According to a recent earnings report, Sony’s profits dropped by 33% year-over-year. Despite this figure, the organization reported that revenues increased by 2%.
“This is due to a few factors, fewer PS4 sales in the new-gen, fewer third-party game sales, and sales of digital content,” writes Forbes‘ Paul Tassi. “The fact that pandemic dramatically increased spending in the gaming sector last year. But a main contributing factor is that Sony is selling millions and millions of $400 and $500 PS5s ‘lower than manufacturing cost’ in order to establish a ‘strategic price point.’”
Sony did report that PS5’s with disc ports are making money for the company. However, digital versions of the PlayStation 5 are currently being sold at a loss.
(All information was provided by Forbes)