Why Japan Gets Exclusive Console Discounts, But Other Countries Don't

The launch of discounted Japan-only versions of the PS5 and Switch has sparked debate about why similar pricing strategies aren't being applied in other countries. With the global economy facing unprecedented challenges, including soaring inflation and stagnant wages, consumers everywhere are feeling the pinch. Japan's unique economic situation, including a severely weakened yen, has forced Nintendo and Sony to rethink their pricing approach in the country. However, the same logic that justifies these discounts in Japan could be applied to other markets, where consumers are also struggling with affordability. The traditional 'razors and razorblades' business model, where consoles are sold at a loss to generate revenue from software sales, seems to be working in Japan, with both companies reportedly selling their consoles at a discount to the cost of manufacture. This approach has led to a significant increase in sales, with the PS5 quadrupling its sales in Japan in the first week after the launch of the discounted version. The question remains, why aren't Nintendo and Sony applying a similar strategy in other countries, where the affordability crisis is just as real? One reason may be the instability in the cost of key components, such as high-speed RAM and SSD chips, which has driven up prices and made it difficult for manufacturers to commit to aggressive pricing strategies. However, this doesn't entirely justify the lack of action in other markets, where consumers are also feeling the effects of price inflation. The role of platform holders in the industry has evolved over time, from being the driving force behind market growth to focusing more on their own financial interests. It's time for Nintendo and Sony to reconsider their approach and take a more proactive role in building and growing their markets worldwide.