Craig of War
Banned
So how will this impact PS5 price?
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MS is taking a loss on both Xbox Series X and S
- Thread starter Craig of War
- Start date
So how will this impact PS5 price?
Craig of War
Banned
I mean it is common knowledge that both MS and Sony will take loss on hardware sales.
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ExpandKong
Banned
I thought that was kind of how all game consoles were (maybe with the exception of Nintendo) - start off the gen making a loss on the hardware.
Jon Neu
Banned
It's going to be interesting.
If they match the price of the X, they are probably going to sell the console on a loss too.
If it's more expensive, the narrative of the Xbox being the most powerful and yet the most affordable, it's going to be a huge win for MS.
Kerotan
Member
Yeah it's easy for these smucks to seem reliable all the time when the companies they gossip about rarely correct them.
BlueXImpulse
Banned
Do you know why they're taking a loss on Series S? It's because it's a calculate loss. They trap the customer in a digital only ecosystem, where they can't buy used product. So they stand to make more over the lifetime of the user.
Expect Sony to do the same on PS5 Digital and to take a small loss on PS5 if that's what it's needed to match XSX
Expect Sony to do the same on PS5 Digital and to take a small loss on PS5 if that's what it's needed to match XSX
TBiddy
Member
Didn't Phil say that they are not concerned about selling the most consoles and winning the war? why are you selling at a loss then
To gain more subscribers and sell more games?
Business, how does it work, am i right?
Abriael_GN
RSI Employee of the Year
I certainly needed Jeff Grub to tell me this.
Didn't Phil say that they are not concerned about selling the most consoles and winning the war? why are you selling at a loss then
You may want to take the fanboy salami slices off your eyes for a moment.
Selling at a loss means putting consoles in the hands of consumers and making lots more money with subscriptions and digital purchases.
Clear
CliffyB's Cock Holster
If MS can hit the mark on pricing, why shouldn't Sony be able to do the same? Its not like they use completely dissimilar components and supply chain.
As to S being a bigger hit than X, that's completely expected given the enhanced margins on all-digital sales and services.
As to S being a bigger hit than X, that's completely expected given the enhanced margins on all-digital sales and services.
Craig of War
Banned
He lies like all salesman do lol of course he wants to beat Sony.Didn't Phil say that they are not concerned about selling the most consoles and winning the war? why are you selling at a loss then
BluRayHiDef
Banned
They'll make up the losses with Game Pass and their external SSDs that cost $219.99.
Blue Spring
Read my tears about xbox here --->
Doubt. Specs and prices fall in line.
Stuart360
Member
To be fair, most consoles are sold at a loss for the first few years. In fact i'm pretty sure this gen was the only gen where both consoles werent selling at a loss.
420bits
Member
More like common speculation since we don't have any details.
But yes, i get what you're saying but i don't find it worthy of thread #329875 regarding next-gen prices.
Do they take a loss? probably, but its calculated so it doesn't matter.
PhaseJump
Banned
We have no idea how large they went with production.
They're building server blades for Azure and cloud streaming with the same hardware built in, right? Should we not consider that a 3rd or even 4th form factor for this generation when making wild assumptions, one which likely reduces overall costs for how big of a loss they're taking, if any?
They're building server blades for Azure and cloud streaming with the same hardware built in, right? Should we not consider that a 3rd or even 4th form factor for this generation when making wild assumptions, one which likely reduces overall costs for how big of a loss they're taking, if any?
This.
Abriael_GN
RSI Employee of the Year
It depends. Microsoft is an American company with extremely deep pockets.
Sony is a Japanese company, and Japanese companies do not generally like to sell product at a loss. It's also a company in which the PlayStation business has been kind of treated as the bank to make up for the losses of other businesses, so it'll depend on how much Sony's higher ups are willing to push. They may very well decide to count on the inertia of PS4 and hope that it balances a higher price point.
