PlayStation and Xbox showdown in South Africa

Makro and Game customers prefer PlayStation over Xbox, according to the retailers’ parent company, Massmart.

Following the announcement of the PlayStation 5 Pro’s pricing in South Africa and the news that Microsoft has no plans to launch a competitor, MyBroadband asked several retailers about the popularity of the gaming platforms.

“PlayStation is most popular with our customers. This has been a consistent trend over the years,” Massmart said.

MyBroadband also asked for feedback from JD Group, which owns Incredible and HiFi Corp, and Takealot. Takealot hadn’t answered our questions by publication, and JD Group declined to comment.

While Massmart’s customers prefer PlayStation over Xbox, data from StatCounter GlobalStats tells a different story. It shows that Xbox holds a nearly 58.50% market share in South Africa.

However, it should be noted that its data isn’t based on sales. It estimates market share figures based on an analysis of over five million monthly page views for around 1.5 million websites.

A recent MyBroadband poll also showed that our readers prefer Xbox over PlayStation, with 1,555 readers voting for Xbox and 1,067 saying they prefer PlayStation.

However, it is important to note that PlayStation has effectively focussed on higher-income segments, with no lower-cost consoles. At the same time, Xbox sells both the Series X and the more affordable Series S consoles.

South Africans can buy an Xbox Series S for around R7,000, depending on the retailer, while the PlayStation 5 is typically priced at around R12,000 or just less.

In a country like South Africa, where affordability is often a major driver behind buying decisions, it is likely that many console gamers are willing to forgo some of the features of top-tier consoles for a lower price tag.

According to industry analyst Serkan Toto, PlayStation’s focus on higher-income earners was evident with its recent launch of the PlayStation 5 Pro, which costs $699 in the US.

“This is about Sony skimming the absolute top end of the market, targeting hardcore PlayStation users only,” said Toto.

“It’s not a mass-market device. It seems the entire gaming world is puzzled about Sony’s pricing strategy.”

PlayStation 5 Pro South African pricing

South African PlayStation fans still have a relatively long wait for the PlayStation 5 Pro. Local distributor Gamefinity recently revealed pre-order details and pricing for the console.

Pre-orders will go live on 1 November 2024, and shipping will commence on 13 December. The console will be available from retailers like Amazon, BT Games, Computer Mania, FNB Connect, Game, Hirsch’s, Incredible, and Koodoo.co.za, Makro, and Takealot.

However, Gamefinity notes that the release date could still be subject to change, as it will be impacted by inbound supply chain dynamics and port and customs timelines in South Africa.

PlayStation fans in the country even faced a lengthy wait for the announcement of local pre-order details, with Gamefinity saying it was waiting for regulatory clearance to import units.

“We are awaiting certification from two regulatory compliance bodies. We are beholden to their timelines; however, we are confident that it will be this side of the year,” said Gamefinity CEO Mario Dos Santos at the time.

Gamefinity explained that its pre-order announcement would only be made once it had received clarity from the bodies.

Once the regulatory hurdles were cleared, Gamefinity announced pre-orders on Thursday, 10 October 2024.

For reference, the Sony unveiled the PlayStation 5 Pro on 11 September. The US price of $699, excluding VAT, works out to roughly R12,400 at the current exchange rate.

The local markup — which includes shipping, customs, VAT, and other fees — is roughly the same for the PlayStation 5 Pro and the standard PlayStation 5.

The standard PlayStation 5 retails locally for R13,999, roughly 63% more than its $499 price in the US. Applying the same 63% margin to the PS 5 Pro’s $699 price would put it around R20,000 in South Africa.

Therefore, the South African launch price for the Pro variation is roughly R500 lower than expected.

It is important to note that US prices exclude sales taxes and the luxury goods duties South African Customs applies to electronic goods.