PS5 Pro Is The Only Profitable Console, According To Sony
While Sony’s PlayStation 5 series has achieved record sales worldwide, the PS5 Pro is reportedly the only model the company has actually made a profit on. According to statements made by KeplerL2, a renowned hardware leaker, on NeoGAF, Sony’s standard PS5 model is still selling at a loss, with the more expensive Pro model being the only device keeping the company’s revenue up.
Why Is the PS5 Pro a Critical Profit for Sony?
According to KeplerL2, while the PS5 briefly turned a profit, it has now returned to a loss due to rising production costs for GDDR6 memory and the N7 processor. Unlike the Xbox, Sony has opted to maintain large chip sizes rather than switch to 6nm technology to reduce production costs, leading to a higher cost per piece of hardware.
While the standard PS5 is known to offer a 9.5% profit margin, it’s been emphasized that this rate is unsustainable. The PS5 Pro, on the other hand, offers both high hardware quality and greater profitability thanks to its $700 retail price. This pricing strategy stands out as the only factor that could offset the series’ overall losses.
While Sony hasn’t shared clear sales data for the PS5 Pro to date, leaks suggest that the device is one of the few models that covers its production costs. Therefore, Sony’s ability to maintain its profitability in the game console market with this model may largely depend on the PS5 Pro.
However, as all this information is still based on unofficial sources, it’s advisable to approach it with caution. Further statements from Sony on this matter may clarify the true picture of console sales. Nevertheless, one thing remains certain: the PS5 Pro has become a key player in the company’s revenue stream.
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