Why hasn't there been any price cuts for the PS5?
- Thread starter Plies
- Start date
Chuck Berry
Gold Member
Probably because the Pro isn't out yet
Plies
GAF's Nicest Lunch Thief and Nosiest Dildo Archeologist
RagnarokIV
Battlebus imprisoning me \m/ >.< \m/
They're starving bastards.
Thick Thighs Save Lives
NeoGAF's Physical Games Advocate Extraordinaire
BoM (bill of materials) has barely decreased since the console's launch due to various factors, including the weak yen (most important component suppliers are paid in USD). Costs associated with the logistics chain have increased after COVID as well. It's an inflationary economy (i.e., $500 in 2020 is worth $606 today), among of multitude of other factors...
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jshackles
Gentlemen, we can rebuild it. We have the capability to make the world's first enhanced store. Steam will be that store. Better than it was before.
False equivalence - this same Taco box was $5 less than two years ago.Imagine how many more people would buy them at a cheaper cost.
Which kind of hits on another of my answers. In the last 4 years inflation in the US has been between 5-8% annually. When you take that into consideration, the fact that it's still the same MSRP means it's basically been getting an annual price cut. Most other markets weren't as lucky, and saw the MSRP actually go up.
Gaiff
SBI’s Resident Gaslighter
Doubt there will be a price cut following the Pro's release.
Sony looks at Nintendo selling their piece of crap hardware for the same price since day 1 and figured they can do it too.
Azelover
Titanic was called the Ship of Dreams, and it was. It really was.
Times are different. There is less pressure because other companies arent cutting their prices..they are all preserving the launch price, and it's not negatively impacting sales. So they have no reason to do it at this juncture..
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Little Mac
Member
Bumblebeetuna
Member
Wait until you hear about the Nintendo Switch
mayham2199
Member
Nah starving is when you sell your products for cheap. That's like saying Apple is starving with all their over priced garbage.
Plies
GAF's Nicest Lunch Thief and Nosiest Dildo Archeologist
How do you mean?
Tommi84
Member
The console sells GANGBUSTERS at full price. There's ZERO REASON for a price cut.
You do price cut mainly because:
- device is not selling
- you want to sell more than the competition
- you are dropping the production of this product and going for another version.
Neither of these are applicable for PS5
ChorizoPicozo
Member
they have to run a business. but they better figure out one ASAP
willothedog
Member
They would probably have to take a loss if they reduced the price since component prices are not dropping and a die shrink is not possible if I recall.
They didn't lower the PS4 price when the Pro released.
AGRacing
Member
The value of the dollar has gone down.Okay, we'reyears into the 9th generation and no price cuts?
By this time in the PS2's life-cycle , the price of a new unit at retail was cut to $149.99 !
What gives?
You did get a price cut.
blastprocessor
The Amiga Brotherhood
Revenue and profit.
Mibu no ookami
Demoted Member® Pro™
The best time for a permanent price cut is AFTER GTA6 not before. Cutting before is leaving billions on the table, especially with consumers (late adopters) who are going to be the least engaged on PS5.
Sony is going to keep selling to PS4 users who can't play EA FC this year or CoD next year, let alone GTA6.
The PS5 is also likely to be sold at a profit, which means Sony would rather sell you a PS5 Pro than a PS5, which is still sold at a loss.
Sony is going to keep selling to PS4 users who can't play EA FC this year or CoD next year, let alone GTA6.
The PS5 is also likely to be sold at a profit, which means Sony would rather sell you a PS5 Pro than a PS5, which is still sold at a loss.
nial
Member
PS4 Slim was released around the same time.
Unknown Soldier
Member
"Why hasn't there been any price cuts for the Switch?"
"Why hasn't there been any price cuts for the Nvidia GPU's?"
"Why hasn't there been any price cuts for the Porsche 911?"
"Why hasn't there been any price cuts for the iPhone 15 Pro Max?"
There aren't price cuts for things which are selling well at the current pricing. It's not rocket science, it's just capitalism
"Why hasn't there been any price cuts for the Nvidia GPU's?"
"Why hasn't there been any price cuts for the Porsche 911?"
"Why hasn't there been any price cuts for the iPhone 15 Pro Max?"
There aren't price cuts for things which are selling well at the current pricing. It's not rocket science, it's just capitalism
Shifty1897
Member
Tbh they're probably still losing money on them or just barely braking even. Inflation killed any chance of a price drop for a while.
ReyBrujo
Member
Okay, we'reyears into the 9th generation and no price cuts?
Actually...
bender
What time is it?
cash_longfellow
Member
Inflation is hard.
Rhazer Fusion
Member
Greed
Generic
Member
The PS2 sold like water in desert and it got multiple price cuts.
graywolf323
Member
the Switch lacking a price cut is much more egregious honestly, heck they even snuck in a stealth price hike with the OLED model
Last Hearth
Member
if you adjust for inflation they actually did cut the price.
Unknown Soldier
Member
Don't worry, they're gonna do it again with the Switch 2!
AngelMuffin
Member
More interesting, is that the Switch has been out for twice as long without a price cut.
Iced Arcade
Member
Consumers are are much more impatient and a "need to have now" era so there isn't a reason for any of these companies to lower prices.
Heimdall_Xtreme
Hermen Hulst Fanclub's #1 Member
Those aren't even tacos..Imagine how many more people would buy them at a cheaper cost.
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DenchDeckard
Moderated wildly
It's been discounted loads, just not an official permanent price drop.
I picked my second one up for like 100 pounds, if not more off.
Tech just isn't dropping in price really any more and Sony aren't really making any profit off the hardware.
I picked my second one up for like 100 pounds, if not more off.
Tech just isn't dropping in price really any more and Sony aren't really making any profit off the hardware.
Madserb2023
Member
There are numerous reasons because it's not just an issue with consoles. Weakening currency exchange rates which isna really big one. The Yuan is not what is was. The Dollar, Pound, Euro simply doesn't buy as much. Chinese people earn about 5 times what they did 20 years ago. Could see a drop in assembly if goes to India. Shipping is significantly more expensive and isn't getting better especially now with the situation with Yemen. Your PS5 has to now very likely go all around Africa rather than through the Suez Canal especially if you are in Europe. Finally you don't reduce the price if you are still selling well.
StereoVsn
Gold Member
Like others above said it's a multitude of factors.
1. MS as competition is almost non existent, at least for the time being.
2. Wafer pricing isn't going down, they can't cheaply shrink the current 6nm process so SoC isn't getting cheaper.
3. Currency conversion rates for ¥ to $ is shit and Sony as a Japanese corporation has to deal with that.
4. Inflation on anything from labor to components to shipping has been significant over last 4 years. It has come down quite a bit but that doesn't mean prices have dropped. So you are looking at 20-25% price increase for a likely BoM.
5. PS5 is still selling very well so they don't have to take drastic measures.
I still think they will do a small cut when Pro is out later this year.
1. MS as competition is almost non existent, at least for the time being.
2. Wafer pricing isn't going down, they can't cheaply shrink the current 6nm process so SoC isn't getting cheaper.
3. Currency conversion rates for ¥ to $ is shit and Sony as a Japanese corporation has to deal with that.
4. Inflation on anything from labor to components to shipping has been significant over last 4 years. It has come down quite a bit but that doesn't mean prices have dropped. So you are looking at 20-25% price increase for a likely BoM.
5. PS5 is still selling very well so they don't have to take drastic measures.
I still think they will do a small cut when Pro is out later this year.
