How PlayStation 5's marketing make notorious in some regions and ruined gamers’ interest
(All PS5’s price is using with disk version, unless specified in paragraph.)
It almost a year release of PlayStation 5 (according to the release date of this story) that more games are rolled out for sale. Although the price is US$499 which more expansive than US$399 of PlayStation 4’s release price, it still making people interested to buy one. However, due to COVID-19, the production process is not able to catch up the demand, which included majority of Eurasia and North America players, especially Asian players using PlayStation to play 3A title games.
PlayStation 5 is a successor of PlayStation 4 which using 7nm AMD Zen 2 CPU and GPU with 825 GB of high speed SSD storage despite only allow installed limited games which have average 50 GB or above (and opened m.2 extension right now which maybe more). Because of premium hardware, it is undeniable that why PS5 is more expansive than PS4 back to release date. But unlike PS3’s overpriced Blu-ray start-up technology, PS5 is worth to sell expansively to minimize the performance gap between gaming PC and gaming console.
Become trend first, than fall immediately
As mentioned before, PS5 production is unable to catch up the demand and causing sold out rapidly. It attracted more player trying add pre-order PS5 queue. Meanwhile, someone who decided to sell PS5 immediately with double the original price.
According to this line chart, the average market price is around 1.5 time of the retail’s recommended price. And the parallel PS5 has been cheaper and stable since latter August, but still higher than normal price comparing HK$3,980 as official price from Sony. It causing players refuse to purchase PS5 almost one year and waiting until the price back to normal price range.
Sony improper marketing policy causing players step back their interest
So, what reason causing PS5 price rise like a rocket? First, Sony open PS5 pre-order with lottery way for choosing lucky player is the main reason that causing high price of PS5. You can not guarantee to get one even you submitted at first as possible. But ironically, PS5 is not a “limited" items since it lower quantity is caused by pandemic. It still able to make more production and better to use first queue first order to ensure everyone have right to get one, not randomly pick lucky players.
It result to making PS5 as a rare item and rising it price to unreasonable level, and majority of players try to pre-order again or even wait until the demand become stable. And they never buy an existed PS5 which hosting in second hand market platform.
The concept of risen PS5’s price and how unaffordable for the players
To better know what you can buy with the same price of risen PS5, I found mostly used daily life item in United State to compare (using HK$6500 (US$834.85) as comparison which is the market price record of 17/9 from the line chart):
- 139 sets of Big Mac meal from McDonald
- 419 cans of Coca Cola
- 64 boxes of large cheese pizza from Domino
- 7 tickets of Daytona 500 in 2021
- 2948.69 gallon of fuel
Actually, this price can be brought a mid-range DIY PC which also playable for the game which release both PS5 and PC and almost able to buy 2 Nintendo Switch as once.
However, you may said it is possible for saving money and buy it just few months. It is not work in my living place, to consider the player age range is not exceed 45 in average, and the salary is not exceed US$2000 if as a newbie. Thus, including price of renting, water, electric and gas supply which almost used 2/3 of their salary. If they buy PS5 as soon as possible, it worthless and reckless action as it also means they have no extra amount for emergency things like illness.
I can not blame Sony at all since it also a victim of this incident. However, it still need to get adjustment of pre-order method to ensure every play have fair enough to get PS5.
The main reason of these unreasonable price of PS5 is human’s greedy, if someone accept unreasonable price of the console, the seller will try to rise the price and expecting someone will buy as there are no more sources to get one. Therefore, falling the vicious cycle and leaving PS5’s unreasonable price as high as until production back normal. However, it becomes loss who purchased PS5 when at high price.