Michael Pachter: Sony Blew it With the PS5 Digital Edition - NewsWilliam D'Angelo , posted on 02 October 2020 / 5,615 Views
Sony is releasing two versions of its next-generation console, the PlayStation 5. The $499 version includes a digital drive, while the $399 version is an all-digital console.
Wedbush Securities analyst Michael Pachter speaking in an interview with GamingBolt discussed the two PlayStation 5 consoles. Pachter says Sony is breaking even on the standard PS5, while they are losing around $40 for each PS5 Digital Edition, due to the Digital Edition's lack of a disc drive not saving Sony $100 per console.
"I think Sony really blew it with that, because as far as we can tell, the cost of making a PlayStation 5 is $450, so they are breaking even on the $500 version, but losing $40 or so on the digital version," said Pachter.
"A disc drive isn’t worth that much. So they’re losing $40, but they gain $6 more per digital game than they would gain otherwise. So you would have to buy a lot of games to cover up the loss, and I just think it’s unlikely many will buy that many games."
Pachter says Sony "blew it" with the Digital Edition and he thinks Sony will sell and make fewer of the lower-priced console.
"I actually don’t think many consumers will want to save the money, I think most would rather have the disc drive on hand so they have the option to take their game to their friend’s house or trade it in or whatever,” Pachter added. "So I think they blew it with the Digital Edition, but it’s hard to tell early numbers, because it’s all sold out anyway, and we don’t know how many of each they made. But I think over the long run, they’ll sell and make fewer digital editions."
Sony hasn't stated which console they are selling more of at launch, however, some retailers have said they are selling more of the PS5 with a disc drive than the Digital Edition.
The PlayStation 5 and PlayStation 5 Digital Edition will launch on November 12 in North America, Japan, Australia, and New Zealand, and November 19 in Europe and the rest of the world.
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel dedicated to gaming Let's Plays and tutorials. You can contact the author at email@example.com or on Twitter @TrunksWD.