Comment by tancop

There is no hardware subsidy in the traditional sense. The last time Sony was selling consoles at a loss was the fat PS3 and they learned their lesson from all the compute clusters. Every PS5 is sold at a profit.

The only way they can lose money is if their existing users stop buying games and that's not happening yet. Maybe when vibe coded community servers for online games get better and everyone jailbreaks their console because they don't have to worry about getting banned.

But even with that every unit sold is a net positive for them because they make money off the sale, and if they run out they can use it to justify higher prices.