Perhaps the biggest talking point from Sony’s PS5 Pro reveal is its price. At $700 and without a disc drive or stand, the PS5 Pro has sparked vociferous debate online about whether Sony is justified in setting such a high price for the mid-gen upgrade. IGN readers have already had their say on the PS5 Pro’s $700 cost, but what’s enabled Sony to be so bold with its pricing?
According to one prominent analyst, there are a number of factors that have contributed to Sony going for $700 (and, relatively, even higher in Europe and Japan). Piers Harding-Rolls, games industry analyst at Ampere, said the PS5 Pro pricing reflects Sony’s adjusted strategy to protect its margin (that is, it is unwilling to sell consoles at a loss), supply chain inflation, and, crucially, “a lack of direct competitor to its mid-cycle upgrade compared to last generation (where Microsoft was preparing the Xbox One X).”
“The lack of competition means it is an easier decision for Sony to run with a higher price point to protect its existing margins,” Harding-Rolls added. “For most prospective PS5 consumers, the standard edition will represent the value sweet spot.”
It’s worth digging into this point. During the last generation, Microsoft took on Sony’s dominant PlayStation 4 with a number of Xbox One variants, including the more powerful Xbox One X. Back in 2017, when the Xbox One X launched and with the PS4 Pro already a year old, Microsoft sold it to consumers as “the world’s most powerful console,” with 40 percent more power than any other console on the market at the time. “Xbox One X is where console gamers can play the best versions of games,” Microsoft said.
This time around, with the Xbox Series X and S floundering, the PS5 outselling its rival significantly across most markets, and with no mid-gen upgrade from Microsoft in sight, Sony is in a different position. When it comes to the so-called console war, PlayStation is miles ahead of Xbox, and the PS5 Pro will launch unchallenged.
So, as Harding-Rolls notes, there is no pressure on Sony to undercut its competition because there is no competition. “The price point of the PS5 Pro will inevitably cause a lot of commentary,” Harding-Rolls said.
“The price point differential between the PS5 and PS5 Pro is between 40-50%, which is significantly more than the differential between the PS4 and PS4 Pro at launch. In the US, the PS4 Pro launched at $399 and the slim PS4 was $299 at the time, a 33% differential. Additionally, the slim PS4 had a retail price of $299 having dropped from the original PS4 launch price of $399.”
The point was echoed by GamesIndustry.biz chief Chris Dring: “PS5 Pro targets a very specific audience,” he said. “I don’t expect it to move the needle for the console space this year (although there will be some PS4 users waiting for the Pro model to upgrade). The price is high, but the lack of competition means Sony can protect its sales margin.”
So, what does this price point mean for potential PS5 Pro sales? Ampere forecasts around 1.3 million PS5 Pro sales in the 2024 launch window, compared to 1.7m PS4 Pros that were sold at launch in 2016. “We expect the price point to soften demand with some consumers, but for PlayStation enthusiasts the pricing is less of a consideration,” Harding-Rolls said.
The analyst expects the PS5 Pro to sell around 13 million units by 2029, which, if true, would be similar to the PS4 Pro. That console is estimated to have sold around 12 percent of total PS4 sales.
The PS5 Pro launches November 7, 2024, with up to 50 PS5 Pro Enhanced games. Here’s a list of all the PS5 Pro Enhanced games confirmed so far.
Wesley is the UK News Editor for IGN. Find him on Twitter at @wyp100. You can reach Wesley at wesley_yinpoole@ign.com or confidentially at wyp100@proton.me.