Why the PS5 is LOSING Money
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- Опубликовано: 13 сен 2024
- Sony lost HOW much on the PS5?!
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PS5 was released in Nov. and still feels like its unreleased
Does the PS5 even exist?😆
Isn’t the ps5 the most successful ps launch ever? I guess it’s the damn scalpers that makes the stock seem less
@@bruhmoment5916 yup thats exactly what it is
Here’s a friendly tip, if you have family or know someone that lives in Mexico, there’s a higher chance that you get a ps5 or an Xbox, got mine because demand is as high as in the US, but the advantage is that there are no bots, good luck! 😃 👍
Ikr
Imagine how many they would have sold if they actually had enough stock
Or enough rocks
3 billion
probably bit more than now, considering up till now, scalpers still didnt reach the bottom of their pockets…
Probably still around 4.5 million. That number is shipped number and they're shipping as much as PS5 as they can produce and deliver it. The point is how much of PS5 is unactivated and how much is in the hand of consumers. You can probably take the Spider-Man Miles Morales sales number (Around 4.1 million) and roughly guess how many PS5 owners.
Imagine how many they would had sold, if the pandemic didn't exist.
Why is everyone freaking out because Sony loses money whenever they sell a ps5 this happens every time a console comes out
Sony always takes a loss on the hardware the games and services are the big money makers
@@agreedsnake1158 that's what I'm saying
Lol who is "everyone?"
I couldn't care less that Sony made slightly less billions than usual 🤦♂️😆
The difference the PS4 gen had no real build loss. Estimates put the build at $17 below MSRP. Sony declared that the PS4 device was designed to be below MSRP on the build. Nobody can blame Sony considering they lost over $3 billion on the PS3 gen (did not make a dime but loss for the previous gen because of hardware costs). The PS4 however really only had a launch loss. Which is the expense of getting the first console to the market (dev, initial ship, ads, etc..). That is a known expense. And they know how many consoles sales are needed to pay it back. Sony paid that off in 6 months. And Sony declared every console sold after that point was profit contributor. In other words, they didn't have to sell a game or service from that point onward to pay for every PS4 console sold. Contrast to a build loss, that loss requires each every console sold (not just X amount of consoles) to pay down that loss. It is a continuous number and takes quite a while before those build numbers can get near cost.
Unlike the previous gen the PS5 (just the base unit) is estimated to have at least a $50 loss on the build. Some estimated have at more than twice that. And the PS5 AD adds $70 on top of that ($100 - $30 drive = $70). So the PS5 AD is costing Sony at the low end around $120 per sale just on the build loss (not launch loss). Off of $70 digital game sale Sony take in about $22 as their cut (about $3 to $4 more then physical sale). And that does not take into consideration taxes and support costs (servers, the suits here, office costs, and pay to Sony itself, etc...). That $22 or so per game they get off a $70 is actually around $15 that Sony probably can call profit if the console was sold at no loss .Of course they get more money for first-party but 90% sales are third-party sales. So with rounding off things it won't make much difference here. After all this Sony still have to pay off each and every consoles sold at that loss (take expense column and get it to 0). So that the low-end ($50 loss) the PS5 base that is over 3 games. PS5 AD at $120 loss means for every sale they must sell 8 games. That is the reason they are making a lot less PS5 AD and (similarly) Xbox who is taking a bigger loss on the S over X is making less of the Series S. Because they both take a lot more sales and service buy ins to make that build loss back. The average gamer buys 3 games a year. Now we probably can say most buying a PS5 now are buying more games than the average consumer. So remember the PS4 gen is what we are comparing it to. Practically no real loss for the whole PS4 gen (almost every console was profit contributor).
