the one thing in the video game industry that will never cease to amaze me is how a company can take full and complete advantage of every single customer in this industry and the more ridiculous part about all of this isn't the fact that this happens consistently it's that actual people will go around and defend these multi-billion trillion dollar corporations saying how it's oh they they have to do this companies have to raise prices you guys it's It's just part of the business you know that's what happens well it turns out we're going to be seeing prices rise again because not only has Nintendo increased the cost of their actual consoles and games not only has Microsoft followed suit but it turns out your boys over at PlayStation are thinking about doing the exact same thing you see it turns out that PlayStation had an investor meeting recently and a lot of things were discussed in fact one of those things that was discussed is that they are considering on passing on the price of tariffs to consumers in order to mitigate the actual impact on the bottom line for PlayStation sony is also open to manufacturing consoles in the United States because of this now let's really think about this directly okay instead of actually absorbing the cost of manufacturing for their consoles which are in fact 5 years old at the time of this recording which means these consoles should have already been $3.99 or $2.99 at the very least it turns out this is the actual generation of complete stupidity where gaming companies are in fact again taking advantage of you directly every single time because instead of dropping the price of consoles PlayStation has already increased the price of their consoles to other regions as well not only have they done it with the consoles but also with their PlayStation Plus online service subscription psn PS+ same difference really doesn't matter the thing is though that these companies are consistently going around and basically boiling the frog seeing how much it's going to take for you to go ahead and say no that's too much to then drop the prices directly now listen I'm not a political channel i don't do a politics at but there have been rumors going around that the actual tariffs may in fact be decreasing over time we don't know what's going to happen at the time of this recording nor do I honestly care the main issue is these companies should have already had manufacturing down to a point where these consoles should have already been at the 299 or 399 mark 5 years into the generation this is the first time we are seeing console prices go up 5 years in making it a bad decision to wait until later to buy a console when it actually has a library well we know that none of these consoles have an actual library is from what we've seen the last couple of years but still and the thing is there's more information to that as well because Tom Warren from The Verge wrote an article and here's some more information on that sony just announced its financial forecast for the next year and it's expecting to be impacted by tariffs to the tune of a hundred billion yen about $680 million to compensate the company says it's considering options including moving manufacturing to the US and increasing prices for consumers let's talk about things to compensate what they mean by that is you're going to pay more money period hands down point blank and honestly even if these tariffs do in fact go away at some point I don't exactly know when my guess is that you're never going to see consoles drop below the $499 mark ever again they're going to be $600 to $700 moving forward and at that price range you're basically tickling the backside of PC gaming at that space why would you spend $7 to $800 on a console when you can spend $200 more and get yourself a great PC instead star Forge Systems link in the pin comment down below just a suggestion it's basically spending all the money having all the problems and zero benefits paying for online on top of it paying for more expensive games and these companies are raking you over the coals and they'll say anything they possibly can everything from "Oh the cost of development is too high oh the manufacturing costs oh the tariffs in reality though none of that is my concern it should always be about you providing me a better product for a cheaper price because if you can give me a better product for a lower price more than likely I will continue to buy products from you but hey that's not how things work apparently I live in Bizarro World the article continues by saying "Speaking to investors during the company's earnings call Sony CFO Lynn Tao confirmed that the company is considering passing on the price tariffs to the consumers in order to mitigate the impact on its bottom line tao didn't mention the PS5 by name though and it's possible that Sony could try to protect pricing on its console through increases elsewhere in its electronic business sony has already increased the price of the PS5 this year but only in the UK Europe Australia and New Zealand and of course now we have the actual CFO signaling to investors hey we're thinking about passing on the actual cost of tariffs to the consumers and do you think they're going to say no you think they're going to be like oh guys listen you know we're selling what 77 million consoles you know we're going to keep selling those things right jack up the price we got to get our stock price higher we got to get our returns better everybody else that's what they're going to say cuz hell if Microsoft did it and they're in last place you sure know Sod's going to do it and that's the crazy thing about all of this oh they're going to protect the PS5 look they could do the funniest thing ever and leave Microsoft out to dry and not raise the cost of the console due to tariffs that would be the funniest thing of all time personally but I've got a feeling corpos are in fact going to corpo and I also got a feeling if the CFO is saying this yeah they've already raised the cost of the console in other