Michael Pachter believes that, in the long run, they will sell fewer digital versions of the console. You think your price and strategy will not be profitable.
The launch of PS5 this November will have two models on the market: one with a disc reader and another without a disc reader called the PS5 Digital Edition. Market analyst Michael Pachter, in a meeting with GamingBolt, has stated that Sony is making a mistake with this model because, in the long term, it will lose money given the price it will have in stores, 399 euros in Spain and the rest of Europe .
“In the long run, they will sell and make fewer digital editions [of PS5]”
According to Pachter, Sony will lose money with the manufacture of each PS5 Digital Edition and will not be able to compensate it with the sale of digital games because, to do so, the amount of titles that each owner of the machine will have to buy is very high; above the estimates it holds in its forecast.
“I think Sony has really been wrong,” he asserts in his presentation. “As far as we know, the production cost of a PS5 is 450 euros; so that the version of 500 euros is in an equilibrium point, but losing about 40 euros in the digital version. A disc player is not worth that much. So they lose $ 40, but they earn $ 6 more for each digital game that they could get otherwise, ”he adds.
In this way, he goes on to say that “you would have to buy a lot of games to make up for that loss, and I just think that it is very unlikely that there are so many players who buy that many games.” In addition, he believes that for those 100 dollars / euros of difference, most will make the leap to standard PS5, with a disc reader, because “I don’t think that many would prefer to save that money, I think that most would prefer to have a disc reader and have thus the option of being able to take the games to their friends’ house, sell them… whatever ”, he adds; and ends: “I think in the long run, they will sell and make fewer digital editions [of PS5].”