And I bet you are saying what about services. Well, true there is that PS+ service that nets Sony slightly more then on game sale. But, it is not bought buy every one. Sony sells PS+ to about 40% of PS4 buyers and Xbox sales Gold to about 45% of its users. So (rounding) 1 in 2 PS+ subscribers. Needless to say every PS5 console sold (especially the PS5 AD) is probably not going to be a profit contributor for at least a year after its sale. That is not what happened with the PS4 gen. Where other than that first 6 months every PS4 was a profit generator. And this is probably why Sony had an about face on the "we believe in gens". They need that PS4 revenue to support the PS5 loss numbers for several years. All to keep it in the black. Without this their investors would see big downward angle as more buy the PS5 and less PS4 are there to support the losses. And companies and investors like increasing profits to drive up value in the company. Remember those profits they had the PS4 will not be reflected in the same way on PS5 because they have to take that revenue that would be profit (under a PS4) and pay down that PS5 console loss.
So the lease successful gen for Sony was the PS3 gen where after the redesign (cutting off a lot of the PS3 features) they had about $120 (similar to the PS5AD) loss going forward. They didn't make a dime that gen and was one the main reasons for the companies financial ills in 2010-2014. The PS4 reverse, a gen that had no loss, and made lots of profits was the reason they were back. The PS5 returns us to a gen that is taking big losses. More importantly there no industry analysis that is saying consoles are going to bigger hardware sales overall this gen then they were for the PS4. And lets not ignore Xbox is actually competitive at start this time. So even if Sony sold as many consoles and with games sales and services being the same they would be making a lot less because of the each console losses to make up. Hence IMO why you will see Sony seeking more revenue from alternative places like first-party releasing very close if not day and date on PC. And revamping PSNow to be competitive option to Xbox GP for console owners and those that don't own a PS
By these these guys do not know anything about build pricing. First, stores don't make shit on the console. They make all their money on games and accessories. That is why they push those bundles. A Best-Buy makes about $12 of that MSRP. And as for the Blu-Ray there is more to cost then just the hardware. There is the licensing of the Blu-Ray from the BDA (blu-ray disc association) Sony still pays the BDA money everybody else does And last time I checked it was around $13 per hardware device. They just get cut 15% cut of the profits from the BDA back. Most of the BDA money goes to Panasonic, Phillips and MIT.
Except ps1 and ps2 haha
Austin: sony is losing on ps5s
Inside austin: i'm losing on ps5s videos
How you doing door kun nyx being sealed well?
@@agreedsnake1158 if you're still alive then yes i accomplished my mission
hi makoto yuki from persona 3
Persona 4
@@Wahid_on_youtobe makoto yuki from persona 4? are you okay?
Austin:“Digital games rarely go on sales”
PlayStation Flash sales: Let me introduce myself
@Rayyan Haque yeah he is
Isn't a Playstation player a d it shows
Xbox always have sale
@Gay people are utter shit broke payers are on xbox serrie s. Couldnt afford a real next gen consule.
@Tony Dinh No, more like a PC player.
Sounds like their experience is only with Nintendo xD
the scalpers to sony: "our playstation"
Its illegal to scalp now
It also hurts Sony when all this scalping happens. Yes, they sell the console, but then it sits in storage while the buyer tries to resell it. While that happens, Sony makes no money from software and service sales for it.
I’d be afraid of purchasing consoles being shipped right now from China. With shortages of parts and labor, they’re bound to be cutting corners at the factories.
Those 4.5 million ps5 or almost all ps5 were scalpers owning it and reselling it
Yeah that’s not remotely accurate my friend. According to most reports it’s only 15 percent through scalpers. Still a high number but it’s not 4 million. A lot of people actually got them during the first release because the release happened out of nowhere. Like the guy in the video, a Reddit forum is not a judge of how many were scalped, because only people that don’t get them complain. It just shows you how many people are trying.
Why don't they talk about the xbox that is also completely sold out everywhere! Why do the media push Sony over Microsoft!! It drives me crazy how people can't see how bad there being manipulated....
why manipulated? it's not just the console, it's the games that come out too. XBOX has a good console, but Sony has always had the blockbusters everyone is waiting for. XBOX is lucky that Sony cannot produce as much as it would like, otherwise the numbers would be completely different
@@stanislavwaisemiller6076 you've completely missed the point its shocking!
