Not just dirt cheap, the turn around time to manufacture was significantly lower. Sony had an existing CD manufacturing business and could produce runs of discs in the span of a week or so, whereas cartridges typically took months. That was already a huge plus to publishers since it meant they could respond more quickly if a game happened to be a runaway success. With cartridges they could end up undershooting, and losing sales, or overshooting and end up with expensive, excess inventory.
Then to top it all off, Sony had much lower licensing fees! So publishers got “free” margin to boot. The Playstation was a sweet deal for publishers.
Then to top it all off, Sony had much lower licensing fees! So publishers got “free” margin to boot. The Playstation was a sweet deal for publishers.