How the cost of living crisis and games industry turmoil could hurt Sony’s PlayStation 5 Pro release

In late November 2020, I was one of those people standing in line – or rather,
refreshing my browser – hoping to snag a PlayStation 5 during a restock. The
pandemic was in full swing, and with most of the world locked indoors, there weren’t many better things to do. The original PS5 promised to deliver true 4K gaming at very smooth frame rates – though a claim that it supported 8K gaming was later removed from the console’s packaging.

However, the PS5 got off to a slow start, owing primarily to game delays as a result of the pandemic. Additionally, gamers had to effectively choose between preset modes related to fidelity – high-quality visuals – and game performance within the in-game settings menus.

In November, gamers will no longer be faced with this dilemma, as Sony is set to release its “mid-generation refresh” console, the PlayStation 5 Pro. Its upgraded graphics processing unit (GPU) has more processing power and a faster memory than the basic PS5, allowing for up to 45% faster rendering of the graphics.

Advanced ray tracing – a technique to simulate the way light behaves in the real world – and AI technology called PlayStation Spectral Super Resolution are expected to enable higher-resolution visuals at higher frame rates. This could fulfil the basic PS5’s promise of 4K gaming at 60 frames per second.

However, all that power doesn’t come cheap. The £699 digital-only console scales to £798 with a £99 disc drive, which is required to play physical games. It is already selling out in some markets. There’s also a £25 vertical stand (which came bundled with the original PS5).

That’s a lot of money for a console that won’t have any exclusive titles. Every game you can play on the PS5 Pro will also run on the base PS5. Some even speculate that it still may not play forthcoming games at the highest possible fidelity.

That kind of price is even more of a shock when compared with the different world of 2020’s PS5 launch. Demand for games and consoles surged during the pandemic, but the economic landscape has drastically shifted in the past four years. Inflation is at an all-time high, and the cost of living has rocketed, leaving less disposable income for non-essential purchases, of which the PS5 Pro is a prime example.

The games industry has also seen waves of layoffs resulting from investment shortfalls, changing work patterns, and post-pandemic consumer behaviour. A further irony is that such layoffs prevent studios from having the time, budget, or labour to create the graphically intense, polished games that the PS5 Pro would take full advantage of.

Consoles have always been loss leaders –- products sold at lower profit margins to get buyers into a product ecosystem. The basic PS5 is barely fulfilling that role (most PlayStation gamers still play on the PS4). So it makes business sense for the PS5 Pro to merely reflect the economic realities of 2024, where the rising cost of materials, supply chain disruptions and a scramble for computing power due to AI’s enhanced workloads means that consoles are significantly more expensive to produce.

This time, instead of Sony absorbing the cost, they’ve passed it along to consumers – most of whom are deeply unhappy about it. YouTube reactions to the PS5 Pro reveal trailer have been overwhelmingly negative, sitting at a 3:1 dislike ratio on YouTube.

A solution without a problem?

Many are also wondering whether the PS5 Pro is solving any real problems. The current generation of consoles has been plagued by delays or underwhelming game releases, and many remakes and remasters. Sony is even porting games that were previously exclusive to consoles over to PCs in a bid to reach new audiences. This has left the PS5’s true “exclusives” library somewhat barren.

The PS5 Pro launch was similarly absent of any blockbuster titles making use of the new hardware. Astrobot, Sony’s most recent smash-hit and likely Christmas bestseller, certainly won’t be using all that horsepower.

Regardless, there’s little doubt that the PS5 Pro will sell out at launch. Sony is probably producing fewer units of the Pro model than they did for the basic PS5, creating an artificial scarcity that will drive demand. Those who can afford it and who want the best possible gaming experience will jump at the chance to own the most powerful PlayStation console ever made.

This all makes the PS5 Pro’s launch feel a little strange. The PS5 Pro’s technical improvements are genuinely impressive. It’s clearly aimed at the hardcore gamers who want the best possible experience, regardless of the cost –- Sony knows its audience here.

However, the PS5 Pro is not the console that will drive mass adoption nor convince PS4 players to finally upgrade. Instead, like all things “Pro” in the tech world, it’s simply another niche, high-end option.

And as much as I’m tempted by the promise of true 4K 60FPS console gaming, I can’t
help but feel that this mid-generation upgrade is arriving at a time when the games
industry has myriad more important things to address than a shiny new toy.