Sony’s latest earnings report shows record growth for the hardware sales of their current gen console, the PS5. However, the total game units sold is the lowest they’ve been since 2019. Data analysis (via TweakTown) suggests that the higher price tag of games might be to blame for the lower unit sales.
The data comes from the third-party launch of Call of Duty: Modern Warfare 2 on the PS5 platform. On PS5, the game saw a decline in overall sales despite the all-time high in revenue occurring at the same time. This led to the conclusion that gamers on the PS5 buy less games, but spend more on games they purchase.
The news is bad news for those hoping games return to the $60 price tag of the past. Companies care more about the bottom line instead of just selling more units. Therefore, it appears game publishers make more money with the higher price tag – which means that sacrificing overall sales is worth it for them in this case.
This analysis is backed up by a study published in the Journal of Interactive Marketing, which found that raising the price of a product can lead to an increase in revenue. The study found that the increase in revenue was due to the fact that customers perceived the higher priced product to be of higher quality.
It’s clear that the higher price tag of games is having a negative impact on game sales on the PS5. While this may be beneficial for game publishers in the short term, it could have long-term consequences for the industry as a whole.
Content Source: Niche Gamer
