The PlayStation price hike

There’s a phrase that seems to be appearing more and more often these days – at least in the increasingly left-wing social media circles in which I find myself after hours of doomscrolling. The “cost of living crisis” that we’re all feeling biting us in the backside is being reframed as a “cost of greed crisis,” as massive corporations continue to profiteer off the misery of ordinary people. It’s incredibly galling to see a company pleading poverty in public statements, then turning around to its shareholders and boasting of record-setting profits, but it’s something that we see more and more often these days. Corporations will claim they’re “suffering” through this crisis just like the rest of us – but they still seem to find the money to pay massive shareholder dividends and furnish their executives with eye-watering bonuses.

It’s through this lens that I view Sony’s PlayStation price hike. If you’ve missed the news, Sony is jacking up the price of PlayStation 5 consoles around the world from a recommended retail price of £449 to £470 here in the UK, and from €499 to €549 in the European Union. Similar price hikes are taking place in Australia, Canada, China, Japan, and Latin America – although the USA seems to have escaped, at least for now.

PlayStation 5 consoles are about to get a lot more expensive.

This is unprecedented for a games console. As time goes by, consoles have always seen price reductions, not price increases, and as each generation of home consoles wears on there’s an expectation that manufacturers will lower the price, enabling more and more people to pick up the latest machines. Sony is bucking this trend in the worst way possible and at the worst time possible, throwing into chaos plans many folks will have had to pick up a PlayStation 5 in the run-up to the holidays.

At a time when many of us are suffering as a result of inflation, excessive bills, and other financial pressures, it’s incumbent upon corporations like Sony to try to minimise the damage. Sony doesn’t need to jack up the price of PlayStation 5 consoles now; doing so is pure greed and a desire to make already-excessive profits look positively gluttonous. It’s a reminder, if one were needed, that no corporation is ever a friend. Corporations’ loyalties lie with those who are already wealthy: the 1% who own massive stock portfolios and for whom there will never be a choice between going cold or going hungry. Sony has nailed its colours to the mast with this decision – but it’s hardly the only corporation to be using the current cost of living and inflation crises as a paper-thin excuse for profiteering.

Sony is jacking up the price of PlayStation 5s all over the world.

Sony has already demonstrated how anti-consumer it can be with the piss-poor launch of the PlayStation 5, one of the worst console launches ever. By failing to produce enough machines, Sony played right into the hands of touts and scalpers, ensuring that many players – and many children – were left disappointed and unable to acquire a console. Those who did either had to be exceptionally lucky to find a shop that had a console in stock or pay ridiculously-inflated rates to a scalper. Sony took no action whatsoever to prevent this, and for months after the console launched it wasn’t uncommon to see units on auction sites and private social media sales where prices were more than double the RRP.

In addition, most new PlayStation 5 games have seen a huge increase in price since the beginning of this new console generation. Games that used to cost $60/£55 now regularly go for $70/£65 – and that’s often just for the “base” or “core” version. Complete games, including pre-order bonuses, special editions, and the like can easily be in excess of £100. So players are being hit and hit again by Sony – and by other greedy companies in the gaming realm.

Different special editions are available for upcoming PlayStation title The Last Of Us Part I.

At the end of July, shortly before this PlayStation price hike was announced, Sony made another announcement. The corporation told investors and shareholders that it was predicting profits for the 2022-23 financial year of $8.4 billion. Let’s repeat that: Sony expects to make $8.4 billion of pure profit over the next few months – and they have the sheer fucking audacity to turn around a couple of weeks later and tell players that it’s getting too expensive to make PlayStation 5 consoles so the price has to go up. Two words for you, Sony: fuck off.

Earlier in the year, Sony also announced record-setting profits in both its film and music divisions, with Sony Pictures making a profit of $394 million in just the first quarter of the year and the corporation’s music division surpassing that, posting a quarterly profit of $471 million. This reminds us of something important, too: Sony is a massive corporation whose reach extends far beyond gaming.

A summary of Sony’s increased profits in the first quarter of this year.
Image Credit: Sony Group Corporation.

Even if we accept Sony’s claim at face-value – that manufacturing PlayStation 5 consoles and buying the required components has become more expensive – then Sony, as a massive corporation, can easily offset any increased costs with the record-breaking profits it’s been making in other fields. Music and cinema are just two examples shown above, but Sony also has many other profitable business divisions and subsidiaries, and by taking a tiny fraction of those record profits, Sony could have avoided passing the price increase on to the rest of us at a time when inflation and the cost of living catastrophe is really hurting a lot of people.

