
Price elasticity is an easy to understand concept: the price goes down and the sales go up. Sony has been enjoying an extraordinarily strong year with the PS5, and thus it was inevitable that the moment it cut prices, it’d see sales absolutely surge. And that’s exactly what’s happened in the UK, where a disc-based console can be bought for as little as £399.99.
Games Industry.biz reports that since the price drop, sales have jumped by 75 per cent, with revenue also up 63 per cent as well. In order to make the most of the situation, some retailers are even bundling in games as a sweetener, to convince consumers to come to their stores. It’s a really aggressive and unprecedented move, especially when you consider the PS5 is already in a strong position.
Sony announced last week that it had sold 40 million new-gen consoles worldwide, and while this price promotion is only temporary, there are strong rumours it’ll introduce a hardware revision before Christmas. It’s also got the limited edition Marvel’s Spider-Man 2 console bundle launching next month, as it looks to overtake PS4’s sales launch aligned.
[source gamesindustry.biz]
Comments 64
Now please stop making AAA PS4 titles Sony, holding back PS5
@Luigia I don't expect many more PS4 games from them apart from maybe MLB The Show next year.
Sell hardware cheap, make money back via software. That's the way its been for thirty years. Sony should have done this sooner.
@Luigia I would agree that it is holding back the PS5 NOW. The first few years of every modern console always looks like high end versions of what you could get a generation before.
Yessss! PS5 on top 💪🏻
@get2sammyb i agree, if Sony didn't make Helldivers 2 on PS4 than I highly doubt anything else will be except mlb (it's on the switch so PS4 isn't even the lowest powered system).
Sony got this gen in the bag already. Now let's focus on PS5 version games going forward and hopefully a slim model coming soon.
Im at a loss as to why they cut the price when they sell anyway?????
@get2sammyb I think from now on all crossgen titles will be sport titles in general with maybe couple of less known studios games that want to utilize on bigger audiences.
@hbkay to empty warehouses for a new revised console that's launching later in the year and the ps5 pro, that's launching next year November.
@LifeGirl Why? They sold 40 million at full price.
I'm kinda broke so a £400 ps5 is still off the table for me. That said, I am more interested in waiting for a slim/pro model at this point and if the difference between that model and the current one isn't too great then at least the original model will probably get a steeper sale in January next year.
Wouldn't be surprised the DualSense controller sales have gone through the roof too at 30% off. Can't remember PS4 having similar deal sales like this that ain't Black Friday. The more I think about it the more it feels a little weird like somethings going on as to why or maybe it's just clever marketing to get more gamers on PS5. Sell the PS5 for less than usual but make huge gains by getting many more PS5s sold than usual
@hbkay
Take your pick it is one of, or a combination of, those three. At the end of the day - who cares how many beans Sony has.
@Cashews
Well, it certainly isn't the third bullet point.
@Cashews Sony is not happy with the number of consoles sold, I'm doubting this one considering they've recently announced 40 million PS5s sold and not just shipped or sitting on store shelves, every single one of those 40 mil are in gamers hands. Considering the pandemic and shortages Sony went through 40 mil sold is very pleasing if you ask me. Maybe these recent deal sales are Sonys way of trying to make up for those sales that were much slower than usual during the pandemic
its on offer till 10th august because they want to clear out the disc version of the console. thats why the digital versions not on offer
the new version will be one model a digital ps5 and you have to buy an additional disc drive of you want it
Was wondering if the cut was even necessary due to the competition being a 7 year old handheld and a console that never seems to gain momentum.
But clearly it's helped shift consoles, those thinking about upgrading from PS4.
@Cashews "Developers are not happy with the number of units sold; so they are not developing for the console"
Is this a developing story? I hadn't heard about it at all.
Maybe I'm misunderstanding the context.
Now pleaaaaasee give me a PS5 Slim. It's either that or I have to buy a completely new tv cabinet.
