Analyst: Sony Blew it With Cheaper PS5 Model
According to analyst Michael Pachter, Sony's idea to launch two PS5 models was ill-conceived. This move is said to backfire as soon as on the day of console's launch.
- Analyst Michael Pachter thinks that Sony made a bad call with two PS5 models.
- Sony is saud to lose almost $50 on every Digital console.
- According to the analyst, the players will choose the more expensive version, and in the long run the model without a drive will stop being produced.
One of the most popular analysts in the gaming industry, Michael Pachter, believes that Sony "blew it" with its decision to release PlayStation 5 Digital Edition. The biggest problem for the company is the console's production cost and the price Sony wishes for it.
Pachter believes that the Japanese company will have difficulty in making up for the loss they will incur on every console they sell. In his opinion, even taking into account that Sony earns $6 more on each digitally purchased game than on the boxed edition, the decision to prepare such a console was unreasonable.
"I think Sony really blew it with that because as far as we can tell, the cost of making a PlayStation 5 is $450, so they are breaking even on the $500 version, but losing $40 or so on the digital version. So they’re losing $40, but they gain $6 more per digital game than they would gain otherwise. So you would have to buy a lot of games to cover up the loss, and I just think it’s unlikely many will buy that many games."
The analyst also believes that over time Sony will gradually reduce the number of consoles produced without a drive, as the players will prefer to invest a little more money and buy a version with the drive. Of course, he points out that there is currently no data to support his theses, and admits that in fact, both consoles have sold out. However, eventually, PlayStation 5 Digital Edition will be thrown in the bin.
One may wonder, that Pachter (who doesn't enjoy much esteem among gamers) has ignored the fact that people will pay for the PlayStation Plus subscription, which will also cushion Sony's costs. Ultimately, we'll find out in a few months whether Pachter was right.
