Sony States That They Are Selling PlayStation 5 Units At A Loss

2020 was a terrible year as the world was essentially shut down thanks to the worldwide health pandemic outbreak that’s known as the coronavirus. We’re still dealing with this pandemic today with markets quarantining or setting up new rules to abide by. Last year we also saw several video game titles get delayed out of the year. This was all due to the fact so many development studios were forced to close their doors and required employees to work remotely from home. 

As a result, there were delays to development which pushed projects back. However, we did get the release of both Sony’s PlayStation 5 and Microsoft’s Xbox Series X/S platforms. Both companies unveiled that their consoles would be hitting the marketplace in November of last year which happened without too much of a problem. Unfortunately, the big issue here was that there was such a desire for entertainment with consumers around the world that these units were quickly bought up.

We’re still dealing with little to no stock at various retailers. If a consumer wishes to purchase a unit for something like the PlayStation 5 then they would have to get lucky with a restock for a retailer or pay above market value from a reseller online. Whatever the case may be, you think these units being sold would be a huge profit earner for Sony, but you’d be wrong.

Sony revealed during an investor’s call this week that they are actually selling the PlayStation 5 consoles at a price point that’s lower than what it costs to manufacture them. It’s a strategic move for Sony and it’s working. During the investor call, Sony made note that while they are selling the PlayStation lower than what it costs to make, they are recouping the cost and earning a profit through their game sale and digital content purchases. 

Of course, right now we’re not sure just how big of a hit Sony is taking with the PlayStation 5 by itself. That information may not ever come out officially to the public, but it looks like there are no concerns for Sony when it comes to making a profit. This latest generation of gaming has also come with a bump in price for AAA video game titles as well. 

Source: Polygon