@Beerheadgamer82 do you think shareholders care that the Sony didn't have supply during the pandemic? They don't. What they care about is trajectory of this console and it's market share against the more popular console: the Switch. More importantly - what Nintendo plans on doing in the next 18 months.
WGAS about the marketing story of 40M consoles? That is for gamers. Gamers and the business world are two very distinct entities. Sony has projected this out and they are either happy with it or not.
@trev666 yh that's gotta be it. So there's potentially 3 new PS5 consoles coming by the end of next year. A slim, a detachable and a potential PS5 pro towards the end of 2024. I'm doubting the slim as I think the slim will also be the detachable and even when adding the disc drive it'll still be slimmer than the current PS5
@Shepherd_Tallon No of course not - I'm following logic and observation. The console with the most sales always gets the most games. The Switch right now has what? 30-50 releases a week? Some great, some meh some absolute trash shovelware - but Nintendo still gets their 30%. That is the sweet spot. Constant releases. Constant revenue.
@TheCollector316 it might be - The schedule is a trickle. You want everything on the machine - not just the big hitters.
It's amazing what a price cut can do. I am still baffled Sony even raised the prices in the first place.
@DotM just buy the new TV cabinet, it'll be cheaper 🤣
@Cashews I don't claim to know any business talk of these giant company's. What I do know is 40 mil in less than 3 years and in the middle of a pendemic is very impressive. The Switch released in March 2017 and has constantly sold great numbers 2nd to none. PS5 released in November 2021 during a pandemic almost 5 years after the Switch and with Switch having 100 mil sold by the time the PS5 originally released. Of course the Switch is gonna be the more popular current console when it's been on the market almost 5 years before the PS5. Even though the Switch ain't current gen and wasn't exactly current gen on the previous gen
@MS7000 Due to high inflation, inflation is now dropping
@hbkay Because they can, if 100 million people have PS5s rather than 40 million.. well you sell twice as many games.
@Beerheadgamer82 it is okay. Not great. It was a huge missed opportunity. One would successfully argue the main reason FOR the Switch's success was the pandemic. People were buying Switches and gaming PCs like a people possessed. Until about 18 months ago.
Sony didn't have the inventory to meet demand. That could have been because they just couldn't ramp up production or it could have been because of artificially restricting supply to drive demand - as Sony likes to do during their hardware releases. Who knows in this case - production would have been impacted mightily leading up to the release.
Doesn't matter now - the past is written. sidebar: Sony released in 2020 not 2021.
Of course the Switch is current gen. The Wii U competed against the PS4/Xbone and they ramped up the release date of their current gen hardware - The Switch - because of the Wii U's failure.
PS4/Xbone/Wii U all release within a year of each other. The three now are the current gen. People here are so goofy with that ****.
@Cashews
Yeah for sure.
Lots of third party games will launch on Switch for the install base. Especially the more niche titles. They need numbers and they're more likely to get them on Switch because of the sheer number of Switch units out there.
I imagine the more demanding third party games like Gran Blue Fantasy Relink will release on PS4 and PS5 instead of Xbox for the same reason.
That's all fair observation.
But the "developers are not happy" part, is there a specific case where a developer has said PS5 is not selling enough or is that hyperbole on your part?
@Shepherd_Tallon I wouldnt call it hyperbole - I wasn't trying to get an emotional response or trying to exaggerate. I just wrote it. I was only writing it as a generalization - no news here.
I've always found that video games as a form of entertainment is the only one where most popular always means best. It is where you get everything - horrible shovelware, quirky japanese games, retro games out the wazoo, the big hitters...everything. Being niche for hardware is not a good place to be.
Music, painting/sculpture, food, pretty much everything that isn't gaming being the most popular is very rarely good. Its a funny thing.
As an analyst for a large regional bank and economics major, I greatly approve of the use of "price elasticity" here, @get2sammyb. Not many folks know what that term is, though they understand the concept. For further reference, when goods or services are inelastic, you have to buy them at any price (things like life-saving medications, food, and so on).
