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Sony's PlayStation 5 is one of the most expensive gaming consoles in history.
The PlayStation 5 is one of the most expensive gaming consoles we’ve seen in the last decade.
Sony’s Super consoles were also reportedly out of stock almost everywhere online for the most part of 2022.
If customers did manage to find a PS5 for sale online, it was going to be marked up by resellers.
According to reports, there have even been PlayStation 5s that have sold for well over $1,000 (N735,000).
However, in Nigeria, it wasn’t exactly the case, with the rush for PS5s far from minimal since its release.
The lingering problem however, was the staggering inflation of the PS5 since its release.
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Currently, the average price of the PlayStation in Nigeria is estimated to be between N420,000 and N520,000.
Let’s take a look at what exactly could be driving the PS5 prices so high.
Supply and Demand
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When supply is low and demand is high, the price of goods goes up accordingly.
Although, reports have claimed that Sony saw out 2022 with an increased sale of the PS5s due to availability, there still isn’t nearly enough PlayStation 5s to go around globally.
What this means is that the prices of available units are going to be much higher than they normally would be.
Prices are always at their highest during the period when it is launched.
This is partly because companies know that early adopters are more willing to withstand higher prices early on, but it also has to do with how quickly it tends to go out of stock.
Sony actually planned for fewer sales
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One of the reasons the supply of the PlayStation 5 console has been so low is that Sony delibrately planned for this.
Rather than launching the PS5 en masse, Sony aimed for a much more restrained launch.
Probably because they thought about the profit - which is primarily the first thing to consider.
The price of a more advanced tech is usually higher than the last generation’s models.
Another reason why Sony made these consoles so expensive is how gaming habits have changed in the last year or so.
In Nigeria for instance, despite the decent level of gaming habits among the younger generation, customers have never have to go above and beyond to demand for new consoles in large quantity - which also brings the question, how many Nigerians can actually afford video gaming consoles, not to talk of the PlayStation 5?
Covid Pandemic
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The outbreak of the pandemic in 2020 opened opportunities for resellers to actually increase prices of the consoles.
On a global scale, Covid has caused a lot of economic uncertainty and unemployment.
Individuals who formerly made their money reselling clothing and other items have reportedly turned to video game consoles as a way to keep making money.
This has naturally shifted how much these video game consoles are going to cost not just for now, but for years to come.
And with the level of scalpers around, it won’t be a surprise to see fresh releases immediately going out of stock with the former buying in large quantities before quickly re-selling on third-party sites at two or three-times the initial value.
High Cost of Production
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One of the reasons the PlayStation 5 is so expensive is that the cost of materials has gone up dramatically.
In today’s world, devices are dependent on the same raw materials that used to be reserved for computing technology.
All of those processors, rare-earth minerals, and other necessary components are now being distributed across a wide range of industries.
Your smart refrigerator probably now uses some of the same technology that used to be reserved for computers and gaming consoles.
This means that the companies that sell these materials might start to charge more because the demand has gone up.
Ultimately, the bottom-line cost for Sony developing their new console has increased.
Real-World Cost of the PlayStation 5
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The truth of the matter is that, in order to get the most out of your PS5 console, you’re going to need a few extra accessories which will drive up the real cost of what individuals will spend in totality on a PlayStation 5.
There are some pretty obvious costs that are in some ways ridiculous, from the prices of game titles to extra controllers, headsets, and other accessories to enhance your gaming experience.
The PlayStation simply put is not an affordable gadget in Nigeria, largely considering the current economic state.
It’s a classy and one of the most sought-after gaming consoles in the country, but even the sellers in the country know this fact and hence, may still hike prices regardless of who can afford it.
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