“They Blew It”: Sony Losing $40 on Every PS5 Digital Edition Sold, According to Analyst

[Tsing]

Image: Sony



When the PlayStation 5 launches next month, gamers will have two versions to choose from: a base model that costs $499.99, and a “Digital Edition” that ditches the Ultra HD Blu-ray disc drive for a cleaner profile and cheaper price. With the latter only costing $399.99, gamers have been wondering what kind of loss Sony might be taking on the console.



Michael Pachter may have the answer. During a recent discussion with GamingBolt, the infamous industry analyst claimed that Sony is losing $40 on every PS5 Digital Edition sold. This is actually less than what Sony was losing on the PlayStation 4 when it launched back in 2013 ($60, according to...

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[Burticus]

Someone is forgetting that the disc drive also will play 4K UHD Blu-Rays. That is one reason I will be going for the $499 version. Reselling used games is nice to have as an option, but it not my primary motivator. It was back when I was on a super tight financial budget on my 360 / PS3 days. I never bought new games, always used, and I usually resold them after. I was also broke back then.

 

[Brian_B]

I heard Sony is making these in a 80/20 split, with only 20% being the all-digital edition.

Even at a $40 loss, by the time you factor in that all-digital means 100% of software sales go through your storefront and no gray market, that loss leader is a no brainer.

Apart from that, 75% of the reason I want a PS5 is for 4KBD playback, so I wouldn't want the digital edition anyway, but I could really see it being a large driver for holidays for parents getting them for kids. $100 cheaper could move a lot of units, and the Plus Collection bundle is an awfully nice enticement out the door.

 

[Uvilla]

If they selling at a loss means you are getting your money's worth.

 

[ThreeDee]

I personally prefer all digital .. I can't stand messing around with discs .. for games .. or for movies .. Go Go Gadget Plex!

 

[Riccochet]

Yeah I don't see this as a problem for Sony. Any loss they incur will be negated via game/music/movie sales through the PS store, which will also require a subscription.

 

[Armenius]

If they selling at a loss means you are getting your money's worth.

Except they're making up for it by increasing the price of the games to $70. Sony is out of their minds if they think I am going to pay the full $70 for the Demon's Souls remaster.

Yeah I don't see this as a problem for Sony. Any loss they incur will be negated via game/music/movie sales through the PS store, which will also require a subscription.

Source on that? That would be an extremely idiotic move if they required a subscription just to buy stuff from their store.

 

[Riccochet]

Except they're making up for it by increasing the price of the games to $70. Sony is out of their minds if they think I am going to pay the full $70 for the Demon's Souls remaster.

Source on that? That would be an extremely idiotic move if they required a subscription just to buy stuff from their store.

You don't need a subscription. So, I mis-worded that. But PS Plus is a big seller. 100's of free games to play. Which makes sense for a digital edition console. Plus all the revenue from game sales for those consoles. $40 loss on the hardware is peanuts.

 

[Brian_B]

I personally prefer all digital .. I can't stand messing around with discs .. for games .. or for movies .. Go Go Gadget Plex!

Oh I totally agree. A few years ago I thought I'd stick with discs, because I'd own the media, I wouldn't be stuck with a long download on my ISP, and I could trade it in later on.

I've found - they can still shut the game down even if you own the disc, you still have huge downloads, especially Day 1 patches, and the gray market isn't exactly lucrative

And I hate having to get up and change the disc all the time. I'm lazy. And my kid is careless.

All reasons my game purchases have pretty much moved to all digital for the past few years. But I still plan on buying the disc version - just for the 4K BluRay player.