Friday, June 10, 2022

EVs and VGs are the new Razors and Blades









Sony is partnering with Honda to make a new EV automobile. What does Sony bring?

The car business “is shifting toward EVs, and at the same time they’ll be hooked up to a network, so they’re being turned into a tech product,” Mr. Yoshida said.


Currently, drivers’ ability to enjoy a Sony movie or videogame is limited by the need to keep their eyes on the road, but Mr. Yoshida expressed hope that full autonomous driving would spread in the next few years. 

Without having to watch the road, drivers, or rather riders, can enjoy some Sony entertainment. It looks like Sony will implement the common video gaming pricing model popularized by Gillette a century ago of "giving away the razor, to sell the blade." That is, set a low margin on the "system," in this case the autonomous EV, to charge more for the accessories, in this case, connected games and entertainment. This sort of metering price discrimination means that hardcore rider/gamers who consume more entertainment and receive more surplus will be paying larger margins. More casual rider/gamers who consume less will pay less.

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