR2 as well. If they project an extra £30 per console for 18 months, it might knock the price of PSVR2 down to a nicer level as well.
There's too much we don't know really. But on the surface it's a bitter pill to swallow
00Magnum Gaming
Banned
Huh? I was telling dick how an 1hr 30 isnt hours. As for you Kikii thats 3 mins 20.5 seconds thank you very muchso 3mins 20seconds then ?
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The_Mike
I cry about SonyGaf from my chair in Redmond, WA
PS5 games are more expensive than previous gen, you have to pay for gen upgrade, psplus is more expensive, and now the console is more expensive.
I i think you somehow misread sonys current pattern.
If people are willing to pay for this, then they will also be willing to pay extra for Psvr 2.
RIght now it seems like Sony sees how far they can push it.
In the highest inflation period in modern times.
. That's pretty bold.
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Winter John
Member
Not good enough Sony. It should've at least been a $280 rise. We gotta protect the PS5's purity. Keep her out of the hands of them who don't deserve someone as special as her.