JB Hi Fi and the likes of EB Games are set to benefit from the launch of the new super expensive PlayStation 5 Pro which is set to sell in Australia for over $1,200 with analysts claiming that Sony are trying to “Skim” more profits from gamers a move that benefits retailers.
According to insiders Sony is betting on Playstation fans upgrading to the new processor console, despite inflation pressures, with gaming retailers reaping the benefit of better margins.
The Japanese company is also betting on the device being a key seller running into the peak buying period after it goes on sale on the 7th of November in Australia.
The releases will come just weeks after the latest version of Microsoft’s next gen console is released.
The new Xbox Series X is set to be 18% cheaper than the Sony Playstation console.
According to Bloomberg analysts were divided on whether the pricing would spur sales for Sony, which is trying to expand its entertainment business with original, high-quality content spanning games, anime and film.
“This is about Sony skimming the absolute top end of the market, targeting hardcore PlayStation users only,” industry analyst Serkan Toto said. “It’s not a mass-market device. It seems the entire gaming world is puzzled about Sony’s pricing strategy.”
The pricing decision follows a series of price hikes in Japan, which experts viewed as a response to the growing cost of premium components others have their doubts and are accusing Sony of chasing profits.
The new, high-end console will allow PlayStation 5 games to be played at higher resolutions and faster framerates without the need to toggle between different modes, Mark Cerny, lead architect of the console, said in a video presentation. He said the PlayStation 5 Pro will offer 45% faster rendering than the standard PlayStation 5.
“The pricing seems extremely challenging, since there has never been a game console whose successor model was substantially more expensive than the original,” Citi analyst Kota Ezawa wrote.
“We surmise that the components responsible for the improved performance of the PS5 Pro are not all that much more expensive than the components in the original PS5, and thus we expect the higher price of the PS5 Pro to boost the gross margin.”
Sony’s PlayStation 5 has lagged in sales despite generating more than 59 million units since its release in 2020.
The new console lagged slightly behind its predecessor, the PlayStation 4.
The increased cost may limit its audience, in part because it moves the machine closer to the cost of a full gaming PC, perennially the biggest rival to standalone game consoles.
In a blog post, the company said that the new console will improve the performance of older titles and that “several games will be patched with free software updates for gamers to take advantage of PS5 Pro’s features” including Hogwarts Legacy, Final Fantasy VII Rebirth and Spider-Man 2.
“Simply put, it’s the most powerful console we’ve ever built,” Cerny said.