This is pure greed, there’s no two ways about it. Sony has demonstrated, in truly callous and uncaring fashion, just how little respect or care it has for practically everyone. And if you’re an American thinking that this isn’t coming your way: I wouldn’t bet on it. Sooner or later Sony – and perhaps other corporations in the gaming space, too – will increase your prices just like they have in the rest of the world.

Different PS5 editions.

We could talk at length about where inflation has come from, what’s causing all of these problems (and spoiler alert, it isn’t all Putin’s fault), and maybe one day we should. But for now, I think it’s enough to say that this price hike from Sony is about greed. Sony is a greedy, money-grubbing corporation that has chosen to screw over its own fans and players at a time when it’s already making more money than it’s ever made before. Sony will soon be paying out some of that money – your money – to shareholders in the form of dividends and to executives in the form of massive bonuses, all while the rest of us are barely keeping our heads above water with a huge storm heading our way this winter.

For some folks, a PlayStation 5 was something that, despite shortages, they were still hoping to pick up in the months ahead. For some parents, a PlayStation 5 seemed like a great Christmas gift. Sony is doing everything it can to hurt those people, forcing them to pay more unnecessarily at a time when people simply can’t afford it.

Profiteering is absolutely disgusting and Sony should be ashamed of itself.

PlayStation and PlayStation 5 are the copyright of Sony/Sony Interactive Entertainment. This article contains the thoughts and opinions of one person only and is not intended to cause any offence (except to corporate profiteers).

The real price of next-gen consoles

Were you lucky enough to secure a pre-order of the Xbox Series X or PlayStation 5? If so, congratulations! You’re one of the few who managed that feat. Both consoles sold out as soon as pre-orders were available, meaning a lot of people hoping to pick up one of the new machines this year were left disappointed.

A lot of factors came together to make this happen, and we’ll look at them in turn. First is the confusing way in which both Sony and Microsoft made their consoles available. Pre-orders for the PlayStation 5 “accidentally” went live hours ahead of schedule, meaning a lot of people who had planned to pre-order at the promised time missed out. There is no one place where consoles may be pre-ordered either, with retailers from big outlets like Amazon and supermarkets down to smaller specialist games or electronics shops all offering to take customers’ money. As many found out later, problems with stock availability and allocation meant that a lot of pre-orders were either cancelled, rejected, or could not be fulfilled on launch day.

The newly-released PlayStation 5.

Then there are the “bots.” Automated computer programmes bought up a significant percentage of the available supply of new consoles, leaving many machines in the hands of touts and scalpers. These consoles are currently being re-sold for well over the asking price to disappointed gamers who missed out.

Finally there’s the question of how many machines were manufactured. When coronavirus hit China hard earlier this year, production of next-gen consoles was majorly disrupted. Some factories were closed for weeks, others cut back their output, and the consequence for both Sony and Microsoft was that far fewer next-gen consoles were available in time for launch than they expected. I noted this a few months ago when I asked the question: is now really the right time to launch these machines?

There was always going to be high demand for these machines, and both Sony and Microsoft knew that they’d sell out on launch day. In fact that’s usually part of the plan; selling out makes a machine look exciting and cool, and fear of missing out drives sales. No company wants to see images of huge numbers of unsold machines sitting on shelves in the period after launch.

An Xbox Series S/X control pad.

But even in that environment, the reduced manufacturing capability has had a huge impact, make no mistake. The plan had been for millions more consoles to be available; Sony told us this directly when they announced a few months ago that they would have several million fewer consoles ready to go on launch day than they initially planned. When their business model was already based around artificial scarcity, the loss of several million units has made an already difficult pre-order process practically impossible when combined with the other factors listed above.

So on to the title of this article: how much does an Xbox Series X or PlayStation 5 really cost if you want to get one before the end of the year? I went to a popular auction website and compiled a short selection of listings. Take a look:

A selection of auction listings for Xbox Series X and PlayStation 5 consoles in the UK on the 17th of November 2020.

As you can see, prices are approaching double the recommended retail price here in the UK, with scalpers and touts even selling pre-ordered consoles that they don’t actually have in their possession yet. Anecdotally I’ve heard from friends in the United States of PlayStation 5 consoles being sold for upwards of $1200 – well over double the asking price.

In a way, this is “pure capitalism.” This is what happens when companies don’t have enough stock for consumers; the law of supply and demand kicks in. If someone is willing to pay £900 for a PlayStation 5, then there will be a market for that. The true price of these machines right now, in November 2020, is not the recommended retail price of £450. It’s £700, £800, or £900. And with no indication of the availability of either console improving before Christmas, those prices may yet rise further.