Videos like these are everywhere saying how PS5 is selling out and there's little or no mention of the fact xbox is also completely selling out. Its bias media at its best as always.
Your talking about games for some reason but ok I'll bite.
Sony does make some great games but at the same time xbox now has an enormous amount of studios under its belt. The gen will not be a repeat of last gen and we're already seeing that with BOTH consoles being sold out everywhere (not just ps5's).
Anyway. My point stands with this type of journalism. They need to state that both consoles are not doing well rather than just sony. They look bias and petty doing things like this.
Google gave up too early on their 1st party studio. Had they simply launched Stadia as a new Gaming service for many 3rd party titles, and then began developing their 1st party titles, Stadia could become the rival to Game Pass.
The problem i guess was that Google made Stadia look lang THE streaming service, and then fell again to their Google Issue of launching something and not knowing how to go with it.
TBH I think the shortage issue is more prominent because a) each time a scalper brags about it online it gets covered why the whole internet and b) because people who are frustrated about not getting a ps5 are not so vocal as people who already have it
I feel so lucky I got one, I’m probably one of the least amount of 13 year olds that have the ps5 lol
@ nobody wants to see that garbage that you uploaded to yt
@ or I'm guessing your brother
Honestly microsoft and sony cannot brag their sales numbers for ps5 and xbox series x/s cuz they still havent addressed the scalper issue which is still rampant
Let them lose money on not selling games, their loss for not making sure there is console for everyone who will actually use them, not just resell them
Am I the only one that doesn't get why the switch is so popular?
I don't get it either, but i think nintendo appeals to a completely different audience. People who play now and then or want to play on the go and there are probably a lot of them.
@@stanislavwaisemiller6076 makes sense. I bought into the switch hype when it first came out and I swear that thing collected dust for 2years. I just gave it away late last year. The games just didn’t appeal to me, I like the portability but thats it
If only they had easier ways to get most of those 4.5 million+ units to actual users and not scalpers, maybe more digital & physical copies of video games would have sold better.
4.5 MILLION BUT HOW MANY ARE IN SCALPERS HANDS AND THEN HOW MANY WERE BOUGHT FROM SCALPERS MEANING THAT THATS ABOUT 500 LESS FOR THEM TO SPEND ON GAMES THE VERY THING THEY NEED THEM TO SPEND ON
Every loses except the scalpers
Well considering the fact that about 87% of ps5 owners are subscribed to ps plus, I'd imagine that vast majority of PS5s are in the hands of actual players. Not scalpers.
@@somethingwitty309 that means nothing, that still don't change the fact that most ps5 are in hands of scalpers, forget ps plus what's important is how many ps5 are active.
For example, it's not the same 87% of 500 to 87% of 1000.
@@andresnaranjo742 That's 87% of all ps5’s out in the market, in other words, 87% of the FULL 4.5 million PS5’s that have been sold. I.E 3.91 million PS5’s are actively subscribed to ps plus. By the way, I didn't calculate that number. Sony reported that 3.91 million PS5s are subscribed to ps plus.
So it does mean something.
It means that the vast majority of Ps5’s are being used by players. Not scalpers.
Honestly, it's ludicrous to believe that most ps5’s are held by scalpers and not in use. Yes, scalpers have definitely bought a sizable number, but this narrative that somehow the ps5 sales numbers are “invalid” because scalpers supposedly hold the majority of them is both wrong and stupid. The only reason that scalpers buy consoles is that people will buy them from the scalper, now that sale doesn't go to Sony, but the buyer does become an active ps5 owner.
@@andresnaranjo742 all reports are showing 10-15 percent scalped. Still a lot , but it’s nowhere near half.
Did I miss this in the video, or did you two not mention it?
Sony and Microsoft make their money off of their online store transactions. But when scalpers are keeping the consoles out of stock, it's keeping those consoles out of the hands of people who would actually _use_ the consoles and spend on those stores.
The scalpers are directly harming Sony's (and Microsoft's to a lesser degree) pockets, and I'd bet by a _huge_ amount. Wouldn't that be where the most lost profit is?