@Cashews oh my bad got my date numbers mixed up, almost 4 years instead of almost 5 years then, my point still stands though. it's very debatable as to whether the Switch is current gen or not or last gen. What it has done though is get all their Nintendo handheld fans (of which there is a lot) and combined them altogether with their console release. It's one of the smartest moves in gaming history imo and it's genuinly payed off as the numbers don't lie. Also the Switch being the cheapest on the market with various different versions to go for has helped with sales for sure. I'll ask a question, if Nintendo released a genuinely updated home console (not a hybrid handheld) with a possible 4K and a possible smooth 60fps and possible ray tracing like the other two current gen consoles do at a price of around 400, 450 or maybe close to 500 do you think it will be as successful as the current Switch has been, I don't think it will?
@Luigia All their upcoming games are PS5 only, they even cancelled the PS4 version of Lost Soul Aside so safe to say from now on since stock issues are sorted that PS5 is the focus now, no more PS4 games
Time to pick up the pace with the games. PS4 has been respectfully supported, the PC ports are flopping left and right, I want to see a PS5 ONLY push.
@Beerheadgamer82 I think if Nintendo just released a traditional docked console it wouldn't be nearly as popular as the Switch. I think for Nintendo to be that successful they need a hook - which they are usually the best at.
Maybe they have picked up quite a few fans over these past few years. But I don't think anyone cares about ray-traced, 60 fps, 4k Mario Wonder.
Personally I wish they'd team with Meta and go hard after VR. It would be crazy risky but that's what they do. I think they'd be the only ones who could pull it off in a real way. Make Mario fully VR somehow - revolutionize the hardware and genre like they did with Mario 64/thumbstick.
what do you think? what's the next step for any of these makers?
@TheCollector316 I was an econ major as well - when I was in school a common item used for inelasticity was cigarettes. I always wonder if that still would apply today...
@marty8370 My mistake, I wasn't aware inflation is now negative, hence the sale. I look forward to my food bill going down as well now.
@MS7000 inflation still very high. In the UK it is 8% - which is not fun. The US started attacking it earlier, and more aggressively - it hovers at YOY 3%. Still high compared to last 20 years but under control. Only Japan got it right.
@Cashews Exactly. And just to make clear to everyone else, even if inflation decreases from, let's say 8% to 7%, prices will still increase, just at a slower rate. This is something that is misunderstood by so many, including some of the biggest news companies.
I decided to finally get a PS5 Digital Edition after getting a 15% off voucher (up to £50) on electronics from Amazon. Didn't really want to say no to it considering it only cost me just under £340.
@Cashews I haven't gamed on Nintendo since the original Wii and 3DS. Around 2013/14 being my last time on a Nintendo?. I just wanted Nintendo to do a more traditional home console like it did with the Gamecube even though Gamecube didn't do so well for itself. Plus the fact I'm well into the better online experiences the PS4/5 has and the whole trophy thing I really enjoy quite a lot on many games these days. If Nintendo did a far more up to date home console with a really good controller for it and far better online with their very own versions of trophies/achievements I'll be all over it and they'll end up with far better 3rd party support on almost every 3rd party game like PS and Xbox mostly does. Obviously not played Switch cloud versions but it looks like they suck? from everything I've heard. I wouldn't mind playing with Mario and Zelda in 4k and possible smoother fps and bit of ray. I'd really love to try 100% platting a new Zelda or Metroid game in 4K and better fps with ray
@Cashews I am aware. I was being overly snarky in my comment just now. =)
My comment was more in response to the idea that Sony only raised the price of the PS5 from £450 to £480 to be in line with inflation. I suppose we could argue that perhaps the cost of components has indeed gone down hence the sudden firesale of PS5s but given the rumours of the new SKU, I am doubtful that is the full explanation.
@MS7000 I gotcha. I recently bought Asura's Wrath. Haven't played it yet but I'm looking forward to it. One of the few Capcom games I wanted to play but never did - at the time I loathed their dlc practices- with that one especially.
