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Sony confirms the sale of its PlayStation 5 at a loss

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Written by Guillaume
Publication date: {{ dayjs(1612803600*1000).local().format("L").toString()}}
This article is an automatic translation

A way to conquer more and more market share against the competition of course..

Available since November 12, the PlayStation 5 is an expensive console in its "complete" version with its 499 euros. This is a relatively standard launch price compared to previous generations and significantly lower than the very expensive PlayStation 3. However, this price does not allow Sony to recoup its costs on the sales of its machines alone. More than 4.5 million in the space of two months, let's remember.

In a conference held in conjunction with the release of the group's financial results (PDF), we learn from Sony's own "mouth" that the company's video game division has sold more games, increased its earnings on PlayStation Plus and made more margins on PlayStation 4 sales. On the other hand, what it calls "strategic pricing placement" of the PlayStation 5 is "below the manufacturing costs" of the machine.

In other words, Sony is selling its machine at a loss. A process that is officially forbidden in France and that the Japanese company is undoubtedly circumventing through various accounting tricks. However, this is not really a surprise. If during the life of a console, the sale of equipment can make profits, this is clearly not done during its first months, its first years of existence. During this period, manufacturers are mainly concerned with conquering a maximum number of fans as quickly as possible, so that these players can then make the whole chain profitable by buying games, DLC, subscriptions, accessories, etc