Why hasn't there been any price cuts for the PS5?

The Lunch Legend

The Lunch Legend

GAF's Nicest Lunch Thief and Nosiest Dildo Archeologist
Okay, we're
Fantastic_Four_logo.svg
years 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?
 
Because people keep buying them at full price?
 
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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West Texas CEO said:
Imagine how many more people would buy them at a cheaper cost.

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Click to expand...
False equivalence - this same Taco box was $5 less than two years ago.

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.
 
why price cut when they increase the price?
(Specifically when they dropped the new ps5 digital for $50 more than the original)
 
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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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Sony seem to prefer seasonal limited time discounts, to boost sales strategically at the moment. The time for a full discount will probably come in time for GTA VI I think.
 
West Texas CEO said:
Imagine how many more people would buy them at a cheaper cost.
Click to expand...
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
 
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.
 
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.
 
"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
 
Tommi84 said:
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
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The PS2 sold like water in desert and it got multiple price cuts.
 
Unknown Soldier said:
"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
Click to expand...
the Switch lacking a price cut is much more egregious honestly, heck they even snuck in a stealth price hike with the OLED model
 
PS4 barely had a price cut
I mean you can pick one up for £200 now but the majority of its life it was cut by £100 at most.
 
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.
 
The PS4 pro still retails for over $300 or more here. The PS4 sells for $300. They haven't dropped that much either.
 
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.
 
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.
 
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.
 
They are still not making a profit on hardware. They lost money the previous fiscal year on hardware and this fiscal year they are forecasting less losses from hardware but still not profit.

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