@Beerheadgamer82 Switch cloud games are beyond terrible. I've played them as a demo - and because of that wouldn't buy them with someone else's money even.
I am kind of different. I was way into achievements and trophies - to the point I was playing horrible games because of them. The Switch was refreshing in that it didn't care about that stupid, addictive-on-purpose junk.
As far as a controller - the Switch Pro is basically a carbon copy of the Xbox controller - imo the best in the industry. So for a few extra bucks it's doable - I only use the pro unless I;m in a room full of people using the machine. or a game designed for the switch controllers like Mario Party.
we'll see. Nintendo's next hardware announcement is going to be watched by everyone. They are on a tear with the sales and the movies and the theme park - what they do next is a big deal imo.
I hope this fire sale leads to a really well-made PS Slim personally. The last slim I owned was the PS2 and gosh dern it - what a beautiful machine that was.
@deathaxe
Yes, that is a good thing, overall, but not so much with PlayStation directly. Due to Sony's pricing strategy, you're not getting screwed anymore (or as much). Sony hasn't been known to efficiently adjust prices due to purchasing power of specific currencies.
@Cashews "I've always found that video games as a form of entertainment is the only one where most popular always means best."
I've made this observation myself in the past.
I think there's a balance in perceived cost/value too though. For example Nintendo will always have Zelda and Mario Kart and it always seems to be cheaper than everything else, so I will always get a Nintendo console.
Simple as that.
Yet for my tastes PlayStation is the "best" platform. I'll always get a PlayStation too because PS has earned my attention and my wallet over the past 25+ years.
However, talking specifically about Switch it doesn't matter to me if it's best or not because;
I'll never need more from Nintendo than those three things.
(Maybe more ambitious hardware, but they've more or less proven that they don't need that.)
@Cashews Hope you have fun when you get to it. It is a strange game, but one that I would definitely love a sequel to. The DLC practices were very scummy. I heard that it was spun as the game not performing very well so they wanted to give a definitive ending, but this is also the same company that had the whole Disc Locked Content debacle with Street Fighter X Tekken, so...
@Sam_ATLUS you just made my day 🙏🏻
@Cashews lol the original PS2 is far sexier than the slim PS2. Used to hate how the slim PS2 opens meaning the slimness of it all became completely useless. The DualShock 4 was a very much needed improvement at the time and the DualSense (for me at least) is now the greatest controller my gaming paws has ever gamed on
@Beerheadgamer82 Nintendo doing a home console would not improve third party support for them, because nobody would buy the thing. People have demonstrated, time and again, that they want portable Nintendo hardware. Even Nintendo's worst-selling major portable device outsold virtually all of their home consoles.
Thankfully, we're reaching the point now where you can pack tech into a hybrid device that can run the majority of major games. The raw power of the next Nintendo console will probably be on par with or better than the PS4, and with clever use of upscaling tech like DLSS, will be able to run the vast majority of third-party games on and off the TV.
@Beerheadgamer82 Nintendo won’t be able to compete on specs. The system will be too expensive and most Nintendo users aren’t as graphic/performance focused. Also, by essentially being a generation behind as far as hardware, it leaves some wiggle room for the future…. What I am getting at is that we are already at a point of diminishing returns as far as hardware. Honestly, I am still impressed with Ps4/xbone and think it would be pretty amazing to be able to have this level of performance in a handheld….
@Cashews The PS5 and Switch are basically neck and neck when you align their charts based on when they released.
More likely they are clearing stock for the replacement unit, and/or trying to catch up to PS4 which got to 40 million a couple of months faster. Considering the issues with stock around the first year or two this is hugely impressive.
@rockodoodle @Ralizah like so many I adore Nintendo for doing its own thing but imagine Nintendo 1st party games with nearly all the 3rd party games included as well on a genuine current console. Yes I know it doesn't look good considering their last attempts at the more up to date traditional home consoles but that's what I want, obviously Nintendo don't make consoles specifically for me. It's looking most likely they'll stick to another hybrid with some obvious improvements but backwards compatibility with the Switch is a must for a far better chance of continued success imo. Aware games having trophies doesn't translate to being a better game but if Nintendo has their very own trophies/achievements on their new console I might just be back on board
@themightyant Yes but that chart is ignoring the huge spike the Switch got from the pandemic - which the ps will not get.
