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[West Texas CEO]

Okay, we're

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?

 

[Chuck Berry]

Probably because the Pro isn't out yet

 

[jshackles]

Because people keep buying them at full price?

 

[West Texas CEO]

Because people keep buying them at full price?

Imagine how many more people would buy them at a cheaper cost.

 

[RagnarokIV]

They’re starving bastards.

 

[Thick Thighs Save Lives]

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...

 

[jshackles]

Imagine how many more people would buy them at a cheaper cost.

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.

 

[Codes 208]

why price cut when they increase the price?
(Specifically when they dropped the new ps5 digital for $50 more than the original)

 

[Gaiff]

Probably because the Pro isn't out yet

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]

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..

 

[Little Mac]

 

[Bumblebeetuna]

Wait until you hear about the Nintendo Switch

 

[mayham2199]

They’re starving bastards.

Nah starving is when you sell your products for cheap. That's like saying Apple is starving with all their over priced garbage.

 

[West Texas CEO]

Wait until you hear about the Nintendo Switch

How do you mean?

 

[Bojanglez]

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.

 

[Tommi84]

Imagine how many more people would buy them at a cheaper cost.

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]

they have to run a business. but they better figure out one ASAP

 

[willothedog]

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.

 

[ManaByte]

Probably because the Pro isn't out yet

They didn’t lower the PS4 price when the Pro released.

 

[AGRacing]

Okay, we're

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?

The value of the dollar has gone down.
You did get a price cut.

 

[blastprocessor]

Revenue and profit.

 

[Mibu no ookami]

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.

 

[nial]

They didn’t lower the PS4 price when the Pro released.

PS4 Slim was released around the same time.

 

[miklonus]

"Why hasn't there been any price cuts for the PS5?"
There hasn't? I saw them with my own eyes at Target.

 

[Unknown Soldier]

"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

 

[Shifty1897]

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]

Okay, we're

years into the 9th generation and no price cuts?

Actually...

 

[bender]

What gives?

 

[Yamisan]

Because it sells without a problem and has no direct competition.

 

[cash_longfellow]

Inflation is hard.

 

[damidu]

happens when your supposed main competitor is having pretty much an implosion of a generation.

 

[ArtHands]

They already increased the price couple of times.

 

[Rhazer Fusion]

Greed

 

[Generic]

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

The PS2 sold like water in desert and it got multiple price cuts.

 

[graywolf323]

"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

the Switch lacking a price cut is much more egregious honestly, heck they even snuck in a stealth price hike with the OLED model

 

[lh032]

Success dont need price cut.

 

[Last Hearth]

if you adjust for inflation they actually did cut the price.

 

[Unknown Soldier]

the Switch lacking a price cut is much more egregious honestly, heck they even snuck in a stealth price hike with the OLED model

Don't worry, they're gonna do it again with the Switch 2!

 

[TGO]

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.

 

[AngelMuffin]

More interesting, is that the Switch has been out for twice as long without a price cut.

 

[Esppiral]

Market leader is the answer.( Yes I know the switch exists)

 

[Iced Arcade]

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]

Imagine how many more people would buy them at a cheaper cost.

Those aren't even tacos..


-------

 

[Jesb]

The PS4 pro still retails for over $300 or more here. The PS4 sells for $300. They haven’t dropped that much either.

 

[DenchDeckard]

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.

 

[acm2000]

People are buying it even without meaningful games coming out so, yeah, let's cut the price...

 

[Madserb2023]

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.

 

[Robb]

It’s flying off the shelves still I assume. No reason to drop it.

 

[StereoVsn]

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.

 

[Mownoc]

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.