As a long-time gaming enthusiast and avid collector of all things PlayStation, I can’t help but feel a mix of excitement and skepticism when it comes to the announcement of the PlayStation 5 Pro. On one hand, I’m thrilled at the prospect of playing games with even more impressive graphics and faster loading times. But on the other, I can’t help but wonder if this new system is aimed squarely at the wallets of those who have a little too much disposable income.
In a significant turn of events, Sony officially revealed the PlayStation 5 Pro, following months of anticipation and speculation. This disc-less system boasts enhanced capabilities compared to the standard PS5 and showcases impressive technical specifications. However, the online response primarily revolved around its price point: $700 USD. Leaving many perplexed, the question echoed: “Who is this intended for?
In essence, Mat Piscatella from Circana believes the console in question caters to ardent PlayStation fans who are less concerned about cost. He explained to TopMob that this specific audience finds the price point relatively insignificant, and he views the potential market for the PS5 Pro as a small fraction of the overall PlayStation fanbase.
Individuals keen on acquiring a PS5 Pro are likely those who crave having the most advanced PlayStation hardware available. Just as we all know someone who consistently upgrades to the latest iPhone, it’s no surprise that some were willing to spend over $1000 for a standard PS5 model when it launched in 2020, even through third-party vendors, given the scarcity of the system. (Piscatella’s observation)
As reported by Circana’s Checkout service, the PlayStation 5 is drawing a larger proportion of high-income households as purchasers compared to other console platforms in the United States. Specifically, Piscatella stated that during the three months ending July 2024, 49% of PS5 hardware buyers in the U.S. had annual household incomes exceeding $100,000, which is higher than the 43% for Xbox Series buyers and 40% for Nintendo Switch buyers.
Piscatella acknowledged that the suggested retail price of PS5 Pro ($700, not including taxes and additional costs such as a $80 drive for discs) might be considered “costly.” However, he reiterated that this product is not primarily designed for the typical PlayStation user.
The analyst wasn’t certain about the exact quantity of PS5 Pro units that would be sold initially, as it would be influenced by the amount of stock available. However, Piscatella expressed his opinion that the PS5 Pro could account for 15% to 20% of all PS5 consoles sold during the first two months following launch. He added that this percentage is expected to decrease in the subsequent months.
Reflecting on the PS4 Pro, Piscatella stated that approximately 13% of the total PS4 units ever sold were PS4 Pro consoles, and they accounted for roughly 15% of the total revenue generated by all PS4 sales.
As a dedicated gaming enthusiast, I predict that the PlayStation 5 Pro will conclude its generation by accounting for approximately 9-15% of all PlayStation 5 consoles ever produced. Given its premium pricing, it’s reasonable to assume that this figure could be slightly higher when considering the revenue generated.
700 dollars is indeed a significant amount, and it’s clear that this has sparked varied responses online regarding its cost. However, Piscatella explained that the current state of the video game market suggests that consumers are willing to pay higher prices for certain products.
In various aspects, the gaming market is becoming more diverse. Some games come with expensive Collector’s Editions priced at around $249, while others provide early access for a few days if you’re willing to pay over $99.99 for that game. Top-tier controllers and headsets also carry higher prices… And the list doesn’t stop there, he noted.
In the past, there was just one type of game, controller, or console available. However, those days have passed. Companies are now aiming to make as much money as possible from consumers who are sensitive about prices as well as those who don’t mind spending more. This shift has been challenging for many gamers, but it seems this trend is here to stay and will continue at its pace.
According to Piscatella’s remarks, they align significantly with what Ampere Analysis’ Piers Harding-Rolls stated in his recent open letter. He expressed that the anticipated PS5 Pro is primarily targeting the “enthusiast” market, as well as individuals who have yet to purchase a PS5 and wish to acquire the most advanced model available.
Similarly to Harding-Rolls, he acknowledges the discussions about the high cost of the anticipated PS5 Pro, which surpasses the price difference between the initial launch prices of the PS4 and its upgraded version, the PS4 Pro, back in 2016.
Harding-Rolls stated that the cost of the PS5 Pro aligns with Sony’s revised strategy to safeguard their profit margins, considering overall inflation in the supply chain and a scarcity of direct competition for its mid-cycle upgrade compared to the previous generation (where Microsoft was gearing up for the Xbox One X). The absence of rival products makes it simpler for Sony to opt for a higher price point to maintain its current profits. For the majority of potential PS5 buyers, the standard edition will likely offer the best balance between value and cost.
Harding-Rolls discussed his anticipation that the release of Grand Theft Auto VI in 2025 will spark a surge of updates, as some players are already considering purchasing the PS5 Pro to enjoy the much-awaited game from Rockstar. Moreover, the analyst has predicted that around 1.3 million units of the PS5 Pro could be sold during its launch period, which is lower than the 1.7 million PS4 Pro consoles that were sold at their initial release in 2016.
According to Harding-Rolls’ predictions, by the year 2029, the PS5 Pro might reach sales of approximately 13 million units. This would place it on par with the Wii U, a console that sold around the same number during its entire lifespan.
Alongside unveiling the anticipated $700 PS5 Pro model, Sony has also increased the cost of its DualSense controllers by a modest $5 this week.
In the course of events, it was announced that the first quarter of fiscal year 2024 (April 1 to June 30) saw a 27% decrease in PS5 hardware sales for Sony compared to the same period the previous year. Typically, console prices decline as time passes due to reduced costs of components. However, this trend has been disrupted by the pandemic and other factors, causing PS5 console prices to rise in various regions such as Japan, but not in the United States. Sony has attributed these price increases to global economic conditions.
Among the major console manufacturers, it is only Nintendo that has maintained its pricing consistent throughout this generation, while both Microsoft (with Xbox) and others have increased their costs for Xbox and Game Pass subscriptions.
To learn about the upcoming PS5 Pro and its compatible games, don’t forget to explore TopMob’s detailed overview. Mark your calendars as the PS5 Pro is set to debut on November 7, and pre-orders will be available starting September 26.
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2024-09-12 19:39