The PS5 Is Being Sold At A Loss

The PS5 Is Being Sold At A Loss

The Main Point

The PS5 is currently the most popular console of the new generation. But, that comes at a cost. The PS5 is being sold at a loss. This means that every time a PS5 is sold, Sony loses money. This strategy does normally work, though, because it gets people to buy games for the console.

The PS5 is a great console, but the price does seem pretty low for the power that you are getting in it. That is one of the reasons that it is selling so well, because it is destroying the Xbox Series X in sales. It may not come as much of a surprise, but the PS5 is being sold at a loss. That’s right, Sony loses money every time that a PS5 is sold. This may seem dumb, but it is actually a strategy that a lot of consoles use.

The PS5 Is Being Sold At A Loss

How do we know this?

You may be wondering how we know for sure that the PS5 is being sold at a loss. Well, Sony let us know this in their quarterly report to investors. The reason that the PlayStation 5 is currently being sold at a loss is partially due to the shortage of components. This has raised the cost of the parts for the PS5, which means that Sony has to pay more to build each PS5. They can’t change the price due to the shortage, as that would greatly decrease sales. It could also cause some PlayStation users to buy a Xbox Series X instead of a PS5 due to the lower price. If the prices for components go back down, Sony may start making money off of each PS5 sale.

The PS5 Is Being Sold At A Loss

Why would they do this?

We know that Sony is selling the PS5 at a loss, but why would they do that? Well, it is actually a common strategy for consoles to be sold at a loss. The lower the price of the console, the more it will sell. This means that more people will be buying more games, and there will be more subscribers to that consoles subscription services. In total, the company normally ends up making more money than they would if the console had a higher price. This is the same situation with the PS5. Since its release in November, Sony has already sold 4.5 million PS5s, which is a very large number. That means that a lot of people are buying tons of new PlayStation games and PlayStation Plus subscriptions. For that reason, it is smart for Sony to sell the PS5 at a loss.

The Main Point

The PS5 is currently the most popular console of the new generation. But, that comes at a cost. The PS5 is being sold at a loss. This means that every time a PS5 is sold, Sony loses money. This strategy does normally work, though, because it gets people to buy games for the console.

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