regions I feel it's going to be hitting us just as hard as Microsoft did so personally I would get ready for that over the 12 months ending in March Sony shipped 18.5 million PS5 consoles down slightly from the 20.8 million the year before bringing its total lifetime shipments to 77 million sony still manufactures the majority of its PS5's hardware in China and so its gaming business is especially at risk right now even after the 90-day pause in production on rates announced this week the 30% tariff on imports into the US from China is substantially higher than the 10% rate levied on other countries and game consoles were not included in the exemptions for other select electronics microsoft has already raised the price of its Xbox consoles up to $100 though Nintendo has so far elected to keep the Switch 2 pricing the same ahead of its next month launch so yeah that's pretty much how it's going to be depending upon what Sony decides to do and personally I think they're going to go ahead and say "Hey we're going to increase the price." So get ready for that ladies and gentlemen it turns out that Destin was able to actually catch a portion of the actual talk and here is what she actually said regarding the tariff uh let me answer to the tariff question uh 100 billion yen impact have been uh it's uh assuming the official tariff rate which has been announced in hardware uh hardware business is included in this uh in terms of our portfolio GNS games and also ATNS and INSS uh semiconductors so uh those three segments uh we are actually uh incorporating on par basis uh from these three businesses in terms of the tariff uh we are not just simply calculating the simple tariff to come up with 100 billion yen but uh thinking about the currently available information and also looking at the market trend uh we may test on to the price and also shipment allocation so we are taking a different measures in managing uh to come up to the 100 billion yen impact that's what we are thinking thank you very much did you hear those magic words i did hardware and semiconductors baby yeah anyone thinking that this isn't going to get passed on to the customer or the fact that PlayStation one in fact increase those prices you've got to be in dulu land cuz truly they are literally signaling to all of their shareholders the CFO is saying this by the way this isn't some random person off the street this is the chief financial officer regarding the tariffs it's going to be impacting hardware and semiconductors so again they could do the funniest thing ever and keep the prices the same or by my understanding and what corpos normally do they're going to go ahead and do the worst thing possible and increase the prices on you the consumer and customer my guess is the same as Xbox $80 to $100 so in reality you could be looking at the possibility of a PlayStation 5 Pro costing you $900 redu in order to go ahead and have that thing play physical media and use that directly not $6.99 like it was originally announced nope i can't I can't imagine a console costing $900 in today's day and age again if you are in that space right now why would you spend $900 for a console to then go ahead and pay for online to then deal with all the other problems that console companies and manufacturers put into that actual piece of plastic you don't have exclusives what's the difference but you see the information of everything doesn't stop there because this is going to be the pivotal turning point of the gaming industry hazard Gaming also put some more information on Twitter saying this playstation fiscal year 2024 Q4 financials ps5 units sold 2.8 million units lifetime PS5 units 77.7 digital download ratio is 80% i want you to think about that and realize what happened a couple of days ago when I talked about game key cards and games being published onto a disc that have just a small megabyte download on there for you to download the game you don't own your games physically when 80% of all the users on PlayStation are literally buying games digitally again which is why you also have your PS5 Pro having the disc drive sold separately for an extra $80 as well and monthly active users at 124 million so yeah we're going to continue seeing the downward spiral of the gaming industry you will live in a pod you will own nothing and you will be happy about it because it's 80% of all games are being played digitally or downloaded digitally or purchased in that digital format you're going to be seeing less and less reasons for these companies to then go ahead and say "Hey we're going to make physical discs we're going to go ahead and put games on the discs." And what we're going to do is you're going to have ownership of your product you're not going to own anything that's the bigger concern about this on top of that for me specifically not only are they going to increase the price of consoles consistently and consecutively year overyear gen over gen because people are accepting of it they're also increasing the price of games as well and you're not going to own it physically either i don't understand how everybody calls me the crazy one as I'm the one yelling at everybody telling you guys "Look hello McFly this is happening." and no one seems to believe me or worst case they're accepting of it every time a fanboy goes on Twitter saying the dumbest thing possible like "You should have already bought your PlayStation 5." I kid you not that was actually said by somebody because people were expecting "Hey five years into a generation where normally genens are 5 years long not 10 we're going to have at least some sort of price decrease." No we've had price increases service price increases game price increases in the middle of a generation this gen and many others are going to last a lot longer than 5 years specifically and the worst part is this does impact me directly because as semiconductors get an increase in actual tariffs and so do many other places the fact that these companies like Xbox and PlayStation use AMD for their SOC's