PS5 Pro might be the most consequential video game system released since the PlayStation 2, if Sony gets things right with it.
Difficult balance between performance and price.
People want double the power of the PS5 but only for an additional 100 dollars from the current base price.
That's a very tall order. I think the PS4 Pro had a pretty lukewarm reaction, though it had more than double the power of the original PS4 at the same price as the launch version.
It'll be interesting to see what price the PS5 Pro launches at and what impact that has on the PS5 SE and PS5 DE. By the end of next year, we may see a PS5 Digital as cheap as $350.
I think there are a couple more probable scenarios
Scenario A - High end, no price cut, and a larger introductory price for the PS5 PRO
PS5 PRO | 600 |
PS5 | 500 |
PS5 Digital Edition | 450 |
Scenario B - Following the trend of PS4
PS5 PRO | 500 |
PS5 | 400 |
PS5 Digital Edition | 350 |
Why I think this is consequential is because Nintendo may very well have to compete with PS5 Digital to some extent on price, especially if there is a goal to garner more of the market share that comes with 3rd party titles. The Nintendo Switch (non-OLED version) currently costs $300 dollars. Will the Switch 2 come out for $300 dollars and if it does what kind of performance can they deliver for a hybrid console at that price? They may need to take considerably small margins on the Switch 2, if not even sell it at a loss. The cheapest Steam Deck is 350 and it's not very powerful.
If the Switch 2 clocks in under the power of a PS4 Pro, it's going to struggle to compete with the PS5, particularly the digital in straight-up competition. That's again assuming that the PS5 Digital ends up discounted next year.
Microsoft will also have a big decision on their hands. If the PS5 Pro enters for 500 and the base model drops to 400, they can't continue selling the XSX for 500. The XSX is already being priced at 350-400 at various retailers. It's currently 400 on Amazon right now. That creates another question for Microsoft, which is what to do with the Series S.
The Carbon Black XSS is currently 350 and you can get the base model for 250 and it's struggling to sell at that price point (in fact you can get the XSS Starter pack for 240 and that comes with 3 months of GamePass). You almost have to discontinue selling the base model and then sell the Carbon Black for 250-300 and just hope for the best.
Given that the PS5 Pro rumored leaks seem a bit underwhelming, it would suggest that Sony's strategy is probably to do Scenario B, which would also explain the price increase for the PS5 Digital this year, because otherwise, people would expect the PS5 Digital to drop to 300 dollars, everything being equal.
Going a step further if we look at PS5 Digital at 300 and price drop of the PSVR2, currently 550, I think we could see this drop to 450 in Q1 bundled with RE4. That brings it lower than the MetaQuest 3.
I then think you are potentially looking at prices for PS5 Pro at 500 and PSVR2 eventually at 350, which could be very compelling for people interested in VR.