Sony Indicates It Won’t Launch PlayStation 6 at Major Losses
There’s been a long-standing belief that both Sony and Microsoft have been selling their consoles at a loss for several generations, banking on the hefty 30 percent cut they take from game sales and subscription services to make up for it. During the Epic v. Apple trial in 2021, Microsoft revealed it had never turned a profit from console sales, and in 2022, it was disclosed that the company was losing $200 on each Xbox sold. This was before the current crisis in memory and storage costs, which has driven up prices across the board for all consoles. Recently, during a Q&A about the pricing strategy for the PlayStation 6, Sony stated, “As a principle, we do not intend to sell hardware at significant losses.”
Rumors suggest that the PS6 could launch in 2027, marking a seven-year gap since the PS5 debuted, which aligns with the trend established since the PS3 era (previous generations typically lasted six years). However, with the skyrocketing costs of CPUs, GPUs, and RAM expected to worsen next year, there are concerns that this could push console prices into a range that would alienate many potential buyers. A question posed during the Q&A inquired whether it was reasonable to assume that Sony would continue to prioritize hardware profitability in its pricing strategy.
Sony’s response started with some vague comments about “hardware as the base for providing the game experience,” which felt a bit off-topic, and then awkwardly referenced the PS Portal before addressing the pricing issue. The company stated, “As for pricing, it is not realistic for us to absorb all the component cost increases, and we have already implemented some price increases outside of Japan.”
That “some” is quite significant, considering the magnitude of those price hikes. Sony added, “At present, however, sales are proceeding as planned, and we do not believe this has led to a decline in customer demand.” This claim seems a bit odd, especially since the PS5 reportedly had its worst May in 26 years. The statement continued, “As a principle, we do not intend to sell hardware at significant losses.”
The key term here is “significant,” implying that there’s no expectation for the PS6, whenever it arrives, to be a money-making machine. Given the current climate, where building anything modern is likely to cost over $1,000, it’s a tall order for a console, especially since the PS5 launched at half that price in 2020. Adding a substantial profit margin seems even more unrealistic.
These are truly unprecedented times, with chip and RAM manufacturers acting like a cartel, as most tech resources are being consumed by heavily indebted AI companies in a frantic race for dominance. Even a giant like Sony is struggling to navigate this chaos. Considering the still-strong sales of the PS5 (despite a noticeable dip) and its impressive graphical capabilities, launching a PS6 now seems ill-advised. Waiting until 2028 might be the most sensible move.
