PS4 owners aren’t upgrading, because why would they

Half of PS4 owners have not upgraded to the PlayStation 5. Games journalists are perplexed by this, as they are about a great many things. Why aren’t people getting excited to consume next product? Well, as cited by IGN, Mat Piscatella, Executive Director at Circana, noted the most popular games right now are all available on last generation consoles. This certainly is true, but that doesn’t really 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 actually has to make the hardware. Manufacturers, notably chipmaker TSMC, as well as those in mainland China, were having trouble due to supply chain issues and the obvious impact to the labour force. Which meant there were not 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.

Initially, Sony had intended to implement an invitation system, ensuring that only existing and active PSN account holders would be able to reserve a console. Which was actually 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 actually buy one, at least from a legit retailer or for anything close to MSRP. This isn’t unusual for the launch of a hot ticket item, but the shortages dragged on for over two years. It wasn’t until late 2022 when PS5s started becoming widely available at retail. By that point, a lot of that crucial crowd of early adopters had simply got tired of waiting and lost interest.

It has no games

Probably the most common complaint I hear online is that the PS5 has no games. That accusation has been thrown at a lot of consoles over the years, but with this generation in particular, it’s actually pretty accurate. The PS5 has been out for nearly four years now, which is usually the mid-point for a console’s life. Out of all first party released since launch, I counted 9 console exclusive titles, not including remasters, across all regions. The vast majority of its biggest titles have seen cross generational releases on the PS4. Meanwhile Sony had 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 Stellar Blade, being a AA title, was in development since 2019. Hey, it’s a lot of work to get those jiggle physics just right. But with cycles tying up studios for that long, it ultimately means fewer games released on the platform.

I do applaud Sony’s continued support of the PS4. It’s an excellent system that still holds up very 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 when it comes to what we can do with the hardware. If your current console can already play most of the latest games, and you’re happy with the performance, there’s really 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 by myself and many other gamers. Sony Interactive Entertainment, now being a California company, has adopted a California worldview. Which means a lot of recent exclusives, such as Spider-Man 2, have been pushing The Message™. This is alongside censorship of East Asian titles, plus the overall decline in quality and lack of creativity for AAA in general. I think this has certainly hurt sales somewhat, as many are getting burnt out on this nonsense. Lack of variety also doesn’t help. So, if the exclusives it does have are attracting controversy and/or apathy among gamers, that also significantly hampers upgrade pressure.

The PS5 is expensive

The PS5 is an expensive boi. Is it Sony’s most expensive 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 even the PS3.

See, a lot of people lost their jobs during pandemic downsizing, and a lot of those full time jobs just never came back. 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. When we live in a world where a lot of people are now suddenly 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 receive 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 get refined. In this case, 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 USD, as well as 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 seen steady growth over the past decade and a half. I think large in part driven by the popularity of streamers. Steam is now the biggest gaming platform by far in terms of number of active users. And a lot of people who are fed up with Sony’s policies, or just want a more hi-fi gaming experience, have moved to the platform. Sony themselves have even started putting their console exclusives on PC, showing that’s where the growth is.

Consoles in general 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 really thought the Switch was going to 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 at least been reasonably popular. The system is capable of outperforming the Xbox One, offering a good-enough gaming experience without being tethered to a TV or desk. With the focus now on portability, consoles kind of 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’s not that much reason for people to upgrade to the latest hardware. Even Sony themselves said that they feel the PS5 is now entering its latter years, and are now focusing on PS6 development. So why even bother when the platform holder themselves aren’t confident in it? The problem for Sony is that investors are starting to get antsy over the lack growth. Which is what several online commentators have speculated is behind the controversial PSN requirement for PC titles. It’s not quite the Vita all over again, but it sure feels like it some days.