Who Exactly Is the PS5 Pro Intended For?

Sony made waves in the gaming industry this week by officially unveiling the PlayStation 5 Pro, a disc-free, more powerful version of the PS5 with enhanced specs. However, the main focus online has been the console’s price: $700 USD. Many are puzzled, asking: who exactly is this for?

According to Mat Piscatella, an analyst from Circana, the PS5 Pro is aimed at “price-insensitive PlayStation ultra enthusiasts.” Speaking to GameSpot, Piscatella explained that for this audience, the steep price is “not a significant barrier,” and the PS5 Pro market represents only a "very small portion" of the overall PlayStation fanbase.

Potential buyers are likely those who always want the latest PlayStation tech—similar to people who always buy the newest iPhone. Piscatella also noted that many paid over $1,000 for a PS5 at launch through third-party sellers due to shortages.

Furthermore, Piscatella highlighted data from Circana's Checkout service showing that a significant percentage of PS5 buyers in the US are from high-income households. He reported that 49% of PS5 purchasers from April to July 2024 had household incomes over $100,000 annually, compared to 43% for Xbox Series buyers and 40% for Switch buyers.

Though Piscatella acknowledged that $700 is “expensive,” he reiterated that the PS5 Pro isn’t designed for the average PlayStation user. While he didn’t offer a specific sales prediction for launch, he estimated that the PS5 Pro could account for 15-20% of total PS5 sales in its first two months, declining in later months.

Reflecting on the PS4 Pro, which made up about 13% of lifetime PS4 unit sales and 15% of lifetime dollar sales, Piscatella predicted the PS5 Pro would end its generation between 9-15% of lifetime PS5 units sold, with a higher percentage in revenue due to its price.

Piscatella noted that although the price sparked mixed reactions online, today’s gaming market shows that consumers are willing to pay more. He pointed out that $249 Collector’s Editions, early access for $99.99, and premium gamepads and headsets have become commonplace.

He remarked that the era of one version of a game, console, or controller is gone, as companies seek to maximize profits from both price-sensitive and price-insensitive consumers. "It's a painful transition for many console fans, but it’s where the market is headed, and this trend won’t slow down anytime soon," Piscatella said.

Piers Harding-Rolls of Ampere Analysis echoed Piscatella’s insights in an open letter, adding that the PS5 Pro targets the “enthusiast” audience, as well as those yet to purchase a PS5 but now want the top-tier model.

Harding-Rolls acknowledged concerns about the high price, noting that the gap between the PS5 and PS5 Pro is larger than that between the PS4 and PS4 Pro. He attributed this to Sony’s strategy to maintain its margins amid supply chain inflation and the lack of a direct competitor to its mid-cycle upgrade, unlike in the PS4 era when Microsoft was preparing the Xbox One X.

Additionally, Harding-Rolls forecasted that Grand Theft Auto VI’s release in 2025 could prompt a surge in PS5 Pro upgrades, predicting 1.3 million PS5 Pro sales during the launch window, lower than the 1.7 million PS4 Pros sold in 2016.

By 2029, Harding-Rolls estimated the PS5 Pro could reach 13 million units sold, putting it on par with the lifetime sales of the Wii U.

In tandem with the PS5 Pro announcement, Sony also raised the price of DualSense controllers by $5. This follows a report revealing that PS5 hardware sales dropped 27% year-over-year for the first fiscal quarter of 2024, from April to June.

While console prices typically decrease over time as component costs fall, the pandemic and other factors have halted this trend. PS5 prices have risen in Japan and other regions, though not in the US, with Sony citing global economic conditions for the hikes. Microsoft has also raised prices for Xbox and Game Pass, leaving Nintendo as the only major console maker to keep prices steady this generation.