Digital games go on sales all the time on Playstation and Xbox first party and third party alike.
It’s only Nintendo first party games that never goes on sales maybe Kirby for 20$ off and that’s it and the third party games that go on sales are hit or miss most of the time.
Nintendo games goes up in price
Yeah, but looking for specific games to go on sale digitally may not happen until like Black Friday. A disc could be like 20 dollars year round and you don’t have to worry about it. It’s good to have options.
That creepy stare from Austin at the beginning... Spooky.
Not sure why everyone keeps saying digital games don’t go on sale, Xbox runs weekly sales, daily spotlight studio sales, and plenty of large sales in between. Hell, they just launched their weeklong Lunar sale, and all these include current games. Can’t tell you how many times I have seen Yakuza Like a Dragon and the new COD on sale, as well as countless others. I prefer physical media, especially now with backwards compatibility, but the constant harping that digital games don’t consistently go on sale is untrue.
Nintendo on the other hand is incredibly tight on sales, but even their physical media (1st party) rarely goes on sale.
Just like the companies that make printers. they don't make money on the printers. They make the money on the ink that you have to replace. epson even has a monthly subscription on how much you print per month or something like that.
PS3 flashbacks...
The scalpers bought the majority roughly 60% is in their storage
Yea, maybe more. Poor Japanese sales too.
Remember the South Park episode with the devil and jesus boxing match. Everyone bet against jesus except the devil... Maybe Microsoft are the scalpers... 🤑🤑🤑🤣
No
.. You Can bet that some 10 - 20% of these being "resold" is people committing various types of fraud because people are so inclined to get them.
People bought ps5s for nearly double their retail price. Sony could have sold them for $800 and made their money back.
Nobody would buy it then
Yeah they would make the money back if they have made the same numbers sold. Yet when it was a rumor people have said it would be more expensive than the ps4, and people were already saying those prices are too damn high. That was around the ballpark you said. Especially knowing Sony said they're going to still make ps4 games while the ps5 is out. Now how long? Idk. But who would want to buy it now when they can wait a bit longer when the hype dies down.
@@adelgado8917 tbf I wouldn’t want to play the PS4 version of any modern game especially on a base ps4
While some/many PS5 are in the hands of scalper waiting to sell them at twice the cost, those console don't generate any profits on game sold for Sony.
ugh, if Sony was smart, they should've made the price a little bit more expensive since scalpers are getting away with $1000 per PS5
Frr i agree with you man !
Ive literally never talked to or met some one with a next gen console
I’ve met one dude 😭
Hello 👋
Sony made $800 million profits on games alone. How is that losing money?
Wow buy a game for 70 then sell it for 3 what a deal!
I really want one but I can’t stand the white model after seeing it in person can they PLEASE come out with literally anything that isn’t white not even a bundle just the console itself I’ll even take pink at this point
They are losing money because the money maker which is the ps plus subscriptions aren't happening because the systems are sitting with scalpers waiting for a sucker to get tired for waiting.
Not sure why both companies were scared to death to price the consoles at $600... They were both going to be sold out for a long while regardless.. When the sales drop enough.. You just drop the price.....
This is why hardware sales don't really mean much, both Playstation and Xbox sell their consoles at a loss.
They will recuperate that loss from game and subscription sales.
This is also why PC is Xbox's cash cow, With a PC, you basically shouldered the entire hardware cost yourself, Microsoft and Xbox will simply profit from every single game software and subscription you buy
microsoft has said that they have made a lot less consoles than they wanted to make
Funny though how now all three console companies are focusing on active users as the biggest metric for success.
In some places like in SouthEast Asia, X-box simply does not have coverage and support like sony does, so PS basically own the market there
OGs remember PS2
Ps1*
Not upgrading to the series x until Halo Infinite comes out. Next gen is overrated right now
Based on the problems I have seen and heard I feel the console should have waited a few months before release.
The PS5 isn’t losing Sony money. It’s giving them more money than they’ve ever had before.