Companies are totally fine with this. It doesn’t matter in the slightest to Microsoft or Sony whether a genuine player buys a console or a bot picks up that console for a scalper or tout to re-sell later. They still make just as much money no matter who the buyer is, so they have absolutely no incentive to find ways to stamp out this behaviour. Likewise, retailers from game stores to supermarkets to giants like Amazon don’t care – and it’s through online retailers that the vast majority of pre-orders have been taken.

The market – that amorphous entity that economists love to talk about – determines the price and value of products. If people are willing to pay £900 for a PlayStation 5 then that’s its true value. But is it worth it? Could any video game console possibly be worth £900?

It will come as no surprise to you to learn that my answer is a resounding “no.” Not only are these machines not worth such a ridiculous amount of money, they’re probably not even worth their official price right now.

This new console generation is, at best, a minor improvement over the current one in most of the ways that matter. Add to that the fact that practically every game currently available for the PlayStation 5, and every single game currently available for the Xbox Series X, are also available on PC, PlayStation 4, and Xbox One, most players would find it hard to tell the difference between playing on a current-gen or next-gen machine. There are iterative changes, such as faster loading times, better controller battery life, and so on. But there’s nothing significant in terms of graphics or gameplay that make either console a “must-buy” in 2020. Any such improvements won’t be seen for a year or more; perhaps by 2022 you could make the case that games are getting better thanks to these machines. But not yet.

There was a lot of hype and buildup to the launch of these new consoles, as is to be expected. And a lot of players were sucked in by the hype and decided that they needed a new Xbox or PlayStation on launch day no matter what. If they paid over the odds for their machine from a scalper or tout, I bet a lot of them regret that investment today.

With the new consoles offering small improvements at best, there’s no need to get one right now. Don’t reward the scalpers and touts with their scripts and bots who bought up as many consoles as they could. Jump off the hype train and be patient, and enjoy the exact same games on current-gen hardware. Chances are you wouldn’t be able to tell the difference anyway.

The Xbox brand – including the Xbox Series X and Series S – is the copyright of Microsoft. The PlayStation brand – including the PlayStation 5 – is the copyright of Sony. This article contains the thoughts and opinions of one person only and is not intended to cause any offence.

Is it the right time for new video game consoles?

A lot of things in the world are a mess right now, upended by the ongoing coronavirus pandemic. In addition to the tragic loss of life we’ve seen lockdowns, job losses, and economic chaos on a level unseen for a long time. And tech companies – including Sony and Microsoft – have suffered as a result of major disruption to supply chains and manufacturing facilities. Yet despite all that, both companies are pressing ahead with their new video game consoles, scheduled for release in November. But is that the right decision? Or might it have been better to wait a year or two?

One of the things that struck me most when looking at all the gameplay and footage released by both companies is how absolutely minuscule the so-called “upgrades” are, at least in terms of the way games will look on PlayStation 5 and Xbox Series X. Both companies use graphics as one of their major selling points, yet when you stack up a current-gen and next-gen version of the same title side by side, it’s hard to really see a difference.

Perhaps some consumers who have an incredibly fancy (and incredibly expensive) television – or superhuman eyesight – will notice a big change. But I didn’t, and from what I can tell by reading and listening to the reaction from players, a lot of other folks can’t either. There is more to a good game than graphics, but when it’s a key selling point I think it’s not unfair to say that players expect something more than either new console is able to offer.

The trouble is that even on the oldest version of current-gen systems – those consoles released in 2013 – games look pretty good. Players have been enjoying the visual style of titles like The Witcher 3 for years, and even some launch titles from 2013, like Ryse: Son of Rome, look fantastic. Any upgrade was always going to be minor, and things like slightly more realistic controller rumble or faster loading times are difficult things to market to the average player. The result? It’s hard to escape the feeling that the two new consoles already feel like a minor upgrade at best… and a waste of time and money at worst.

That’s before we account for the fact that disruption across all areas of the industry has massively complicated matters.

The Xbox Series X is going to be released without its key launch titleHalo Infinite. This game should have been one of the console’s selling points – despite its simultaneous launch on Xbox One. Without it, the Xbox Series X will be released with some cross-platform games and not a lot else.

However, things are even worse for Sony. The company recently announced that they were producing several million fewer PlayStation 5 consoles than expected. As a result there has been pre-order chaos. Initial plans to hold a “lottery” to determine who could pre-order a machine didn’t pan out, and the console sold out within minutes of being made available. Reportedly, some shops have either cancelled pre-orders outright, or informed irate gamers that they may not receive their console on launch day despite thinking they’d secured a pre-order.

