Sony CAN'T Kill the PS5

TL;DR

The RAM crisis has forced PS5 prices to $650 and tanked sales, making the PS5 Sony's best budget-tier strategy even after PS6 launches.

Key Points

• 1.The RAM crisis is the root cause of console price hikes across the industry. AI data centers are consuming global memory and storage supply, causing Sony and Microsoft to raise PS5 and Series X prices by $150, while Nintendo raised Switch 2 by $50 — with 2027 expected to be worse, not better.
• 2.PS5 had its worst quarter ever, down 46% year-over-year. It now costs $650 ($200 more than the 2020 Digital launch price), has fallen 3.3 million units behind where PS4 was at the same lifecycle point, and Sony took a $565 million Bungie write-down with stock down 20% YTD.
• 3.Sony's CFO publicly signaled PS6 timing is uncertain due to the chip crisis. Rather than deflecting with 'no comment on future hardware,' Sony told investors the RAM environment is forcing them to rethink next-gen launch timing and pricing strategy entirely.
• 4.A rumored PS6 Lite — essentially a screenless portable PS6 — is Sony's planned budget competitor to the Xbox Series S. The creator argues Sony's better move is to officially keep the PS5 as a supported, current-gen budget tier alongside the PS6 for four to five years post-launch.
• 5.Nintendo raised Switch 2 to $500 from September 1st despite previously resisting hikes, forecasting only 16.5 million units sold versus analyst estimates of 20 million-plus. Unlike Sony and Microsoft, Nintendo traditionally sells hardware at a small profit but is currently selling Switch 2 at a significant loss.