The biggest reason for PS5 failure: lack of backwards compatibility. The PS2 still remains the highest-grossing console of all-time with the highest-selling games of all time. Had Sony added a legacy emulator that enabled the ability to allow original PS1, 2, 3 and 4 games and discs to run on the 5, it would've been much more successful instead of being the typical Sony laughingstock.
Apparently, 10-15% of stock has been resold on sites like eBay, etc
When will the technology needed for game streaming be on par with its demand?
1:17 😅🤦♂️ You can't be serious? You genuinely thought they sold that few consoles?
Can we say if ps5 costs equal to its manufacturing price........ Sony would have lost this console war.
Just like PS3era
They shouldn't sell it at a loss for first year. And don't buy from scalpers.
2 million PS5 sold to the scalpers...
Funny how people seem to forget Sony never released sales numbers for the ps3.
Wtf 😂😂😂
Yes, there are a massive number of PS5 sales. But how much of them is actually currently being used by consumers and not sold to a scalper who is trying to gain a profit for it? Those are the numbers I'd like to see.
You guys made a point... I would have spent lots of money on game sales and bought a bunch of DLC's if I actually got my hands on either the Series X or the PS5..😑😑😑😑😑still waiting for restocks!!
My dad the ps5 and boy its huge than I anticipated it to be, and thats the fact that I looked up the damn thing on RUclips video... also the when getting it you have to do a software update. My uncle was frustrated finding out it takes a good amount of space and had to be very selective on which games and their data he really wanted to port over.
This is the same for graphics cards
I mean the scalper situation is bad but to say more than 2.5 million units are sold to scalpers is way too much
At this point ima just get a gaming laptop or a pc
I remember when xbox fanboys said that the xbox series x will crush the PS5 because it's better and more powerful...
I can only see now that everyone is looking for a PS5...
@@mr.a5803 First, Microsoft didn't publish their numbers so the 3.5 million is just a forecast... Second, I'm not saying that the xbox is bad it's just all I see on youtube are videos about the ps5 not being able to buy
Xbox Series will Becomes Useless If you have A Pretty Decent Gaming PC.
3:14 Kiryu chan!!
I own both systems but i gravitate more in playing the Xbox series x…..ps5 lacks affordable games old and new (or lack of new games). Xbox game pass is the greatest!!
it's the razor and blade model, sell the one at lower cost and the repeat bit for more
what if sony is in charge of the reselling :0 to win money
Whenever scalpers kill their own greed by realizing few will actually pay $1000 for a insurance less console that could break the next day. I pity the person who actually pays a scalper. Hopefully scalpers give up and realize its pointless.
"selling you Spotify, selling you *ad plays"
The problem is the software sales which is the major profit for Sony.
FINALLY "THIS IS AUSTINS"
Sony better figure out how to get consoles to people who play games so they can sell games to them at a profit. The longer resellers hold ps5s hostage the less games (at least ps5 games) get sold. At this point the ps5 is a cooling looking white ps4 so most likely Sony set the game releases for when more people would be able to get a ps5 which won’t be until the middle of this year
But isn't a stadia subscription as long as any consoles lifespan just as expensive as a console?
£8.99*12(months)=£107.88(price per year)
£107.88*4(average console lifespan in years)=£431.52 (how much you'd spend on stadia) (not including how much extra it costs for the overpriced games)
If this is the case, what is its point?
Stadia can be really bad though, depending on your location and wifir
WiFi *
@@user-kp4ii5eu2w No, I'm saying stadia IS bad DUE to it being as expensive as buying original hardware
@@snerttt ohhhh
Two things:
Regardless of availability, the current "next-gen" lineup makes the ps5/xsx less exciting than the pro 4 and xbox one x.
Also, when a company sells something "at a loss", it's not like $100's of dollars. We're talking cents here people. The company isn't losing dollars per sale.
scalpers really hurt them cause its ps5's sitting in warehouses instead of people buying games
Beg to differ, playstation has sales often haha. But it's true that digital cost nothing compared to discs
I’d like to know how many of these Series and PS5 consoles are active online.
