• Welcome to TechPowerUp Forums, Guest! Please check out our forum guidelines for info related to our community.

Sony Confirms It's Selling PS5 Consoles Below Manufacturing Cost, Ships 4.5 Million Units

Raevenlord

News Editor
Joined
Aug 12, 2016
Messages
3,755 (1.35/day)
Location
Portugal
System Name The Ryzening
Processor AMD Ryzen 9 5900X
Motherboard MSI X570 MAG TOMAHAWK
Cooling Lian Li Galahad 360mm AIO
Memory 32 GB G.Skill Trident Z F4-3733 (4x 8 GB)
Video Card(s) Gigabyte RTX 3070 Ti
Storage Boot: Transcend MTE220S 2TB, Kintson A2000 1TB, Seagate Firewolf Pro 14 TB
Display(s) Acer Nitro VG270UP (1440p 144 Hz IPS)
Case Lian Li O11DX Dynamic White
Audio Device(s) iFi Audio Zen DAC
Power Supply Seasonic Focus+ 750 W
Mouse Cooler Master Masterkeys Lite L
Keyboard Cooler Master Masterkeys Lite L
Software Windows 10 x64
Sony has confirmed that it is paying some of the upfront cost in acquiring their latest PS5 games console by pricing it below manufacturing cost. Consoles being priced as such isn't a new move in itself; manufacturers have often sold their consoles at a loss so as to keep consoles attractive to buyers and thus increase their install base. This, in turn, equates with higher sales of software - which is often where Sony or Microsoft recoup their margin loss on hardware.

Sony has also confirmed that its PS5 console has sold around 4.5 million units since launch, putting it in a similar footing with the PS4 in the corresponding period, despite the higher retail price at launch. The sales figure also puts Sony's PlayStation division results for 2020's Q3 FY as their historical best ever since the company started selling games consoles. Revenue increased 40 percent to 883.2 billion yen ($8.4 billion), partly driven by PS5 sales, whilst operating profit increased by 50 percent to 80.2 billion yen ($763.3 million) due to higher software and services sales (such as PlayStation Plus subscriptions), and better margins on PS4 hardware, which still shipped around 1.4 million units.



View at TechPowerUp Main Site
 
Joined
Nov 19, 2009
Messages
35 (0.01/day)
Location
My house
Ummm... thats sounds like it would fall under anti-dumping law in EU.

 
Joined
Mar 20, 2008
Messages
885 (0.15/day)
System Name Raptor
Processor Core i7 13700K
Motherboard MSI Z690 Tomahawk WiFi
Cooling ArcticFreezer 420
Memory Corsair VENGEANCE® 32GB (2x16GB) DDR5 5600MHz C36
Video Card(s) Palit GameRock 3080Ti OC
Storage M.2 Addlink S70 Lite , Samsung SSD 980 PRO 2TB, SanDisk Ultra II 480GB, 1TB seagate
Display(s) ASUS TUF VG27AQL1A
Case LANCOOL III
Audio Device(s) Realtek® ALC4080 Codec + Philips SHP9500
Power Supply Seasonic GX-1000
Mouse G502 Proteus Spectrum
Keyboard ASUS CERBERUS
Software Windows 10
INB4 "Sorry we have to rise the prices just like every other tech company these days" ...
 
Joined
Nov 8, 2020
Messages
474 (0.38/day)
System Name Dusty
Processor 5900x
Motherboard MSI B550 Tomahawk
Cooling Noctua NH-D15
Memory Corsair Vengence LPX 32GB
Video Card(s) MSI RTX 3070 Gaming X
Storage yes
Case Fractal Design Define R6
Power Supply EVGA SuperNOVA 750w
VR HMD Oculus CV1
Ummm... thats sounds like it would fall under anti-dumping law in EU.


What? Thats not even remotely similar. Take a while to actually read through it first because that is completely unrelated.
 