We’ve seen consoles launch without sufficient stock numerous times. Here in the UK, getting a Nintendo Wii was nigh-on impossible in 2006 and throughout most of 2007, such was the lack of stock. Even with that in mind, though, this feels worse. Reducing the number of units available worldwide is clearly indicative of a company struggling with production, yet rather than delay or take steps to rectify the situation, Sony has been quite happy to make the PlayStation 5 impossible to get hold of – something which will only be to the benefit of shady resellers who’ll happily sell the console for double its asking price in the run-up to Christmas.

All of this comes at a time when many people are in financial difficulty or face an uncertain financial future. As the pandemic drags on and the idea of “getting back to normal” seems further away than ever, companies are closing left and right, and as temporary schemes like the furloughing of employees come to an end, many people will be out of work. A £450/$500 outlay in that environment is an impossible ask, and feels decidedly anti-consumer. This is made worse by price rises of games themselves, many of which look set to retail for £65/$70 when the new generation arrives.

As we approach what could be a bleak and lonely Christmas for many people, players and parents are looking at these companies and asking themselves how they could possibly have the audacity and lack of awareness to go ahead with something like this. The minor upgrade that most people perceive is incredibly overpriced at £450, and even the Xbox Series S with its lower price will still be out of reach of many in 2020.

I look at these consoles, and the footage the companies selling them have released, and I’m asking myself who would be interested? At least Microsoft can say that their policy of releasing games on Xbox One for the next couple of years – bizarre though that is in many ways – means that players can stick with their current systems and don’t need to shell out a ton of money for this minor upgrade. But Sony still plans on having exclusive games, and are in effect gating off those titles behind a very expensive paywall, one which will prove insurmountable for many players in 2020.

“Big companies do something anti-consumer” is not a surprising headline, either in the games industry or beyond. And as someone who worked for a large games company in the past, I understand that there are many factors at play, including research, development, and manufacturing contracts that were almost certainly too far along to be undone at the time the pandemic hit. Even so, I’m struggling to see how releasing these machines now is a good idea. A one year delay would allow both companies to resolve manufacturing issues, produce far more stock, and allow more development time for launch titles in order to overcome pandemic-created problems. We might even see marginally better graphics as a result. And a delay of a single year wouldn’t mean the internal components of either machine would feel out of date – they would still be cutting-edge devices even if they weren’t launched until November 2021.

Regardless of what some of us may think, the console launches are going ahead. Manufacturing is well underway, and with mere weeks to go until launch day it would be very difficult – if not outright impossible – to slam the brakes on at this late stage. Despite my misgivings both machines will still sell, and will be picked up by enthusiasts with enough disposable income. The beginning of a new console generation always leaves behind those who can’t afford to make the switch; this time around there’s just more people in that position. Hopefully things really will get back to normal soon so everyone can enjoy the next generation of consoles… and the minor changes they have to offer.

The Xbox brand – including the Xbox Series X – is the copyright of Microsoft. The PlayStation brand – including the PlayStation 5 – is the copyright of Sony. Both the Xbox Series X and PlayStation 5 will be released in November 2020. This article contains the thoughts and opinions of one person only and is not intended to cause any offence.

How long can Sony and Microsoft get away with hiding their prices?

For me, the beginning of September has always marked the start of the slow march to the holiday season. It’s the end of the summer holidays, kids return to school, the weather slowly cools, leaves begin to fall, and sunset gets earlier – all signalling that autumn has begun. It’s around this time of year when thoughts turn to the holidays, and to budgeting for big expenses at that time of year. With that in mind, now that we’re into September, it’s a surprise to me that we don’t know how much the PlayStation 5 and Xbox Series X are going to cost.

It’s pretty obvious that both companies are playing a high-stakes game of “chicken” – neither wants to announce first so they’re both holding fast, waiting for the other to make the first move. Looking back at past console launches, the cheaper system has been by far the best-seller. The Xbox 360 undercut the PlayStation 3 and enjoyed great success in that console generation, and the PlayStation 4 came in $100 cheaper than the Xbox One, and while in that case price arguably wasn’t the only factor in the Xbox One’s troubled launch, the fact that the cheaper console sold significantly better is clearly impacting Microsoft and Sony’s decision-making at this critical time.

The upcoming Xbox Series X. Price? Unknown.

But in past cycles, prices were announced much earlier. By the middle of June 2013 we knew the prices for the PlayStation 4 and Xbox One – more than five months ahead of their launches. Microsoft promise the Xbox Series X is coming in November, and it’s assumed that the PlayStation 5 will follow suit. But November is literally in just a couple of months now, and there’s still no price information.

