Actually Nintendo only spoke about this quarter...Sony was a lot more optimistic on this.
I don't know what you're talking about. I saw Hulst at Best Buy over the weekend filling a basket up with ram sticks.But acccording to some PC users a company like Sony has the same leverage as an end user buying a ram module on amazon!
It's almost like people were telling you what a loss leader business model is. She is saying they can eat hardware costs because they sell software based on their installbase size.
It seems that with discounts is not profitable but without discounts it is.
It may have been but hardware prices have been so unstable who knows at any given time or when they make their contracts. This is beside the point though nobody was arguing that they make a profit on hardware. People were telling you and some other PC folks that the likes of Sony and Nintendo differ from Corsair, AIB GPU manufacturers, smartphones etc because they rely on increasing their installbase and eating hardware costs, to get software sales:
Things aren't that black and white. It was profitable for a bit in 2021 and then it stopped being profitable. This gen has been one hell of a rollercoaster, either because of components, because of covid, because of tarifs, now RAM, NVME's etc are increasing like hell, etc...it's been one thing after another. The fact this is hitting 100M this year is actually a huge surprise to me when you think about it all lol.
The release of the PS5 Pro with that price was also a reason why you haven't seen more price increases for PS5 while others have increased theirs last year. What they make from those units might actually be enough to offset the loss they have with the slim model.
Bet their stock is down 30% in 2 months since the RAM crisis because of platform warriors lmao
Yes they did and dropped it in other quarters to make higher future quarter profits. All this isn't relevant though is it. Nobody said there are no price changes in hardware just that the likes of Nintendo and Sony are cushioned from this vs PC component manufacturers because of their loss leader business model.
It was at that point.
The only people saying that were deranged fanboys here. We were exiting the mining boom when COVID arrived and since then we're in this strange world of ever increasing prices for old hardware. Too bad the guy with the references of being sold at loss was also a deranged fanboy (of Sony) and he's banned and I can't find his post XDD If PS5 was profitable it was very recently and as for the current results seems that the RAM crisis blowed those margins away.
Who said this? The strawman arguments are getting out of hand. You're correct that increased hardware prices threaten their business model because it relies on affordable hardware to have as high an installbase as possible. So what though? Nobody said rising RAM prices are good for business. This is mostly important for investors though.
Lets just assume that what you say is true. Why is this relevant? Are you immune to early access premiums on other platforms? Not really, they exist exactly the same on PC despite paying for the RAM price increases. Were they immune to subscription price hikes? No too. There are just far more hands in the cookiejar (your wallet) so they can't subsidise hardware.
That makes sense then if you're talking about a stock market perspective. The RAM price increases are not a good thing for them especially in the summer when they normally have to fight harder for software sales. From the perspective of the customer though this is only good news regarding no immediate price hikes due to the RAM crisis.
www.extremetech.com
So pretty much what anyone with a lick of sense expected anyway. They will eat the rising costs for hardware and will try to make up for it by selling more software/services.
They cannot increase the PS5 price any further without tanking the sales. The console is too expensive as is.
Interesting, maybe a increase in ps plus price? And more port to pc or other consoles??
How is it not relevant? It's not the early access thing, it's the more than probably PS Plus sub price hike that's happening this year.
TVs and Smartphones are a completely different story because TVs are sold to make a profit with the hardware itself. A console doesn't need to. In fact consoles have been sold at a lost for most of their existance.
It isn't relevant to my post, because nobody said the RAM crisis is good for business/profits. So who was saying falling stock price is due to warriors and why are you laughing about that? I just said that the customer is affected by rising hardware prices less on consoles because installbase is important in the loss leader model and they can stabilise hardware cost more to try to ride out instability.
You don't have to recover it especially if it means projected software sales decline due to your installbase projections falling short. They can have lower margin quarters and carry on but they're saying they won't have those because software revenue is likely to increase, especially with big games like GTA6. They reduced the PS5 price in December to $399 while this RAM crisis was happening keep that in mind as to how important installbase is for them. They may hike hardware prices too but I'm just saying consoles are affected less by it.
The tech companies certainly haven't done anybody any favours by buying up all the RAM but it's not doom and gloom of massive price hikes happening on consoles, at least not yet, and hopefully not in the future.