Joined
Jan 28, 2012
Messages
467 (0.11/day)
Location
Lithuania
Processor Intel Core i5 4670K @ 4.8 GHz
Motherboard AsRock Z87 Extreme 4
Cooling Lepa NeoIllusion RGB CPU cooler
Memory 2*4GB Patriot G2 Series RAM
Video Card(s) MSI Radeon R9 380 4GB
Storage Transcend SSD 740 256GB + WD Caviar Blue 1TB
Display(s) Samsung SA 300 24" Full HD
Case NZXT Phantom 530 + Bitfenix Recon fan controller
Audio Device(s) Creative SB0770 X-Fi Xtreme Gamer
Power Supply PC Power and Cooling Silencer MkIII 750W 80+ Gold
Mouse Logitech G502
Keyboard Steelseries Apex RAW
Benchmark Scores IT WORKS
Ummm... thats sounds like it would fall under anti-dumping law in EU.


They are getting money back while selling software and subscriptions. So in general that is fair :)
 
Joined
May 18, 2009
Messages
2,733 (0.50/day)
Location
MN
System Name Personal / HTPC
Processor Ryzen 5900x / i5-4460
Motherboard Asrock x570 Phantom Gaming 4 /ASRock Z87 Extreme4
Cooling Corsair H100i / stock HSF
Memory 32GB DDR4 3200 / 8GB DDR3 1600
Video Card(s) EVGA XC3 Ultra RTX 3080Ti / EVGA RTX 3060 XC
Storage 500GB Samsung Pro 970, 250 GB SSD, 1TB & 500GB Western Digital / 2x 4TB & 1x 8TB WD Red
Display(s) Dell - S3220DGF 32" LED Curved QHD FreeSync Monitor / 50" LCD TV
Case CoolerMaster HAF XB Evo / CM HAF XB Evo
Power Supply 850W SeaSonic X Series / 750W SeaSonic X Series
Mouse Logitech G502
Keyboard Black Microsoft Natural Elite Keyboard
Software Windows 10 Pro 64 / Windows 10 Home 64
I haven't followed consoles for a while, but I always thought this was kind of the norm. Sell the consoles at cost or even at a loss while recouping revenue in other aspects such as subscriptions, licensing fees, digital sales and so on.
 
Joined
Feb 23, 2019
Messages
5,581 (3.00/day)
Location
Poland
Processor Ryzen 7 5800X3D
Motherboard Gigabyte X570 Aorus Elite
Cooling Thermalright Phantom Spirit 120 SE
Memory 2x16 GB Crucial Ballistix 3600 CL16 Rev E @ 3800 CL16
Video Card(s) RTX3080 Ti FE
Storage SX8200 Pro 1 TB, Plextor M6Pro 256 GB, WD Blue 2TB
Display(s) LG 34GN850P-B
Case SilverStone Primera PM01 RGB
Audio Device(s) SoundBlaster G6 | Fidelio X2 | Sennheiser 6XX
Power Supply SeaSonic Focus Plus Gold 750W
Mouse Endgame Gear XM1R
Keyboard Wooting Two HE
INB4 "Sorry we have to rise the prices just like every other tech company these days" ...
Don't worry about that. Now that they all digital version of their console they don't have to worry about pricing. They've got the PS Plus, they've got the only digital distribution service - they're set.

MS is probably doing the same with Series S and X.
 

FreedomEclipse

~Technological Technocrat~
Joined
Apr 20, 2007
Messages
23,311 (3.77/day)
Location
London,UK
System Name Codename: Icarus Mk.VI
Processor Intel 8600k@Stock -- pending tuning
Motherboard Asus ROG Strixx Z370-F
Cooling CPU: BeQuiet! Dark Rock Pro 4 {1xCorsair ML120 Pro|5xML140 Pro}
Memory 32GB XPG Gammix D10 {2x16GB}
Video Card(s) ASUS Dual Radeon™ RX 6700 XT OC Edition
Storage Samsung 970 Evo 512GB SSD (Boot)|WD SN770 (Gaming)|2x 3TB Toshiba DT01ACA300|2x 2TB Crucial BX500
Display(s) LG GP850-B
Case Corsair 760T (White)
Audio Device(s) Yamaha RX-V573|Speakers: JBL Control One|Auna 300-CN|Wharfedale Diamond SW150
Power Supply Corsair AX760
Mouse Logitech G900
Keyboard Duckyshine Dead LED(s) III
Software Windows 10 Pro
Benchmark Scores (ノಠ益ಠ)ノ彡┻━┻
Ummm... thats sounds like it would fall under anti-dumping law in EU.


