We all know that PS5 is a fairly modern technology device and not everyone can own them. So the question is why are they very expensive? Let’s learn about this with us through the article Why Are PS5 So Expensive And The 10 Best Reasons.
10 reasons why ps5 is expensive
1. Sony Planned For Fewer Sales
One of the reasons that the supply of PlayStation 5 consoles is so low is that supplier Sony has planned for this problem. Instead of hitting the market with an endless supply of PlayStation 5 consoles, Sony aimed for a much more limited launch plan. There are a few factors to consider when it comes to why Sony limits the number of PlayStation 5s they can sell in the first year.
The first thing is profit, this is a strategy that has proven to be very successful. Another factor to consider is the unprecedented historical events that we have experienced in the past two years. The coronavirus pandemic has made markets around the world unstable.
The PlayStation 5 is also the most powerful game console in history. This means that it requires very demanding and powerful fabrication technology. The price of advanced technology is always higher than that of previous-generation models so that is quite understandable.
2. Supply And Demand
This is a simple reason to understand why the current PS5 is so expensive. Supply and demand is also one of the basic laws of economics. When supply is low and demand is high, commodity prices will also increase accordingly. Currently, there are not nearly enough PlayStation 5s products to offer everywhere in the market.
This means that the prices of available products will be much higher than usual. The price of the product will always be at its peak as soon as everything hits the market. This is partly because companies know that users will be willing to pay higher prices early on, so the price of the product will always stay high.
3. COVID Also Changed Who Buys PS5’s
As the covid pandemic broke out all over the world, many business people turned to new markets to look for new opportunities and earn even more money. There are people who have even switched from the business of designer sneakers to the business of video game consoles. This changed the way we viewed the cost of game consoles when they first hit the market.
Some business expanders have even received triple the profits for PlayStation 5 consoles right in their release cycle. The Covid pandemic has caused a lot of economic instability and even unemployment. Individuals who previously made money selling clothing and other items turned to the video game equipment business as a way to continue making money. This changed the price of the consoles.
This is not only for now but also for many years to come. This is also the next reason in Why Are PS5 So Expensive And The 10 Best Reasons.
4. COVID Changing Gaming Habits
The coronavirus pandemic has also changed many aspects of our lives. This is also the next reason in Why Are PS5 So Expensive And The 10 Best Reasons. One of the less talked about during the pandemic is how people play video games. According to some survey statistics, the number of people playing games during the covid pandemic increased by 45% compared to before.
This will have a big impact on the cost of consoles and gaming accessories. With a large number of participants in the gaming market, the demand for gaming equipment will increase, so the price will be higher. This will naturally increase the cost and scarcity of the latest gaming models released by the three major console gaming companies.
5. The Chip Shortage
We are currently experiencing a global shortage of semiconductors. This is driving up technology costs across the board, and it’s well worth considering what’s happening with the chip and processor shortages in consoles. The first reason for the shortage is probably because the demand for consumer electronics has skyrocketed.
Besides, the impact of the covid-19 pandemic makes the demand for personal electronic devices increase. Whether you’re in need of a new laptop for working from home or looking to expand your home entertainment options, companies around the world are racing to fill the need by buying all both microprocessors and semiconductors that they can find on the market.
6. The High Cost of Parts Has Increased Console Prices
One big thing to note in Why Are PS5 So Expensive And The 10 Best Reasons is that the material price of the PlayStation 5 console has gone up a lot. The PlayStation 5 was once one of the cheapest consoles ever released when adjusted for inflation.
One of the reasons the PlayStation 5 console has become more expensive is because the cost of materials has skyrocketed. More and more electronic devices depend on raw materials that were once used for computer technology. It is turning everything into smart versions of technology that has had unpredictable consequences throughout the economy.
7. The Cost Of Computing Memory
You can store the entire Super Nintendo game catalog on a flash drive. Whereas a PS5 game can take more than 50 GB to install properly. The amount of memory our games need has increased dramatically over the past few years. If you want to play the most modern games, you will need a lot of memory to back it up.
Storage costs are one of the costs driving the PS5’s price. To load more games on PS5, you will need more memory. PlayStation 5 already comes with plenty of storage, but that may not be enough for all users. The memory expansion is also the reason for the increase in the cost of this console.
