The former Blizzard boss says the $700 PS5 Pro is actually more of a $350 upgrade because it’s aimed at people who might trade in their PS5…

Former Blizzard president Mike Ybarra expressed his thoughts on the controversial $700 price tag of the recently introduced PS5 Pro.

Yes, the PS5 Pro costs a hefty seven hundred dollars. But for this respectable price, we get a much more powerful GPU capable of 45% faster rendering and significantly improved ray tracing. There’s also the new PlayStation Spectral Super Resolution (or PSSR) technology, which provides AI-assisted upscaling using machine learning for a sharper image.

Either way, $700 is a lot of money in the best of times. Even more so in these economically uncertain times. In a tweet, Ybarra said there is a way to “think of this a bit differently,” arguing that the updated console is aimed at “existing users upgrading” and that Sony’s model takes existing trade-in and resale values ​​into account. , to lower the barrier to entry.

“The model is: existing PS5 owners can trade in their PS5 at places like GameStop for $350 in credit (today).”

“Apply that to the $699 price point, and now the upgrade cost is $350,” Ybarra said. “While still not easy, much easier to stomach for some. This is the fundamental model they use. It won’t fit for everyone, but it’s all part of the larger go to market plan.”

It’s worth noting that, adjusted for inflation, the PS5 Pro is cheaper than the original PS3, which launched in 2006 for $600. However, excluding this one example, it is the most expensive PlayStation ever, even adjusted for inflation.

In response to his original tweet, Ybarra rightly pointed out that “no one has to buy” the new console and offered that for those who can afford the luxury, “it’s nice to say you have the fastest and most powerful console on the market.”

Even though this statement is about as far-fetched as you can expect from a CEO, it’s technically true. For example, GameStop in Phoenix, Arizona, offers “up to” $385 for the plain PS5 with a disc drive (eBay listings are around $350). That means if you were to trade in your PS5 for a PS5 Pro today, you’d pay somewhere around $315 for the upgrade, though Ybarra’s analysis ignores the fact that the PS5 Pro doesn’t include the disc drive, which would cost $80 if purchased separately, or the vertical stand, which costs $30.

Source: X

Think of this a bit differently. Pro models, or any in-generation upgrade, is about existing users upgrading. So when teams evaluate the cost – they don't want to lose money on each console as that puts pressure on other parts of the business. And they think about how they can…

— Mike Ybarra (@Qwik) September 10, 2024