PS5 damages - not bad, though

PlayStation 5
According to Sony's financial statements, their latest creation is losing money. Despite this, analysts are urging not to worry about the company.

Sony recently released its financial statements, which made it clear that their next generation console is selling at a loss. However, for the entire industry, and for Sony in particular, this is not bad.

The fact is that initially the company decided to sell the console in the United States at a fixed cost, which is significantly lower than the production costs. Sony did not disclose the exact numbers, but said that the period from October to December became unprofitable for the company precisely because of the release of the PS5. But it's not all bad - financial analysts argue that production costs are offset by Sony's online resources, as well as various network and administrative services. Recall that past consoles from the company also sold at a loss at the initial stage of launch - all for the same reasons. Moreover, this time the pandemic also played a role.

Interestingly, this is a fairly typical situation for the entire industry as a whole - Phil Spencer talked about this a few years ago. Then the head of the Xbox stressed that it does not matter for the company how many consoles it sold - the main thing is the various online resources that accompany these consoles. Some companies, such as Nintendo, are trying to go against this "law of the market" and make money right away from selling devices.

Authored by: tentacl
Published on: 05 February, 2021
PlayStation 5


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