PlayStation 5 Price Increase Might Be Coming Soon If Nintendo’s OLED Switch Sells Well
According to a novel report from Bloomberg, Sony is eagerly awaiting the release of the OLED Nintendo Switch as its (potential) success might give this venerable giant an excuse to increase the price of the PlayStation 5. And, frankly, it’d be hard to argue against it. If Nintendo can put in a better screen, double the storage, and create a more robust kickstand — upgrades that cost just $10 more to produce per unit — why shouldn’t Sony sell its (endlessly more powerful) gaming behemoth at a higher price?
The PlayStation 5 (and Xbox Series S/X, for that matter) are in a league of their own in terms of power and potential and are currently manufactured and sold at a loss. Sony and Microsoft have been selling their consoles and losing out on revenue in hopes to one day recoup their losses through services and digital goods. It’s a good approach, no doubt, but they must feel at least somewhat bamboozled for opting to sell their products for “cheap;” Nintendo, on the other hand, has been playing a completely different game and has found a lot more success (and, by proxy, profit).
The PlayStation 5 Digital Edition, for instance, has the same internals as a regular PS5 minus the disc drive and is only $40 more expensive than an OLED Switch. Perplexing, no doubt, and Sony know it too. That’s why they’re “closely monitoring the market response” to Nintendo’s latest product release.
A Change Might Be On the Horizon
Console manufacturers are currently well aware that there’s way too much demand and not enough supply to sate it. Selling their products at a higher price, therefore, makes a lot of sense. Had Sony priced the PlayStation 5 at $599, it would’ve still been an insanely good deal given the amount of horsepower that’s packed within its enclosure. It wouldn’t be as alluring a price tag as the tried-and-true $499, but the console would still sell like hot cakes. There’s no doubt about it.
Companies are always on the lookout to increase their profit margins, but this might be one of the few instances in which a price hike would be more than justified. We’re probably talking about $50 to $100 at most which, in all fairness, isn’t that big of an increase.
What’ll happen remains to be seen, but it’s hard not to be intrigued by this whole thing. It seems that the release of the OLED Switch will affect the market in more ways than we ever could have imagined!