Why is Sony willing to drop the price of the PS5 Digital Edition so low?

- Higher margins for digital games and services
- The user will never buy a disc (lower margin)

Sony earns around ~50% more when you buy a third party game digitally vs physically. ~30% more on 1st party.

The above is assuming a standard $60 game sale.

The two PS5 consoles are essentially the same internally, minus the disc drive on one. That disc drive only costs Sony around $20-$30.

Sony is willing to price $100 lower knowing they& #39;ll make it back later on digital games.

The other aspect is that you& #39;re essentially forced into buying games from Sony& #39;s PlayStation Store

You can& #39;t buy a used game from a third party. You have to use Sony& #39;s store directly

For Sony it makes sense. For a lot of people, saving $100 and going all digital will make sense