8. The Cryptocurrency Boom And The PS5 Shortage
Another unexpected consequence of the chip shortage has left crypto miners and gamers in separate positions. Graphics prices are currently at their peak when it comes to technology. Years ago, your graphics card might not have been the most expensive part of your personal computer.
However, today, graphics cards are considered one of the most sought after items in the computing and technology sectors. This means that the chips could help bring down the cost of the PlayStation 5 and will instead be redirected to graphics cards, which are then sold to bitcoin miners. Industry leaders are speculating that there is no clear end to this conflict.
Cryptocurrencies are still on the rise and if that trend continues, it will increase demand for graphics cards and processors.
9. The Global Shipping Crisis
In addition to the factors listed, the cargo freeze during the pandemic is actually a global shipping crisis. News of a boat stuck in the Suez Canal is just the tip of the iceberg of a global shipping crisis. Between changing manufacturing and outsourcing standards and the covid-19 pandemic, global shipping has never been in greater demand and higher stress than it is now. One of the things lost in the shuffle is not only the PlayStation 5 console, but also the parts to make them.
10. The Real-World Cost Of The PS5
If you’re the lucky one who can find a PlayStation 5 at a retailer, you’ll have to pay $499 for it. However, this is only part of the question of how much PlayStation 5 really costs. To get the most out of your console, you’ll need a few extra things that increase the real cost of what individuals will spend on PlayStation 5.
All of these factors combined increase the amount that individuals actually spend on the PlayStation 5 well above the $499 price tag. The last cost that we will look at in this list is a surprising factor that is driving up the price of the PS5 console.
Related questions
When Will PS5 Price Drop?
This is indeed a rather difficult question because it is impossible to know when the PS5 price will drop because there is still a huge shortage. The chip crisis is far from over although experts believe it will subside by 2023. However, since Sony is constantly making new shipments, most people will have a gaming console PS5 demand will drop.
Is the Expensive PS5 Worth It?
A PS5 probably won’t be worth it in 2022, at least not for $1000. However, there are actually very few PS5 games and no exclusive versions. This will likely continue for the next two years as game developers know that most gamers have yet to get their hands on a PS5.
Until then, the PS4 will continue to run all the latest games, albeit at low quality. Also, for $1000 you can get a good gaming PC that will outperform the PS5 in every game and allow you to create a PowerPoint presentation when it’s done.
Playstation 5 Price in the USA
1. PS5 Digital Edition Price
The digital version of the PS5 is the fully digital version of the regular PS5. It doesn’t have a drive, and you have to sign in to your PlayStation account to download and buy games. The digital version launched for $399 but is on sale for up to $800 in most market stores.
2. How Much Is a PS5 at Walmart?
Walmart is probably the first stop for those who want to buy a PS5 in an official store. Prices start at $600 for the digital version and go up to $1000 for the disc version with an added warranty. This is also the next information in Why Are PS5 So Expensive And The 10 Best Reasons.
3. How Much Is a PS5 at Gamestop?
GameStop is another great place to look for PS5s thanks to their wide variety of used and refurbished units. Prices start at $450 for a used PS5 disc and go up to over $1000 for a brand new console you can own.
4. PS5 Price Amazon
Amazon is also a platform with a large selection of PS5 due to the high number of providers here. Prices start at $400 for the digital version and around $1200 for the disc version.
5. PS5 Price Best Buy
PS5 doesn’t always have the best stock to buy. But when it does, they sell for roughly the same price as MSRP.
How Can I Get A Cheap PlayStation 5?
Currently, the PlayStation 5 game console is out of stock almost everywhere on the market. Actually, resellers sell them for more than $1,000 in some popular online marketplaces with users. If you are looking to buy a PS5 on the cheap, then the first thing you should do is place an order at all the popular retailers that will offer the PlayStation 5s.
These vendors include Best Buy, GameStop, and Amazon. Signing up for purchases by email and setting up orders will give you the best chance of knowing where the PS5 is in stock at the earliest. Catching up on game news is also a great way to grab your chance to own a PlayStation 5. Many of the larger game news sites often post aggregate articles on who has which PS5 for sale and the price sell.
Hopefully the article Why Are PS5 So Expensive And The 10 Best Reasons will provide you with useful information.
Thanks for reading!
