The Curious Case of the Costlier Console
It’s Not About the Box, It Never Was
Let’s be honest, when Sony announced it was bumping up the price of the PlayStation 5, the collective groan from gamers was almost audible. Another fifty quid just to get your hands on the latest shiny box. It feels like a raw deal, doesn't it? But as an investor, my first thought wasn't for the poor souls still trying to find one in stock. It was, I must admit, a little more cynical. I thought, who actually stands to gain from this?
The answer, it seems to me, is not Sony. Not really. The games industry has long operated on a rather brilliant model, the old razor and blades principle. You sell the razor, the console, for a slim margin or even a loss. Why? Because you know the real money, the consistent, recurring profit, is in the blades, the games themselves. A price hike on the hardware, forced by tedious things like tariffs and supply chains, is a nuisance for the manufacturer. For the game publishers, however, it might just be an unexpected gift.