If it were good news, I think it’s fair to assume we’d know by now. If either company were planning to launch a system for less than say £350, they’d have made that abundantly clear and would be using it as a selling point. The fact that they’re keeping their pricing plans secret is in part because of how they’re in competition with each other, but it’s also at least in part because it’s bad news – both consoles are going to launch with a hefty price tag, which is not a good look in 2020 with the economy flailing.

Microsoft has perhaps the most riding on pricing. As I’ve said before, undercutting the PlayStation 5 is perhaps their last good strategy for the already-beleaguered Xbox Series X, which has seen incomprehensibly bad business decisions already hamper its launch. If the Xbox Series X could find a way to be a hundred dollars (or more) cheaper than the PlayStation 5, suddenly it seems a better proposition and Microsoft is back in the game.

The soon-to-be-released PlayStation 5. How much will it cost? Nobody outside Sony knows.

Sony seems better-placed than Microsoft right now, with a good lineup of exclusive games that are being built from the ground up for the PlayStation 5 instead of being limited by current-gen hardware. But an excessively high price could see them repeat the problems faced by the PlayStation 3 two generations ago, and even if they don’t end up charging $600-650 as some have suggested, if Xbox is able to undercut them they could still suffer. So while Microsoft has arguably the most to gain from a positive reaction to pricing, Sony certainly has the most to lose from a negative reaction.

At this late stage, though, both companies are going to suffer criticism and negative feedback for as long as they keep their prices covered up. With two months to go until launch, players and parents need to know how much to budget; keeping this information private is incredibly anti-consumer. Both Sony and Microsoft know their prices by now, having worked out how best to break even and turn a profit. They’re staying quiet on purpose, and people are starting to talk about that.

These are undoubtedly going to be pricey machines.

Sooner rather than later, both sides are going to have to rip off the metaphorical bandage. If the prices are high, reaction will be negative, especially from players whose jobs are under threat in a seriously disrupted economy. But going into the launch with that negativity around their necks will be harmful to Sony and Microsoft, and the more time they have after making price announcements means more time for their marketing and PR departments to spin it in a positive way – or at least blunt the edge. In short, if it’s bad news, giving players more time to get used to it rather than going into the launch window with potential buyers still reeling from the shock announcement will be beneficial.

A delay helps no one, and in the end will backfire on both companies and hurt them as they go into their most important sales window in seven years. In the absence of news, people will make their own assumptions – and the assumption right now is that if they had something good to say on pricing, they’d have said it ages ago and built their marketing around it! The conclusion gamers are drawing is that both consoles are going to be expensive – perhaps the most expensive machines ever, even topping the $600 mark. That’s putting people off right now, as in the current economic climate it’s increasingly hard for many people to justify such a large expense on a “luxury item” like a games console.

We need to see both companies make immediate announcements on price and stop messing around. The corporate game of “chicken” has gone on too long, and its anti-consumer nature is already causing both companies and their brands harm. They can’t keep this up any longer – players have a right to know how much they’re going to be expected to fork over for the new consoles.

At this stage I don’t know when we could expect an announcement. It may be imminent from one or both companies… or it may not be something we’ll get for weeks or even until next month. That would be a mistake for the reasons I’ve already given, and at a time like this, consumers need clarity. Both the PlayStation 5 and Xbox Series X are going to be expensive pieces of kit. We get it. But please just tell us how expensive so we can either start saving up or get the disappointment out of the way.

Both companies have been looking at this situation selfishly. Microsoft sees a pathway to a better-than-expected launch, and Sony fears losing the dominance they’ve enjoyed for years. But both companies’ selfishness has crossed a line into being something decidedly anti-consumer, and it needs to stop. At this point, I’d even wager that the company willing to make an announcement will get at least some positive reaction simply by demonstrating they’re not covering up their price. Either of them could even stage an event based around how their competitor is keeping their price a secret – something that could give them at least a temporary boost.

Either way, this has gone on too long. It’s past time that players around the world got to learn how much they’ll have to play for next-gen gaming in a couple of months’ time. We shouldn’t be in this position of having to ask and ask and ask – this information should have been available ages ago. From this point on, every day that Microsoft and Sony continue this cover-up is going to hurt them – and hopefully when they see that, they’ll finally come clean.

The Xbox Series X is the property of Microsoft, and the PlayStation 5 is the property of Sony. Both consoles are due for launch before the end of 2020. This article contains the thoughts and opinions of one person only and is not intended to cause any offence.