Latest / Pricing Power Podcast with Fexingo: How Businesses Set Prices, Raise Margins, and Win Customers
How Video Game Console Pricing Creates a Winner-Takes-All Market
This episode of Pricing Power dives into the economics behind video game console pricing, using Sony's PlayStation 5 as the central case. Lucas and Luna break down the classic razor-and-blades model adapted for hardware, explaining how Sony priced the PS5 at a loss in 2020 to capture market share, then recovered margins through software licensing, accessories, and PlayStation Plus subscriptions. They explore the strategic decision to launch a Digital Edition at $399 versus the disc-based model at $499, and how Microsoft's Xbox Series S at $299 changed the pricing calculus. The…
The skinny
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