You say this but in short, thats also how the market for printers work. HP, Samsung, Epson, Brother etc etc all sell their printers at a loss because they make up their profits by the selling of ink/toner cartridges & other accessories/consumables.
 
Joined
Apr 30, 2011
Messages
2,648 (0.56/day)
Location
Greece
Processor AMD Ryzen 5 5600@80W
Motherboard MSI B550 Tomahawk
Cooling ZALMAN CNPS9X OPTIMA
Memory 2*8GB PATRIOT PVS416G400C9K@3733MT_C16
Video Card(s) Sapphire Radeon RX 6750 XT Pulse 12GB
Storage Sandisk SSD 128GB, Kingston A2000 NVMe 1TB, Samsung F1 1TB, WD Black 10TB
Display(s) AOC 27G2U/BK IPS 144Hz
Case SHARKOON M25-W 7.1 BLACK
Audio Device(s) Realtek 7.1 onboard
Power Supply Seasonic Core GC 500W
Mouse Sharkoon SHARK Force Black
Keyboard Trust GXT280
Software Win 7 Ultimate 64bit/Win 10 pro 64bit/Manjaro Linux
It was a sure thing that in this price PS5 was sold below cost. It should have a price of at least $600-650 to get them some money for the HW. But they gain much more in the long term if the PS5 owners base gets games, accessories and subscriptions, so it is a smart business move played again in the past successfully.
 
Joined
Oct 18, 2019
Messages
392 (0.24/day)
Location
NYC, NY
I managed to get my PS5, and PS5 for my cousins.

But considering how many children woke up disappointed for Christmas, the "demand" is considerably lower now.
 

Attachments

  • PS5 scalped (2).jpg
    PS5 scalped (2).jpg
    54.3 KB · Views: 166
  • 20201226_154543473_iOS.jpg
    20201226_154543473_iOS.jpg
    1.5 MB · Views: 118
Joined
May 28, 2020
Messages
752 (0.54/day)
System Name Main PC
Processor AMD Ryzen 9 5950X
Motherboard ASUS X570 Crosshair VIII Hero (Wi-Fi)
Cooling EKWB X570 VIII Hero Monoblock, 2x XD5, Heatkiller IV SB block for chipset,Alphacool 3090 Strix block
Memory 4x16GB 3200-14-14-14-34 G.Skill Trident RGB (OC: 3600-14-14-14-28)
Video Card(s) ASUS RTX 3090 Strix OC
Storage 500GB+500GB SSD RAID0, Fusion IoDrive2 1.2TB, Huawei HSSD 2TB, 11TB on server used for steam
Display(s) Dell LG CX48 (custom res: 3840x1620@120Hz) + Acer XB271HU 2560x1440@144Hz
Case Corsair 1000D
Audio Device(s) Sennheiser HD599, Blue Yeti
Power Supply Corsair RM1000i
Mouse Logitech G502 Lightspeed
Keyboard Corsair Strafe RGB MK2
Software Windows 10 Pro 20H2
In other news, water is wet and the sky is blue.

Consoles are almost exclusively sold at a loss and the cost is recouped in games licensing, subscriptions and ads.
 
Joined
Feb 11, 2009
Messages
5,389 (0.98/day)
System Name Cyberline
Processor Intel Core i7 2600k -> 12600k
Motherboard Asus P8P67 LE Rev 3.0 -> Gigabyte Z690 Auros Elite DDR4
Cooling Tuniq Tower 120 -> Custom Watercoolingloop
Memory Corsair (4x2) 8gb 1600mhz -> Crucial (8x2) 16gb 3600mhz
Video Card(s) AMD RX480 -> ... nope still the same :'(
Storage Samsung 750 Evo 250gb SSD + WD 1tb x 2 + WD 2tb -> 2tb MVMe SSD
Display(s) Philips 32inch LPF5605H (television) -> Dell S3220DGF
Case antec 600 -> Thermaltake Tenor HTCP case
Audio Device(s) Focusrite 2i4 (USB)
Power Supply Seasonic 620watt 80+ Platinum
Mouse Elecom EX-G
Keyboard Rapoo V700
Software Windows 10 Pro 64bit
In other news, water is wet and the sky is blue.

