The Loss Making Sony PlayStation 5 is Soon Going to Start Making Profits

For the past few months, Sony has been selling the PlayStation 5 at a loss. But the company seems to have enough and is going break even in June this year. In fact, the company has planned to turn the table in its favour by converting the loss into profit the same month, i.e., June’21.

The company also shared this loss-making trend via presentation (we got an image from it).

It is evident from the image above that the company had been making a loss up till now (May’21). But from the next month, it will reduce its cost of goods while keeping the wholesale price at a similar level. And in the same month, it will further reduce its cost to start making profits. The company did all this to catch up with demand.

It is pertinent to mention here that this is for the standard PS5, the one where Sony supply a 4K Ultra HD Blu-ray drive and pays as much as $8 per console in licensing fees. It’s not clear if the driverless PS5 Digital Edition is more or less profitable.