Half of PS4 owners have not upgraded to the PlayStation 5. Games journalists are perplexed by this, as they are about many things. Why aren’t people getting excited to consume next product? As cited by IGN, Mat Piscatella, Executive Director at Circana, noted that the most popular games are all available on last-generation consoles. This certainly is true, but that doesn’t answer why nobody’s interested in Sony’s newer games and gaming hardware. So, let’s break it down.
A botched launch
Things didn’t exactly get off to a good start for the PS5. Rather than delaying the release, as suggested by yours truly, Sony decided to launch it during the height of the pandemic. On the surface, this seems to make sense. Everyone was trapped inside, so video game stonks were booming. The problem is that someone has to make the hardware. Manufacturers, notably chipmaker TSMC, were having trouble due to supply chain issues and the obvious impact to the labour force. This meant there weren’t enough PS5s available at launch to meet demand. And anytime demand exceeds supply, especially during times of crisis, there will always be some enterprising individuals who take advantage of the situation.
Sony had intended to implement an invitation system, ensuring that only existing and active PSN account holders could reserve a console. This was a very sound plan to mitigate the chaos. Well, until they just dropped it all together without warning. Scalpers rushed in and scooped up nearly every unit available. It became near impossible to buy one, at least from a legit retailer or for anything close to MSRP. This isn’t unusual for a hot ticket item, but the shortages dragged on for over two years. It wasn’t until late 2022 that PS5s became widely available at retail. By that point, that crucial crowd of early adopters had lost interest.
It has no games
The most common complaint I hear online is that the PS5 has no games. That accusation has been thrown at many consoles over the years, but it’s accurate with this generation. The PS5 has been out for nearly four years now; the mid-point for a console’s life. Out of all first-party releases since launch, I counted 9 console exclusive titles, not including remasters, across all regions. Most of its biggest titles have seen cross generational releases on the PS4. Meanwhile Sony released more first-party PS3 exclusives in 2007 alone. We’re talking 5x that, no exaggeration.
A lot of digital ink has already been spilled on the subject, but the fact is that AAA games are both too expensive and time-consuming to make. Even a smaller title like Stellar Blade was being developed since 2019. It’s a lot of work to get those jiggle physics just right. However, with cycles tying up studios for that long, fewer games have released on the platform.
I do applaud Sony’s continued support of the PS4. It’s an excellent system that still holds up well over a decade after its launch. As a Steam Deck gamer, focusing on lower-end hardware is always appreciated. However, consoles still largely live and die by their exclusive library. Otherwise, what’s the point of picking up one plastic box over another? It also highlights the wall of diminishing returns. If your current console can already play most of the latest games, and you’re happy with the performance, there’s not much pressure to upgrade.
I should also touch on the quality of the games. Again, this is something a lot of digital ink has been spilled over. Sony Interactive Entertainment, now being a California company, has adopted a California worldview. Many recent exclusives have been pushing The Message™. This is alongside censorship of East Asian titles, plus a decline in quality and lack of creativity for AAA. This has certainly hurt sales somewhat, as many are getting burnt out on this nonsense. Lack of variety also doesn’t help.
The PS5 is expensive
The PS5 is an expensive boi. Is it Sony’s priciest console? No, that unfortunate title still goes to the PlayStation 3. Even without adjusting for inflation, the phat 60GB still cost $100 more than the PS5 Disc Edition. However, Sony’s newest console was still a crisp five Benjamins at launch. It also had the notoriety of releasing in an economic environment far worse than the PS3.
Many people lost their jobs during the pandemic and those full-time jobs never returned. On top of that, government overspending to mitigate the crisis spurred on massive inflation, which still continues to be a major problem today. Prices for staple items like food, housing, and fuel have gone through the roof. Meanwhile, wages have not kept up. We live in a world where many people are struggling to buy groceries. A $500 console isn’t exactly in the cards. This has resulted in hardware sales seeing notable declines year-over-year in some regions.
On top of that, the PS5 is one of the few consoles in gaming history to have ever received a price hike post-launch. Most global markets outside the United States saw increases up to 20% starting in August 2022, with Sony citing global economic, inflationary, and supply chain pressures. The US would follow suit with the release of the PS5 Slim in 2023. “Slim” console revisions usually receive price cuts as manufacturing processes are refined. While the Disc Edition stayed at $499 USD, the all-digital version got a $50 hike over its older, fatter counterpart. Sony also led the charge to raise game prices to $70, and controversially raised PS+ prices by a not insignificant amount last year, making the console both pricey to own and operate.
New competitors
The gaming landscape has changed a lot in the last decade. Following its dark ages in the late aughts, PC gaming has grown steadily over the past decade and a half. Steam is now the biggest gaming platform in terms of active users. Many people who are fed up with Sony’s policies, or want a more hi-fi gaming experience, have moved to the platform. Sony even started putting their console exclusives on PC, showing that’s where the growth is.
Consoles have also seen increased competition from a surprise new source: handhelds. Once thought dead, handhelds have been undergoing a major renaissance in the last few years. I get the impression that nobody at Xbox or PlayStation thought the Switch would take off the way it did. Nintendo’s innovative hardware, which emphasized its ability to work as both a portable and TV top console, along with its low price and incredible library of games, quickly pushed it to the top of the charts. The Switch is now the third best selling video game system of all time, outselling every Sony console except the PS2.
PC based handhelds have also been an upstart market, really kicking off with Valve’s Steam Deck. We don’t know how many have sold, but it’s been reasonably popular. The system can outperform the Xbox One, offering a good-enough gaming experience without being tethered to a TV or desk. With the focus now on portability, consoles seem old hat. Even Sony has mulled over reviving their handheld line.
Conclusions
I think it’s fair to say that this console generation has been a complete wash. Between high prices, limited supply, and a lack of quality exclusive games, there are not many reasons for people to upgrade to the latest hardware. Even Sony said that they feel the PS5 is now entering its latter years, and are now focusing on PS6 development. So why bother when the platform holder themselves aren’t confident in it? The problem for Sony is that investors are getting antsy over the lack growth. Several online commentators have speculated this is behind the controversial PSN requirement for PC titles. It’s not quite the Vita all over again, but it feels like it some days.