Consoles are almost exclusively sold at a loss and the cost is recouped in games licensing, subscriptions and ads.

^this, Nintendo was the only company for a long time selling the console itself at a profit.
 
Joined
Jan 8, 2017
Messages
8,863 (3.36/day)
System Name Good enough
Processor AMD Ryzen R9 7900 - Alphacool Eisblock XPX Aurora Edge
Motherboard ASRock B650 Pro RS
Cooling 2x 360mm NexXxoS ST30 X-Flow, 1x 360mm NexXxoS ST30, 1x 240mm NexXxoS ST30
Memory 32GB - FURY Beast RGB 5600 Mhz
Video Card(s) Sapphire RX 7900 XT - Alphacool Eisblock Aurora
Storage 1x Kingston KC3000 1TB 1x Kingston A2000 1TB, 1x Samsung 850 EVO 250GB , 1x Samsung 860 EVO 500GB
Display(s) LG UltraGear 32GN650-B + 4K Samsung TV
Case Phanteks NV7
Power Supply GPS-750C
Consoles are almost exclusively sold at a loss and the cost is recouped in games licensing, subscriptions and ads.

Even if they are sold at a loss at their launch that doesn't last for long.
 
Joined
Oct 10, 2009
Messages
786 (0.15/day)
Location
Madrid, Spain
System Name Rectangulote
Processor Core I9-9900KF
Motherboard Asus TUF Z390M
Cooling Alphacool Eisbaer Aurora 280 + Eisblock RTX 3090 RE + 2 x 240 ST30
Memory 32 GB DDR4 3600mhz CL16 Crucial Ballistix
Video Card(s) KFA2 RTX 3090 SG
Storage WD Blue 3D 2TB + 2 x WD Black SN750 1TB
Display(s) 2 x Asus ROG Swift PG278QR / Samsung Q60R
Case Corsair 5000D Airflow
Audio Device(s) Evga Nu Audio + Sennheiser HD599SE + Trust GTX 258
Power Supply Corsair RMX850
Mouse Razer Naga Wireless Pro / Logitech MX Master
Keyboard Keychron K4 / Dierya DK61 Pro
Software Windows 11 Pro
That's 4.5 million chips that could've gone to desktop CPUs and GPUs. AMD fanboys are not their main target audience anymore.
What
 
Joined
Mar 8, 2013
Messages
60 (0.01/day)
Ummm... thats sounds like it would fall under anti-dumping law in EU.

Did... Did you even read the policy in your own link???

I will quote verbatim the very first paragraph in the website you linked (bold emphasis mine)

A non-EU company is 'dumping' if it exports a product to the EU at a price lower than the normal value of the product. The normal value is either product's price as sold on the home market of the non-EU company, or a price based on the cost of production and profit.

Sony is NOT 'dumping' this product. The retail price is more or less set at more or less the same amount across all the different markets that Sony sells these in (with some allowance for VAT, currency fluctuations etc... If they were really 'dumping' the product, they would set the RRP on their home market (say, Japanese domestic pricing) to say, 800EUR equivalent, and selling the console at 500EUR in the EU.
 
Joined
Oct 22, 2014
Messages
13,210 (3.83/day)
Location
Sunshine Coast
System Name Black Box
Processor Intel Xeon E3-1260L v5
Motherboard MSI E3 KRAIT Gaming v5
Cooling Tt tower + 120mm Tt fan
Memory G.Skill 16GB 3600 C18
Video Card(s) Asus GTX 970 Mini
Storage Kingston A2000 512Gb NVME
Display(s) AOC 24" Freesync 1m.s. 75Hz
Case Corsair 450D High Air Flow.
Audio Device(s) No need.
Power Supply FSP Aurum 650W
Mouse Yes
Keyboard Of course
Software W10 Pro 64 bit
But considering how many children woke up disappointed for Christmas, the "demand" is considerably lower now.
You mean over indulged brats woke up to a dose of reality, they can't always get what they want!
 
