Indeed, according to the sales data available, it’s Europe that’s contributing to the PS5’s shortfall compared to the PS4, as Circana analyst Mat Piscatella noted in March 2024 that the new-gen system is trending seven per cent ahead of its predecessor launch aligned in the US. This is a clear sign that price is by far Sony’s biggest obstacle – especially when you consider that around half of PlayStation’s monthly active users have yet to actually upgrade.
The problem is this isn’t a mere case of greediness on the manufacturer’s part: Sony is legitimately finding it difficult to reduce the cost of the console. In earlier generations, like PS1 and PS2, it was able to eventually unlock entirely new audiences by driving the prices of its devices as low as $99, but that feels like a pipedream right now. As part of an investor call earlier in the year , bigwig Hiroki Totoki noted it’s proving “very difficult” to shrink the PS5’s die size. To make matters worse, crucial components are not getting cheaper either, leaving the console maker with very little wiggle room.
As a consequence, the company’s said that it’s trying to find a balance between users and hardware sales. “We want to make sure our business is profitable, as well we want to focus on user engagement, together with sales of units,” Totoki noted. “We need to strike a nice balance between all of those components.” In other words: if PS5 users are spending more money on games and PS Plus
While this is a sound strategy, it’s still going to need to continue to stimulate hardware sales at some point. Software will always help, and many are pointing to the release of GTA 6 as a milestone moment, as the 2025 title will only be available on new-gen consoles, thus forcing PS4 players to upgrade. According to Ampere , the most popular platform for GTA 5 remains Sony’s last-gen console, despite the title being available on PS5 for some time now.
The heavily rumoured PS5 Pro, apparently slated for release later this year , will be interesting to observe. In the previous generation, the PS4 Pro contributed approximately 25 per cent to PS4’s overall install base, but it benefitted from the availability of 4K televisions, providing it with a clear and obvious selling point. Sony will not have the same marketing opportunity this time, and with PS5 prices still high as already outlined, it could cost as much as $599/€649 at launch.
Image: Push Square Sony’s solution to its pricing dilemma has been to offer time-limited promotional periods; the last few weeks, for example, have seen temporary reductions to the PS5’s price, as well as virtual reality headset PSVR2
This is an interesting obstacle for PlayStation, and it’s a reminder that even in the wake of weak competition, the Japanese giant still needs to work hard. Xbox’s own brand image issues have been tangled up with PS5’s problems, but these hurdles are not the same: PlayStation is doing extremely well under the circumstances, but if it’s to unlock the part of its audience that propelled PS1, PS2, and even PS4 over 100 million units, it simply needs to get the price down.
How do you feel about PS5’s current price? How can Sony reduce the barrier of entry, and where does the heavily rumoured PS5 Pro fit into this? What price should Sony’s new-gen console cost, and how can it get there? Massage the numbers in the comments section below.
Do you think PS5 needs a price cut? (1,442 votes)
Yes, the system is too expensive at this stage of its lifecycle 66 %Maybe, but it just doesn't seem like it's possible right now 24 %No, it's not a priority because the system is still selling well 10 %
How much do you think PS5 should cost right now? (1,424 votes)
$299 or less 18 %Between $300 and $399 57 %Between $400 and $499 22 %More than $500 2 %
Are you interested in PS5 Pro? (1,458 votes)
Yes, I always want the best possible graphics and performance 23 %Maybe, but it depends on features and price 38 %No, I don't think there's any need for new hardware right now 39 %