Animal Crossing Factor we can call it
@Beerheadgamer82 I'd be all over a Nintendo achievements system, personally, but I also sort of like how I can complete a game to my satisfaction on Switch without feeling like I've missed out on something by not completing an arbitary list of requirements. But I've also repurchased games specifically to plat them on PS4. So it goes back and forth, and I very much understand the preference.
Although it'd need to be implemented similar to Sony's system. Steam/Xbox achievements are underwhelming to me, for some reason.
Being the only platform without bc would be a huge strike against them, especially early on. Given how well stuff like Mario Kart 8 Deluxe, Breath of the Wild, Animal Crossing, etc. continue to sell, it's very much in their best interest to make it happen.
Either way, in practical terms, I'm guessing the hardware gap will continue to shrink from the current status quo of Switch vs. PS5 in the future. Switch 2 (or whatever it is) will be much more capable, and the tech improvements on the home console side are going to keep underwhelming as time goes on, since we've reached the point where games just don't look that much better on newer hardware.
@themightyant isn't it just? And yet people still say Sony is 'finished' on a regular basis.
Ask me if I could only have one console out of Series X, Switch and PS5, heck include PC if you want, and it's an easy choice for me to go with Sony.
I'll probably even stump up for a Pro if/when it happens too. Not because I'm bothered about 8K, because I'm not at all, but because it will hopefully mean the end of any 30/60 framerate compromises. Not expecting 4K60, but a lot closer to it and with more stability.
@Ralizah there's now been trophies available on PS consoles longer than when they wasn't a thing and now it just feels genuinly strange to me these days when I'm not thinking or working towards the next trophy. First of all of course the game comes first as to whether or not its for me, then checking the trophies comes afterwards. Trophies are just an added incentive, challenge or added option to the whole gaming experience and sometimes an added sense of accomplishment when you've 100% all the ideas that the devs tried to come up with on their game. Also if really enjoying a particular game it makes me want to 100% the trophies even more and potentially giving me way more gaming time in the game I'm really enjoying
@Powerplay94 Very good point about the purchasing.
I have PS+ Extra but I still buy the games I'm really interested in, often in their first decent sale. I view Extra as a big library to browse and dip in and out of, rather than the be all and end all that GamePass seems to be.
Sony are fine, all the whipped up 'concern' is ridiculous and these figures prove that.
@Total_Weirdo You mean first-party support? Honestly, I wouldn't wait. Third-party support has been amazing. I'm drowning in games like I never have before.
I know this hasn't been the feeling outside of the VR bubble, but I guarantee you there are more than enough great VR games to keep you entertained for years already. With many more coming.
The games media coverage of PSVR2 has been appalling. Push Square is certainly better than most, but I would follow Youtube channels such as Without Parole to really get the vibe.
And to be fair, Sony has been a little too quiet on the marketing front, but support hasn't been bad at all. Horizon and GT7 are no joke, and Sony has been funding many VR versions and ports such as Resident Evil (8 and 4).
Take the plunge, dude. The water temperature is just perfect.
@Luigia holding it back from what, tracing more rays or tasking the draw distances with yet more skin-pore-magnifying resolutions for wall carpet TVs and/or PSVR2? Or has the industry come up with something yet unheard of in terms of gameplay and worldcraft proper that wouldn't have been technologically possible over the last two or three generations?
@nhSnork I just want a world without AAA games made for a mechanical HDD 🙏🏻
@get2sammyb When does this promotion end?
I'm kind of tempted to wait to see what the new console is but this OG Fatty PS5 is tried and tested - No YLOD/RROD after 3 years.
The new one may have issues that come to light within 6 months and I don't want to miss out on these awesome price cuts.
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