The PlayStation 5 and its digital edition were always going to be priced at $499 and $399, respectively. This comes from a new interview with Jim Ryan, the CEO of Sony Interactive Entertainment, who offered his perspective into the logic behind the PS5 pricing model.
When Sony revealed the pricing of its next-gen consoles, many were surprised at how closely aligned its prices were to those of the next-gen Xbox consoles. Around that time, rumors suggested that Sony had lowered its price behind-the-scenes at the last minute. This speculation was fueled, in part, by the continued economic impact of the COVID-19 pandemic. Although analysts had expressed concerns about COVID-19 harming next-gen sales as early as April, few had anticipated how long stay-at-home orders and quarantine measures would persist in places like the United States.
In the latest issue of Edge Magazine, Ryan said pricing of its new consoles had already been finalized by the time the pandemic hit. He notes that the price point of the PS5 Digital Edition matches the price of the PlayStation 4 at launch, and given the success of the PS4 it seemed right to offer the same price now. Ryan's framing sidesteps the fact that the PlayStation 4 shipped with a disc drive while the PS5 Digital Edition does not, but it is good to know that Sony did not decide to take a big loss on its new consoles at the last minute.
Despite competitive pricing, Sony's latest consoles may not be as financially accessible as Microsoft's offerings. The $299 pricing of the Xbox Series S is low for a console of its caliber, and the Xbox Game Pass subscription model allows owners to access dozens of major titles for a flat monthly rate. This is to say nothing of the Xbox All Access financing plans that Microsoft offers, which allow gamers to buy an Xbox Series X through monthly $35 payments.
Even taking the PlayStation on its own terms, it's worth noting that a low price point may be outweighed by games costing more. PS5 titles like Demon's Souls and Godfall cost $70, upping the conventional $60 price for new games. Although the PlayStation Plus program offers free access to some PS4 games, it is not intended as a replacement for buying new games.
Sony is confident in its approach, and has made clear that it is fine not releasing a PlayStation counterpart to the Xbox Game Pass. The Xbox Series S may ultimately cause difficulties later in the generation, given the technical sacrifices made to achieve its low price point. At the very least, given both Sony and Microsoft have seen early success with their new consoles, Sony's confidence seems warranted.
The PlayStation 5 and PlayStation 5 Digital Edition are now available for $499 and $399, respectively.
Source: Wccftech