These companies shit the bed with scalpers and deserve to be shamed. Wouldn’t be surprised if 10-15% of shipments are sitting in boxes for resell.
PS4 games always have me asking; "Wouldn't I rather play this on PC with a mouse & keyboard?"
However Switch is almost always the opposite, me seeing a cool indie-game and saying to myself; "I'd rather be playing this on my Switch."
Really, I have no idea why I feel this at this point... it's like it took all the best parts of the 3DS, while expanding the library to include games I'd traditionally have to go to PC or PS4/xbox
The current technological stagnation has really helped Nintendo. Exclusivity isn't always a market deal, I remember days when the ONLY way to play a certain game was to get a specific console (ie: Halo) Halo *technically* was on PC, but it required good hardware which was almost always more expensive than buying a console. (not to mention that when tech was always upgrading, getting a solid PC would often only tide you over till the next big game) Now we've reached a point where graphics card upgrades are more for min/maxing than for getting access to a game. Good thing too with the crap launches for the 20XX and 30XX series we've seen.
TLDR: Nintendo made the perfect low-end console for the perfect window of time.
Stadia should be just like NVIDIA GeForce NOW that does not require u to buy ur already existing games again...
Why is there like TikTok ad music in the background XD
Because it's royalty free
@@ODDiSEE_ true
It's the only way to compete with the Soulja station.
Scalpers are hurting sony
i just got one yesterday with the ps5 store invite although im pretty tempted to sell it @ the price the resale guys sell theirs for.
what are you talking about rarely go on sale i buy all my games digitally on my ps4 because there are always sales
Surely you film in 4K?
You know, number of consoles sold doesnt tell the whole story just as much if not more than monthly active users. How many people buy the PS5 to just have it, or buy it to play Spiderman MM and then dont touch it for 6 months or a year? Commitment of users actually in front of the platform, using it and making purchases and most of all, subscribing is the big thing. My roommate went with the Series X just for Game Pass. Me bing on OC may have influenced him a little but he wanted a PS5 til he compared their sub services. Go figure.
Stadia is done. Over.
80 % are with resalers
Well heres the problem w digital console greedy isps like greedox aka cox or greedcast aka comcast capping you at 1.2tb or even worse living in remote parts of the us etc it kinda makes the non digital worth it
THIS IS! a nice DOOM shirt
I highly doubt they sold 4.5 million consoles. I don’t believe it
What else is new. These guys always lose money on consoles to please the market..that's why they don't mind bumping the prices of the games up and why Xbox is pushing gamepass so hard.
Is the overheating memory problem fixed?
His name isn't Austin. It's Malcolm. This is the first time on this site, but I'm going to say this isn't the first time that Austin has been compared to Malcolm aka Frankie Muniz. Sorry Austin! You have great content also.
The PS5 is not llosing money, Sony and the shareholders do.
Reason? OUT OF STOCK most people csnnot get it.
Biggest fiasco.
This console would actually be good if it was available.
It's been more than a year and PS5s are still impossible to find for retail price lmao
Screw the PS5. I'm holding on to my PS4 pro.
same here
When it comes to physical sales, Sony makes a tad bit more money then Microsoft because Sony manufacturers their own Blu Ray discs.
bruh how is microsoft and sony counting these sales if its only done by freakin bots
I think that this background music is a little bit to loud :(.
PS5 should just be all digital. I’ve only bought 2 discs since the PS4 came out. The rest I bought digital a few months later when they get a price cut. 🤷🏻♂️
I agree
Selling consoles at a loss but selling controllers for 60 bucks and taking 30% of every game sold. They cash in
and 4.5 billion sells are from scalpers making PS5 more harder to get...
I think the PS5 costs equal to produce to the Series X. You’re forgetting a very important detail, the DualSense and the proprietary parts they have to license.
Since the ps5 has already been sold more than the PS4 they should make the ps5 controller compatible with ps4
5 year life cycle? Meh
I purchased my PS4 at launch in 2013 and just stopped using it on 2nd Feb when I got my PS5 at launch in India. It served me well