[MikeTheGreat]

I think that you're right, and in addition: there's a perception that the price is going up because there's a shortage that's outside of Sony's control, so if Sony jacks up the price I think Sony would be accused of profiteering / taking advantage of the situation.

"This company is price-gouging me due to temporary circumstances" definitely impacts brand perception, customer goodwill, etc

[abofh]

Typically the console makers make jack off of the console - often they lose money on the console. Profit is made off of licensing to game makers. Them jacking up console prices doesn't benefit them - they want as many consoles in as many hands as possible so that games can be sold to those users as possible.

If they make 50$ extra on the console, but the buyer buys no games, or buys a bad one and decides not to buy more on the console, that's a net loss right out, and an opportunity lost because the console didn't go to someone who would buy two, one of which they loved and caused them to buy three more.

It's the opposite of the iPhone situation - apple makes the majority of its money (on average) from the phone sale itself - people wait in line to give apple 30% off the top, even if they never buy an app or a song. So apple having a shortage slows down their profit this quarter, sony having a shortage slows down their loss this quarter and their profit 2023Q2.

It's short-term vs long term value of a customer, and the console makers are arguably making a better decision given the lifespan of a console.