Disk model Playstation 5 will reach the payback level starting from June 2023… President and CEO announced during a presentation for investors SIE Jim Ryan…
According to the head of the PlayStation, the cost of components for the PS5 will remain at the average wholesale price of the console until June, after which the production will start to go up.
“Another area we have focused on is console economics. I am pleased to announce that the standard PS5 will break even in production from next month. Going forward, we predict the console will gradually become more profitable.”
Ryan said nothing about the diskless PS5, but noted that the standard version of the console now makes up the majority of the PlayStation 5 circulation… The company expects that the distribution of console sales between the two console models will not change much in the current fiscal year, but as the lifecycle lengthens, it projected a slight increase in the share of the digital version.
There has also been a decrease in the importance of hardware in the SIE business model.as software, services and peripherals now account for the vast majority of PlayStation sales. The consoles brought the company everything twenty% revenue in FY2020, up from 48% in FY13.
It also turned out that Between launch and March 2023, digital PS5 owners bought at eight% More complete games and DLCs than PS5 disc ownerswhich, according to Ryan, slightly exceeded expectations and provided “very encouraging” data.
The razor-and-blade business model has traditionally been the norm for console makers, at least in the early stages of the lifecycle when devices are sold at a loss but money is made from selling platform software and services.
For example, Microsoft recently confirmed that she has never actually made a profit on the sale of Xbox consoles. The company makes the main money on games and subscriptions.
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