3 ms·

The PS5 was breaking even less than 6 months after its release. They don't subsidize anything. BTW, Nintendo also don't subsidize it. The BOM of the Switch 1 an

by braiamp 2mo ago

The PS5 was breaking even less than 6 months after its release. They don't subsidize anything. BTW, Nintendo also don't subsidize it. The BOM of the Switch 1 and 2 is lower than the total price including the margins for retailers!

wilg 2mo ago
This is a conversation about Sony, not Nintendo. As far as I can tell from current data, Sony is still subsidizing PlayStation consoles overall.
- bryanlarsen 2mo ago
  Sony stopped subsidizing the PS5 8 months after launch. https://www.pcmag.com/news/sony-says-499-ps5-no-longer-sells-at-a-loss https://www.pcmag.com/news/sony-says-499-ps5-no-longer-sells...
  - wilg 2mo ago
    I can see why you might think that, but that is not what this article claims or what Sony said. The CFO said this in 2021: “But the profitability of PS5 in -- there was this view of reaching breakeven point in June, but PS5 breakeven point for standard edition, more correctly on standard edition, that's how we explain the situation. And it's been progressing according to the plan. Overall, hardware profitability and peripherals hardware profitability, including peripherals, as we have been saying, is proceeding smoothly.” And PCMag is inferring this means ONLY the $499 edition of the console which they previously suggested could become profitable later. It doesn't mean every edition of the PS5, and things have changed since 2021. And Sony said it was having losses on consoles as recently as 2024.
    - bryanlarsen 2mo ago
      Sony, like Steam, aims for zero/minimal profit on hardware. Slightly missing such a 0 target sometimes is different than an explicit subsidy.
MiroslavPokorny 2mo ago
Shops and distributors take a big chunk. The shoppe price is not given in whole to manufacturer if it was who would be paying the shoppe rental and employees ?

3 ms·

The PS5 was breaking even less than 6 months after its release. They don't subsidize anything. BTW, Nintendo also don't subsidize it. The BOM of the Switch 1 an

by braiamp 2mo ago

wilg 2mo ago
This is a conversation about Sony, not Nintendo. As far as I can tell from current data, Sony is still subsidizing PlayStation consoles overall.
- bryanlarsen 2mo ago
  Sony stopped subsidizing the PS5 8 months after launch. https://www.pcmag.com/news/sony-says-499-ps5-no-longer-sells-at-a-loss https://www.pcmag.com/news/sony-says-499-ps5-no-longer-sells...
  - wilg 2mo ago
    I can see why you might think that, but that is not what this article claims or what Sony said. The CFO said this in 2021: “But the profitability of PS5 in -- there was this view of reaching breakeven point in June, but PS5 breakeven point for standard edition, more correctly on standard edition, that's how we explain the situation. And it's been progressing according to the plan. Overall, hardware profitability and peripherals hardware profitability, including peripherals, as we have been saying, is proceeding smoothly.” And PCMag is inferring this means ONLY the $499 edition of the console which they previously suggested could become profitable later. It doesn't mean every edition of the PS5, and things have changed since 2021. And Sony said it was having losses on consoles as recently as 2024.
    - bryanlarsen 2mo ago
      Sony, like Steam, aims for zero/minimal profit on hardware. Slightly missing such a 0 target sometimes is different than an explicit subsidy.
MiroslavPokorny 2mo ago
Shops and distributors take a big chunk. The shoppe price is not given in whole to manufacturer if it was who would be paying the shoppe rental and employees ?