Over time, various console manufacturers may have initially sold their devices at a loss so as not to bring them to market at too high a price for consumers. If this situation can be spread over a more or less long period of time, it seems to be partially finished on PS5.
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As mentioned several times today, Sony Corp has just released its financial results for the first quarter of fiscal 2021. And during the subsequent conference call for investors and analysts, the electronics giant returned to the current situation of the PS5.
About the profitability of the PS5, Hiroki Totoki, CFO of Sony Corp, revealed that the standard model, which is marketed at a price of 499 dollars / dollar, is no longer being sold at a loss. Cap, which the manufacturer achieved in just over eight months (for comparison: the PS3 had taken several years to avoid being sold at a loss).
As for the PS5 Digital Edition (which does not include a disc player) priced at 399 dollars / dollars, sales will continue for the time being. However, Hiroki Totoki claims that the losses caused by this 100% demoralized game version of the PS5 will be offset by the sale of other products such as PS5 accessories or the PS4.
A question of time
In some countries, such as France, selling at a loss is prohibited as it is considered an unfair business practice. However, this applies to direct sales from the retailer to the consumer. When Sony speaks of the lost sales of the PS5, they are talking about the sale of the manufacturer, i.e. Sony, to the distributors.
And if the standard PS5 is already profitable, it certainly won’t be long before the PS5 Digital Edition becomes profitable (over time, console production costs inevitably go down). That being said, the fact that Sony’s CFO is creating the elements that can offset the sales of these latter ones shows that it will be necessary to wait a little longer before the two machines put money straight into the Japanese glove.
Are you surprised that the standard PS5 has already been sold at a loss? Does the fact that the PS5 Digital Edition sells for 100 dollars cheaper than the standard PS5 work or will it work in your favor? Tell us all about it in the comments below.