

Deflation can be really damaging because it disincentivizes things like investments and longterm projects. Here are a couple of examples:
- One of the biggest issues with mortgages is if you are under water (can you pay off your debt if you sell the house). With deflation, you could buy a house today and owe more than the house is worth tomorrow.
- If the total cost to manufacture a car is $X, but by the time I can sell the car the market would only pay $X-50, then I’m actually better off not making the car.
Essentially, high deflationary pressure causes people to hold their money and not spend it. It’s what happened in Japan around 1990s-2010s resulting in basically negative growth in their economy - Source
Hyper inflation is a similar issue, but on the other end. The value of money is lost so quickly that things like life savings can become worthless due to money losing its value so rapidly.








Based on this we’d expect the PS6 by 2027, meaning there is only one year left for the Ps5 as “current Gen”.
Sure the “lifespan” of the console will be longer, but most people think of it in terms of the console being the current generation of consoles.