There was big video game industry news this when Sony, after months of rumor and speculation, finally and officially unveiled the PlayStation 5 Pro. The disc-free system is more powerful than the PS5 and boasts impressive technical specs. But the reaction online was mainly focused on its price tag: $700 USD. Many were left scratching their heads and wondering: Who is this for?!
According to Circana analyst Mat Piscatella, the console is targeted at the “price-insensitive PlayStation ultra enthusiast.” He told GameSpot that, for this audience, the price point is “not a significant barrier” and that the market for the PS5 Pro represents only a “very smell portion” of the total PlayStation fanbase.
The people who may be interested in purchasing a PS5 Pro are those who feel they “must have the latest and greatest PlayStation tech.” Everyone knows someone who always buys the newest iPhone, after all. As Piscatella reminded us, plenty of people paid $1000+ for a base PS5 model in 2020 when the system came out through third-party sites due to shortages.
“And, according to Circana’s Checkout service, PlayStation 5 already attracts the highest percentage of high-income household purchasers than other console platforms in the US,” Piscatella said. “49% of PS5 hardware US buyers in the three-month period ending July 2024 had household incomes over $100k per year, as compared to 43% of Xbox Series buyers and 40% of Switch buyers.”
Piscatella admitted the PS5 Pro price at $700 (and that’s before tax and add-ons, like the $80 disc-drive) is “expensive,” but, again, it’s not aimed at the everyday PlayStation player.
The analyst didn’t have a firm prediction for the number of units the PS5 Pro could sell at launch, noting it would depend in part on the number of units available. That being said, Piscatella said he believes the PS5 Pro could make up 15%-20% of total PS5 consoles sold in the first two months after launch. That percentage should go down in the months after, he said.
Looking back at the PS4 Pro, Piscatella said the console made up about 13% of total lifetime PS4 unit sales and about 15% of lifetime PS4 dollar sales.
“I’m estimating PS5 Pro to finish the generation somewhere between 9-15% of total lifetime PS5 units, with a slightly higher percentage in dollars because of its higher price,” he said.
$700 is a lot of money–there is no denying that, so Piscatella said he understands the “mixed” reaction online about the price tag in particular. But he pointed out that the reality of the video game market today demonstrates that people will pay more.
“The console market is stratifying in many ways. Some games have $249 Collector’s Editions, games often offer a few days of early access so long as someone is willing to pay $99.99+ for that game. Premium gamepads and headsets are offered at premium price points… The list goes on,” he said.
There was a time when only one version of a game, one version of a controller, or one version of a console existed–but those days are gone. “Companies are trying to maximize the dollars they can generate from both price-sensitive and price-insensitive consumers. This has been a bit of a painful transition for many console fans. I get it, but it’s where we’re at, and this trend is not going to slow anytime soon,” Piscatella said.
Piscatella’s commentary largely matches up with what Piers Harding-Rolls of Ampere Analysis said earlier this week in an open letter. He wrote that the PS5 Pro is aiming at the “enthusiast” audience, along with people who have yet to buy a PS5 at all and want to get the latest and best model.
Harding-Rolls, too, said he understands the “commentary” surrounding the PS5 Pro’s hefty price tag, which is larger than the price gap between the PS4 and PS4 Pro when that system debuted in 2016.
“PS5 Pro pricing reflects Sony’s adjusted strategy to protect its margin, general supply chain inflation and a lack of direct competitor to its mid-cycle upgrade compared to last generation (where Microsoft was preparing the Xbox One X),” Harding-Rolls said. “The lack of competition means it is an easier decision for Sony to run with a higher price point to protect its existing margins. For most prospective PS5 consumers, the standard edition will represent the value sweet spot.”
Harding-Rolls also talked about how he expects the launch of Grand Theft Auto VI in 2025 to “drive a wave of upgrades,” with a portion of the audience eyeing the PS5 Pro to play the long-awaited Rockstar title. The analyst also went on record in forecasting PS5 Pro sales of 1.3 million units during the launch window, which is less than the 1.7 million PS4 Pro consoles sold at launch in 2016.
By 2029, the PS5 Pro could sell around 13 million units, Harding-Rolls, and this would put it in line with the Wii U, which achieved that many consoles sold during its lifetime.
In addition to announcing the $700 PS5 Pro, Sony this week raised the price of DualSense controllers by $5.
This news came after Sony revealed that PS5 hardware sales were down about 27% year over year for the company’s first quarter of fiscal year 2024–April 1 to June 30. Historically, console prices drop over time due to the component costs coming down, but due to the pandemic and other factors, that isn’t the case this time around. As mentioned above, PS5 console prices have gone up in Japan and other parts of the world, but not the US. Sony has said its price increases are related to global economic conditions.
For its part, Microsoft has also raised Xbox and Game Pass prices, leaving Nintendo as the only one of the big three console manufacturers to keep prices steady this generation.
For more on the PS5 Pro, be sure to check out GameSpot’s rundown of all the PS5 Pro-enhanced games so far. The system launches on November 7. Preorders for the PS5 Pro open on September 26.
