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Playstation 5 outperforms Playstation 4: Sony already earns money from console sale

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We’ve known for some time that the console manufacturers’ business model is particularly different, as when the console goes out on the market and is offered for sale to the consumer, for every unit sold the manufacturers lose money. I did not know? But it’s the truth.

The hardware components that are used are quite expensive, even mass-purchased as is done in these situations, however when the consoles reach the market, for each unit sold the manufacturers always lose money, since the method that companies use is the gain through games and, now, through shopping in their stores.

In this sense, as a rule, manufacturers usually take some time until the sale of each unit of the console starts to be, by itself, profitable, however, Sony managed to make this change faster than usual, as there is not yet any a year the console is on sale and, in the accounts report announced recently, it was revealed that the company already earns money for every console sold.

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Obviously, as always happens, manufacturers are never very clear when it comes to specific values, so we don’t know how much Sony already earns for each console sold, which is very likely a very negligible value, considering that the model it costs €499 in Europe. Incidentally, it is even mentioned that only in Playstation 5 with SSD is they already making money, and they continue to lose in the Digital model.

Let’s not be naive either, obviously that “in the cake” Sony, nor any other manufacturer, is losing. In fact, everyone earns thousands of euros in this gaming business and that turns out to be the manufacturers’ tactic.

Is that instead of Sony earning money with the consoles alone, it earns on the sale of games, as well as earns on the investment of players in the game, and that alone is already a great source of income for these manufacturers. By the way, just look at the same report to see that Sony’s gaming unit increased 2% in revenue.

It is true that profits have dropped, but this is perfectly acceptable, at a time when new consoles are released, with large investments and, allied to that, there is a decrease due to Covid-19 and the lack of necessary components that causes there is a huge shortage of stock on Playstation 5.

Fortunately, Sony has already guaranteed that it has established agreements that guarantee that the company will be able to put in stores the Playstation 5 units that were planned for 2021 and already for 2022 as well, which is excellent news.

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