Playstation 5: where do the digital edition of playstation 5 price advantages come from?
The digital edition of the Playstation 5 could not only be cheaper due to lower production costs, but also through higher profits when selling games. Allegedly, Sony earns significantly more from selling digital games than from selling Blu-rays.
With the Playstation 5, Sony follows the approach of Microsoft’s Xbox One S and, in addition to a normal version with a UHD Blu-ray drive, also launches a second variant without a drive, which can only obtain games via the Internet. Digital Foundry has taken a look at the known information and explains in a video how Sony could get a cheaper price if the drive was omitted.
More profit from the PS5 Digital Edition?
Sony has not yet announced a price for the Playstation 5 , and nothing is known about the difference between the versions with and without a drive. In any case, the company promises additional profit by splitting it into two models – otherwise all consoles with a drive would simply be produced.
The most obvious reason for the PS5 Digital Edition is lower production costs, because the drive can be saved completely. Digital Foundry sees only a minor effect here, because for Sony the drive should only make up around 20 US dollars – so you couldn’t pass any more on to customers. To appear significantly cheaper, the digital edition would have to be 50 euros cheaper than the normal version; So the question of financing arises.
The video speculates that the digital edition of Playstation 5 should only pay off in operation, because Sony does not sell physical games on these consoles. From a financial point of view, this has several advantages. First of all, the production costs for Blu-rays are saved, which are incurred with every physical game purchase. In addition, digitally purchased games cannot be resold, which means that Sony’s sales figures in the Digital Edition are no longer “damaged” by the used market.
The third and probably most important point for the digital edition is supposed to be the division between the game publisher and the platform operator – that is, Sony. According to Digital Foundry, Sony receives a little more money each time a game is sold digitally than when it is sold on a disc. For a game for $ 60, that’s supposed to be $ 8.
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If this information is correct, Sony would consequently make more money with the digital edition of Playstation 5 than with the normal version. The company could then ask for a lower price and possibly even happily pay for each console – because in retrospect that would make up for the sales profits. For the users, on the other hand, the digital edition brings more disadvantages than advantages, because it can be used to look for bargains neither on data carriers nor in the used market .
Source: Digital Foundry
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