So far, Sony has been selling its new PlayStation 5 console at a loss – a fact that is anything but unusual for the start of a new generation. But that should change soon!
Sony has now confirmed that the disc version of the PlayStation 5 will probably reach the break-even point in June. Translated this means: The sales price of the console and the production costs due are balanced; Sony no longer has to accept a loss through hardware sales with regard to the PS5.
SIE CEO Jim Ryan told investors about this: “I’m happy to say that the standard model of the PS5 will break even with next month’s production. From then on, we assume that the console will continue to be profitable . “
In short: through further cost reductions in the production process, the PS5 sales should flush increasing profits into Sony’s coffers.
Especially at the start of a new generation, it is anything but unusual for the hardware itself to be sold at a loss, as analyst Daniel Ahmad emphasizes once again. Rather, the manufacturers are betting on expanding the user base in order to generate profits with first-party games and services. They also usually get a piece of the pie from third-party titles and DLC content.
The news for Sony today is all the greater as the Standard Edition with Drive makes up the bulk of PS5 sales. According to Sony estimates, this ratio should only shift slightly in the direction of the digital variant in the future.