The Challenges of Playstation 5.

The Playstation 5 pre-sale has been a success, however, the challenges for the console that will defend the Sony’s championship have not yet begun.

The first phase of the life of the Sony Playstation 5 has concluded with predictable success. It has managed to sell out the first shipments of the product in a few hours.

However, the market has had no choice but to settle for this atypical release, in which no ordinary mortal has been able to lay a hand on it, neither it nor its archrival Xbox. This purchase made by the consumers, practically blind, has been made relying on the strength of the brand and the reviews made by influencers, some not so qualified.

The real challenges for Playstation 5 starts now.

Until today, the pillars on which its business model will rest are three: Brand loyalty, which is what is playing the starring role in this phase, the sale of consoles, which will play the determining role in the financial stabilization phase, and finally, exclusive games, which is the great differentiator of Playstation compared to its competition.

Right now the gaming market is changing, moving towards another an unexplored frontier for Sony, gaming in the cloud. In how much time? I firmly believe that sooner rather than later.

Multi-million dollar investments are being made in R&D to remove the dependency factor of a single or specific platform from the equation, in order to can play high-quality games and thus be able to reach a huge mass of people who are not yet integrated.

On the other hand, there are doubts about the price strategy proposed by Sony for its consoles, which puts it in the opposite direction to the direction the market is taking.

According to a specialist, Michael Pachter, consulted by GamingBolt: “Sony blew it with the All-digital edition of PS5.”

According to Pachter, the losses associated with the sales of the All-Digital Playstation 5, ($ 50 for each console), are practically irrecoverable through the sale of games, for which Sony earns $ 6 each, which would lead Sony to reduce its manufacture compared to the more expensive model, with a reader, which leaves a profit of about $40 per device.

According to this analysis, there will be a greater dependence on Playstation on the physical format, whose sales have been in sharp decline to the point of representing less than 20% of total game sales. This places the japanese brand in a very difficult position in light of the events that are taking place.

The most logical way out for Sony would be to “turn the game around” and procure in the short term a service similar to GamePass that allows it to eliminate this dependence on the physical format, which can act as a burden and damage its forecasts.

We know that the Japanese brand has signed cooperation agreements in this regard, one of them, paradoxically, with Microsoft. What we do not know is if they are developing initiatives to have a similar product and if so, at what level it is.

And finally, it remains to be seen if the performance of the Playstation 5, declared much less powerful than its rival, meets the expectations that have been generated around it, when millions of gamers can, at last, connect and play with it.

It is a developing story and we have to be aware of the plays that the champion is going to make so as not to be dethroned.

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