Sony Sets Expectations Ahead Of PS6: No More “Significant” Hardware Losses
Overview & Key Takeaways
The current generation of gaming has only gotten more expensive lately, and it looks like the next generation of PlayStation consoles will also be a pricy purchase. With concern growing about the yet-to-be-revealed PS6 possibly selling for $1,000 or more when it launches, Sony confirmed that it's not prepared to take a "significant" hit on absorbing some of the costs for its next-gen hardware.
When quizzed about hardware pricing and profitability for the "next-generation platform" during a Q&A session at Sony's Game & Network Services division, Sony executives said that they recognize that hardware is ultimately the most important part of a gaming experience, and they want consumers to recognize this.
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"As for pricing, it is not realistic for us to absorb all component cost increases, and we have already implemented some price increases outside Japan," Sony Interactive Entertainment president and CEO Hideaki Nishino said. "At present, however, sales are proceeding as planned, and we do not believe this has led to a decline in customer demand. "As a principle, we do not intend to sell hardware at significant losses. At the same time, we are carefully monitoring the market and continuing to evaluate our approach. We believe it is important for us to make every effort to ensure that customers fully understand the value we provide in relation to pricing."
One thing worth noting from Nishino's comments is that sales are still within Sony's projections, even though PS5 consoles have only gotten more expensive with time. Despite that, May was a dismal month for PlayStation in the United States. Spending on PS5 consoles dropped 43% year-on-year, and overall unit sales fell dramatically by 58%, making May the lowest month for PlayStation sales in 26 years. It was also a bad month for Microsoft, as it suffered the worst May performance since the Xbox console first debuted in November 2001.
The ongoing shortage of memory chips and rising costs have also reportedly thrown Sony's PS6 plans into disarray, with some experts believing that it will only launch toward the end of the decade. Earlier this year, Sony increased the price of the PS5, and the company also said that it has yet to determine pricing or a launch date for its next-gen console.
Meanwhile, things aren't looking too good at Microsoft either. The Xbox Series X|S consoles are also more expensive than ever, and Microsoft hasn't ruled out the possibility of another price hike in 2027.
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The current generation of gaming has only gotten more expensive lately, and it looks like the next generation of PlayStation consoles will also be a pricy purchase. With concern growing about the yet-to-be-revealed PS6 possibly selling for $1,000 or more when it launches, Sony confirmed that it’s not prepared to take a “significant” hit on absorbing some of the costs for its next-gen hardware.
When quizzed about hardware pricing and profitability for the “next-generation platform” during a Q&A session at Sony’s Game & Network Services division, Sony executives said that they recognize that hardware is ultimately the most important part of a gaming experience, and they want consumers to recognize this.
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“As for pricing, it is not realistic for us to absorb all component cost increases, and we have already implemented some price increases outside Japan,” Sony Interactive Entertainment president and CEO Hideaki Nishino said. “At present, however, sales are proceeding as planned, and we do not believe this has led to a decline in customer demand. “As a principle, we do not intend to sell hardware at significant losses. At the same time, we are carefully monitoring the market and continuing to evaluate our approach. We believe it is important for us to make every effort to ensure that customers fully understand the value we provide in relation to pricing.”
One thing worth noting from Nishino’s comments is that sales are still within Sony’s projections, even though PS5 consoles have only gotten more expensive with time. Despite that, May was a dismal month for PlayStation in the United States. Spending on PS5 consoles dropped 43% year-on-year, and overall unit sales fell dramatically by 58%, making May the lowest month for PlayStation sales in 26 years. It was also a bad month for Microsoft, as it suffered the worst May performance since the Xbox console first debuted in November 2001.
The ongoing shortage of memory chips and rising costs have also reportedly thrown Sony’s PS6 plans into disarray, with some experts believing that it will only launch toward the end of the decade. Earlier this year, Sony increased the price of the PS5, and the company also said that it has yet to determine pricing or a launch date for its next-gen console.
Meanwhile, things aren’t looking too good at Microsoft either. The Xbox Series X|S consoles are also more expensive than ever, and Microsoft hasn’t ruled out the possibility of another price hike in 2027.
