| ▲ | unpopularopp 5 hours ago |
| So McDonald's has a monopoly on the Big Mac? Because you can go to Burger King (Xbox) or KFC (Switch) or Sonic (PC) as well but this group is arguing they want to have a Big Mac but not from McDonald's? Or actually McDonald's doesn't have a monopoly because you can technically buy a Big Mac from Uber Eats or Doordash? |
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| ▲ | zamadatix 3 hours ago | parent | next [-] |
| This same kind of note seems to come up repeatedly in threads like this with no regard to a similar question ever having been thought up or discussed every other time the topic comes up. Different brands of course, but I'm not sure I've actually seen a net new discussion of this point here in years. The usual answer is: If Sony raises the price of games in it's store, Sony denies 3rd party stores, and Sony removes the physical media option, then there are a significant number of people no longer able to consider open market dynamics in picking which low dollar game to buy next as they have massive (in comparison) investments in the platform. McDonald's can certainly raise the price of a Big Mac, and McDonald's can certainly limit where it's sold to 1st party locations, but they don't really have the ability to bend the market to pay more than they'd like to for Big Macs because there is no platform investment. Like you say, people can go to Burger King and get a burger. It just doesn't cost hundreds of dollars to do so, making a few dollar increase have true market weight. You can also order the 3rd party burger from a number of places on those apps because there is no restriction that the person sold to is the only one entitled to a burger. The part that leaves people debating is more "exactly how much interference is problematic rather than good business" than "what's the difference between A and B and doesn't that apply to every other situation too". |
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| ▲ | ekianjo 2 hours ago | parent [-] | | > then there are a significant number of people no longer able to consider open market dynamics in picking which low dollar game to buy next as they have massive (in comparison) investments in the platform. Nothing prevents them from selling their Sony console and moving on | | |
| ▲ | zamadatix an hour ago | parent [-] | | How can they sell their PlayStation library with it? Sony'll ban accounts that even try and Sony isn't allowing physical libraries be built anymore. Replacing a platform starts to pick up a lot of extra baggage once the company behind it controls more than the platform itself, even if you count switching the literal base platforms like that as frictionless. Ignoring the above for a moment, this is exactly the kind of "exactly how much interference is problematic rather than good business" debate I was referring to. Obviously it's harder to sell a PlayStation and get another system than it is to eat a different burger that day. And obviously this is easier than if the burger joints in the region collude to raise prices on Saturdays but how impactful is it? Well, that's precisely the debate. Most side long before "it'd be impossible for an individual to do anything at all about it" but even that isn't universally held. |
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| ▲ | dabbz 5 hours ago | parent | prev | next [-] |
| Your analogy falls apart somewhere for me but I can't pinpoint the exact correction to make your analogy work for me. Either way I agree. If they don't like only being able to buy digital PS games via Sony's platform, go to one where they can. That's not the fight I'd personally focus on. I'd personally focus on them revoking digital access after you've "purchased it". Then again, I don't have a game console and I don't "buy" digital media. I either rent via streaming subscription or own the physical. |
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| ▲ | stingraycharles 4 hours ago | parent | next [-] | | It’s that there is a large upfront cost (buying a PlayStation) which isn’t in the analogy. Additionally, many of the games are already on different platforms (PC), just not any other consoles. I think the biggest thing is that Sony doesn’t actually make the games (they don’t have the kitchen nor the cooks), they just sell it. So a more apt comparison would be a grocery store, I think. | | |
| ▲ | wilg 4 hours ago | parent [-] | | The large upfront cost is lower than it would be because its subsidized by buying the games for it! Sony does make the games, they have many excellent first party studios! What are you talking about! | | |
| ▲ | stingraycharles 4 hours ago | parent | next [-] | | They make games, they just don’t make all the games. Similar like a grocery store having their own brands in the shelves, you don’t expect to be able to buy these at other shops. And yes the upfront costs being subsidized is exactly the point. | | |
| ▲ | MBCook 4 hours ago | parent | next [-] | | Not quite. Grocery stores make common products and clones. Sony’s 1st party stuff is (often) exceptional. It’s the reason an Xbox or PC isn’t a complete replacement. | |
| ▲ | wilg an hour ago | parent | prev [-] | | I can only respond to what you actually said which was "Sony doesn’t actually make the games" and "they don’t have the kitchen nor the cooks". |
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| ▲ | braiamp 4 hours ago | parent | prev | next [-] | | The PS5 was breaking even less than 6 months after its release. They don't subsidize anything. BTW, Nintendo also don't subsidize it. The BOM of the Switch 1 and 2 is lower than the total price including the margins for retailers! | | |
| ▲ | wilg an hour ago | parent [-] | | This is a conversation about Sony, not Nintendo. As far as I can tell from current data, Sony is still subsidizing PlayStation consoles overall. | | |
| ▲ | bryanlarsen 21 minutes ago | parent [-] | | Sony stopped subsidizing the PS5 8 months after launch. https://www.pcmag.com/news/sony-says-499-ps5-no-longer-sells... | | |
| ▲ | wilg 9 minutes ago | parent [-] | | I can see why you might think that, but that is not what this article claims or what Sony said. The CFO said this in 2021: “But the profitability of PS5 in -- there was this view of reaching breakeven point in June, but PS5 breakeven point for standard edition, more correctly on standard edition, that's how we explain the situation. And it's been progressing according to the plan. Overall, hardware profitability and peripherals hardware profitability, including peripherals, as we have been saying, is proceeding smoothly.” And PCMag is inferring this means ONLY the $499 edition of the console which they previously suggested could become profitable later. It doesn't mean every edition of the PS5, and things have changed since 2021. And Sony said it was having losses on consoles as recently as 2024. |
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| ▲ | ytoawwhra92 4 hours ago | parent | prev [-] | | > The large upfront cost is lower than it would be because its subsidized by buying the games for it! This isn't true anymore. | | |
| ▲ | wilg an hour ago | parent [-] | | As far as I can tell, despite Sony saying they would like the consoles to be profitable, they are still subsidized as of right now in aggregate. Perhaps some models are more profitable than others. |
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| ▲ | cwmoore 4 hours ago | parent | prev | next [-] | | I can imagine that BK’s “have it your way” branding does enable the occasional off-menu Big Mac style burger sandwich transaction. | |
| ▲ | 4 hours ago | parent | prev [-] | | [deleted] |
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| ▲ | braiamp 3 hours ago | parent | prev | next [-] |
| If McDonalds were the only restaurant allowed to sell food within a particular market, and you couldn't buy food there from anyone else, then yes, your analogy would work. Otherwise it doesn't. A closer analogy would be Apple or the old company store model in company towns. In fact, why didn't you go with those? |
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| ▲ | Barrin92 4 hours ago | parent | prev | next [-] |
| >So McDonald's has a monopoly on the Big Mac? yes, that's called a differentiated product in economics and it confers market power the same way any other monopoly does, Sony controls the Playstation ecosystem, Apple its ecosystem and it gives them leverage over the consumer, those products are not commodities. That's why pharmaceuticals, patented medical devices or cable and broadband providers are regulated, see net neutrality legislation. Which exists exactly to commoditize information access in a market that's dominated by differentiated providers so they can't exercise their gatekeeping power to drive prices between you and online services up. |
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| ▲ | kmeisthax 4 hours ago | parent | prev [-] |
| No, they're arguing that you shouldn't have to make your home kitchen a McDonalds franchise in order to eat Big Macs in it. |