Joined
Jun 18, 2015
Messages
563 (0.18/day)
if only Sony was really manufacturing, Acutally the real losing side here is AMD !! (yeah they are definitely losing because they could've won too much more if they'd used their resources for PC or even mobile GPU&CPUs)
 
Last edited:
Joined
May 28, 2020
Messages
752 (0.54/day)
System Name Main PC
Processor AMD Ryzen 9 5950X
Motherboard ASUS X570 Crosshair VIII Hero (Wi-Fi)
Cooling EKWB X570 VIII Hero Monoblock, 2x XD5, Heatkiller IV SB block for chipset,Alphacool 3090 Strix block
Memory 4x16GB 3200-14-14-14-34 G.Skill Trident RGB (OC: 3600-14-14-14-28)
Video Card(s) ASUS RTX 3090 Strix OC
Storage 500GB+500GB SSD RAID0, Fusion IoDrive2 1.2TB, Huawei HSSD 2TB, 11TB on server used for steam
Display(s) Dell LG CX48 (custom res: 3840x1620@120Hz) + Acer XB271HU 2560x1440@144Hz
Case Corsair 1000D
Audio Device(s) Sennheiser HD599, Blue Yeti
Power Supply Corsair RM1000i
Mouse Logitech G502 Lightspeed
Keyboard Corsair Strafe RGB MK2
Software Windows 10 Pro 20H2
Joined
Mar 28, 2020
Messages
1,632 (1.12/day)
Ummm... thats sounds like it would fall under anti-dumping law in EU.

You sounded like you prefer to pay more for the consoles. I am sure Sony or Microsoft won't mind. :laugh:

if only Sony was really manufacturing, Acutally the real losing side here is AMD !! (yeah they are definitely losing because they could've won too much more if they'd used their resources for PC or even mobile GPU&CPUs)
Why so? Sony and MS are paying AMD the asking price while they themselves are sucking up the losses per unit sold. They may not make as much as selling their own CPU for example, but I am sure with such a high sales volume, they can still profit handsomely from it. Consider the fact that 4.5 million units of PS5 sold as reported here, and an estimated of 3.3 million XBSX sold for 2020. In other words, they have sold almost 8 million SOCs unchallenged since they pretty much cornered the high end console market.
 
Last edited:
Joined
Jan 5, 2006
Messages
17,693 (2.66/day)
System Name AlderLake / Laptop
Processor Intel i7 12700K P-Cores @ 5Ghz / Intel i3 7100U
Motherboard Gigabyte Z690 Aorus Master / HP 83A3 (U3E1)
Cooling Noctua NH-U12A 2 fans + Thermal Grizzly Kryonaut Extreme + 5 case fans / Fan
Memory 32GB DDR5 Corsair Dominator Platinum RGB 6000MHz CL36 / 8GB DDR4 HyperX CL13
Video Card(s) MSI RTX 2070 Super Gaming X Trio / Intel HD620
Storage Samsung 980 Pro 1TB + 970 Evo 500GB + 850 Pro 512GB + 860 Evo 1TB x2 / Samsung 256GB M.2 SSD
Display(s) 23.8" Dell S2417DG 165Hz G-Sync 1440p / 14" 1080p IPS Glossy
Case Be quiet! Silent Base 600 - Window / HP Pavilion
Audio Device(s) Panasonic SA-PMX94 / Realtek onboard + B&O speaker system / Harman Kardon Go + Play / Logitech G533
Power Supply Seasonic Focus Plus Gold 750W / Powerbrick
Mouse Logitech MX Anywhere 2 Laser wireless / Logitech M330 wireless
Keyboard RAPOO E9270P Black 5GHz wireless / HP backlit
Software Windows 11 / Windows 10
Benchmark Scores Cinebench R23 (Single Core) 1936 @ stock Cinebench R23 (Multi Core) 23006 @ stock
PS5 Scalper:

Capture.PNG
 
Top