means that my GPUs could increase in price exponentially yearover-year consistently rather than getting a 35 to 40% increase in performance for the same price that I paid last generation I don't have to pay 35% more for the GPU to get 35% more performance so then there's no point to upgrade if there's no actual upgrade and the crazier part about this is we are seeing PlayStation do exactly what everyone else has been saying they're going to do the entire time as fanboys walk around and the only two games they ever play are console sales and Twitter it turns out that Sony doesn't care about that anymore console sales that's that was so p that's last year twitter that's that's a turtle by the way that's a good doom joke for you the thing is though the Sony CFO has literally signaled to their shareholders directly to everyone because everybody likes to talk about CFOs apparently that's how much fun we're having around here that their previous focus was on sellin units but the focus now is on engagement and monthly active users which drive profitability that's all they care about is profit and everyone talking about Twitter how how many consoles were sold how many devices were coming out now it's going to be all about monthly active users boy sounds exactly like the other people everybody was making fun of the entire time about a specific plastic box that they don't like but they'll sure as [ __ ] buy the games for at full price day one pre-order by the way everybody got really mad at that tweet and it was really funny to watch the bait get cast but here's the thing though this could also signal to other people like "Hey um if MAUs are important then I bet your bottom dollar at some point in the future we're going to have Day and Date games hit PC whether it's through an actual PlayStation storefront on PC directly which would also be funny as but directly onto the Steam platform and the Epic Game Store because again monthly active users are driving profitability it's almost like everyone was telling everybody the exact same thing but no one wanted to actually listen because you were too busy playing the game of console sales rather than actually playing video games and if you don't believe me as to why things are going to be happening this way and why I see everyone becoming a multi-party platform publisher that was a big mouthful by the way no pause it turns out that Sony's latest financials are also out and VGC is reporting that in five years into its life the PS5 sales remain neck andneck with its predecessor of the PlayStation 4 people are going to walk around and be like "Haha that means 100 million sold baby playstation wins again." No what that means is the line is not going up that means you are not beating your predecessor in terms of what you sold last generation which means there are certain people talking about the actual cap of the console space and what you can actually sell into with the console space meaning that if these companies want to make more money there's going to be two ways to go about it either one increase the price of games exponentially and the price of your consoles exponentially to make more money out of the same 100 millie or two you put your game on every single platform and become a full third-party publisher but hey nobody wants to have that conversation now do they it's almost like console sales have hit a peak and the craziest part about this is this also matches with what happened during 2020 to 2023 so when everybody was stuck inside and everybody had a reason to buy a console we saw a spike as you can see right there on the graph but now things have changed we're not back in that time are we and you can see things level off as well directly and start to even line up with what the previous console was in fact doing so that tells me one of two specific things things are going to be a changing over at PlayStation and all the fanboys screeching crying himming and hawing [ __ ] pissing and coming themselves talking about console sales well baby don't worry cuz when your games at day and date on my PC I'll be here to make fun of you when you guys crash out about a console sales I'll be here to make fun of you and the thing is this is going to be better for everybody because the more people that can play a video game the better but the problem is people are still too caught up in the year 2000 to understand what is actually happening in the gaming industry it has hit its cap it has seen the peak and the fact that investors saw that peak and they want to surpass it is going to do one of two things it's going to force the hand of these companies that you la after and you applaud so often about sales and things like that into counting monthly active users and trying to pinch you out of every possible red scent you have i've warned you for years you refuse to listen and now you reap what you sew but hey that's just me right that's just me but you know what let me know what you guys think in the comments section down below are you going to be buying yourself a PS5 Pro at $900 redu and if you're going to spend that amount of money you might as well get yourself a Star Forge PC link in the pin comment down below i'm just saying hey you don't have to pay for online you get all your games and a way better experience overall just a thought just a thought but if you want to see more of this kind of content subscribe to the channel we're on our way to 83,000 subs we are doing more gaming news PC port reviews Steam Deck videos fanboy content gaming hot takes like this and live streams every Saturday night 8:45 p.m eastern come on down hang out trust me you won't be disappointed if you want Discord access or most during live streams become a YouTube member it's as low as a dollar if you don't want to spend the buck like I said before Saturday night 8:45 p.m eastern is a live stream everybody gifts members and it's honestly incredibly awesome thank you guys so much for watching though hope you have a great one and I'll see you guys next time peace