Sony is now reportedly making more money off sales of its PS5 than it takes to build them, according to Bloomberg. That means Sony is no longer selling the PS5 console at a loss. So it can continue to crank out more and more PS5 units and make profit for the rest of its lifecycle. Assuming cost of manufacturing is able to stay the same throughout that time.
The PS5 isn’t even a year old yet, which is what makes this all the more impressive. Though according to The Verge, Sony had a quicker turnaround with the PS4. The process to go from selling it at a loss to making profit off the PS4 hardware sales spanned about six months. Compared to the PS5 which has taken almost nine months. Still, the PS5 is now a profitable product from Sony in terms of hardware sales.
Sony is only making money off the PS5 disc model
Based on Bloomberg’s report, Sony is only able to make money off PS5 hardware sales with the $499 disc model. Although the losses from sales on the digital model are still there, Sony says it can make that money back in other ways.
The company’s plan includes offsetting the hardware sales of the PS5 digital model with sales of the PS4 hardware, as well as peripherals for both the PS4 and the PS5.
Sony may be better equipped to meet demand soon
As part of Sony’s most recent earnings call, Sony Chief Financial Officer Hiroki Totoki noted that the company was able to secure more chips used in the manufacturing of the PS5. Since launch in November of 2019, Sony has struggled to meet the demand of the PS5 both in the disc and digital models.
Through a mix of component shortages that limited manufacturing numbers and bot-empowered scalpers, getting your hands on a PS5 has not always been easy. In fact for many consumers it was (and still is) quite a challenge.
But with Sony now getting additional chips the shortage of PS5 consoles may be on its way out. For both Sony and the consumer, that’s a good thing. The only people this won’t be good for are resellers.