My prediction is that they'll sell at a loss, but they likely won't accept as big a loss as Microsoft did. There's also that design, which IMHO makes things worse because I guarantee manufacturing the PS5's box has a higher cost than the Xbox Series X and S. I'm not sure why they went that way, but it's not a great idea in an economy in which they should be trying to shave every little bit they can off production costs.
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phil_t98
#SonyToo
how much will a replacement ssd that’s over 2gig be for ps5?
Wandering Leopard
Member
I absolutely think both MS and Sony will be taking loss on the hardware (at least initially) but I have no idea how much this would be.
But you have to factor in that everyone also pays a monthly cost, so the question is how many months before those costs cover the cost of the hardware before it's pure profit; all the accessories people buy with their new consoles also comes into this.
But you have to factor in that everyone also pays a monthly cost, so the question is how many months before those costs cover the cost of the hardware before it's pure profit; all the accessories people buy with their new consoles also comes into this.
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I'm nobody
Member
Game pass has been a flat revenue
mckmas8808
Mckmaster uses MasterCard to buy Slave drives
Didn't Phil say that they are not concerned about selling the most consoles and winning the war? why are you selling at a loss then
Of course Phil was lying. That was obvious from day one.
Craig of War
Banned
It not speculation they are 100% taking a hardware loss unless Sony decide to price the PS5 at 700-800 than they won't take a hardware loss but as of right now MS is taking a hardware loss by pricing their console 299 and 499 that why i was curious to see what PS5 price will be since MS is already taking a loss by selling the X at 499.
Sony has literally made a loss day one on every Playstation console they've ever sold (at launch). The gaming division is also not their most profitable division. Also the company is not Nintendo, they are not shy about investing large sums of money for future gain historically.
Stuart360
Member
I'm pretty sure he's being sarcastic. You see Microsoft saying Gamepass isnt a big moiney maker for them yet, really means its a massive fail for them.
Abriael_GN
RSI Employee of the Year
Game pass makes money by putting games in people's hands and encouraging to spend money in microtransactions and DLCs for these games.
GHG
Gold Member
Depends on how much of a hit Sony are willing to take and whether they might have been able to negotiate with manufacturers/suppliers for lower costs in exchange for higher order volumes.
So basically, we have no idea until the price is revealed and when information about the cost of manufacturing leaks out.
So basically, we have no idea until the price is revealed and when information about the cost of manufacturing leaks out.
iamvin22
Industry Verified
This right here.
BluRayHiDef
Banned
I don't know, but SSDs that meet Sony's requirements for compatibility with the PS5 haven't been released yet; I would imagine that they'll initially be more expensive than Xbox's proprietary SSDs due to being new to the market. However, since they'll be made by numerous, competing companies, their prices will eventually drop below that of Xbox's proprietary ones in terms of cost per gigabyte, whereass Xbox's will remain more or less the same or decrease very little over time due to lack of competition.
Abriael_GN
RSI Employee of the Year
As I said, I expect them to take a loss, but I seriously doubt they're going to go as far as Microsoft did.
CobraAB
Member
How common?
jigglet
Banned
I guess we don't know what "far" means. $10? $100?
The bill of materials could be $400 yet they'd still make a loss at $500. The R&D, marketing and all that adds up.
GHG
Gold Member
Gamepass isn't even profitable for them though.
This is a long term strategy to be well positioned for when the industry moves over to one that is predominantly led by subscription services and cloud streaming. They want to get people hooked into gamepass early so that they are seen as the "Netflix" of the industry.
godhandiscen
There are millions of whiny 5-year olds on Earth, and I AM THEIR KING.
It is obviously taking a loss on the hardware but that will be offset with Gamepass subscriptions and mtx. Eventually the profits will be superior thanks to this decision.
Craig of War
Banned
Very Common remember the PS3 launch it took Sony 800 to make the PS3 and they sold it for 600 that a 200 loss.
BluRayHiDef
Banned
danielJackson
Banned
Then why bother with xses when current gen gets those games for years and are cheaper?
Cheaper doesnt always sell more, we will see.
Maybe xbox naming is too confusing to casuals?
And I dont remember seeing xbox ads on tv etc ever, so it doesnt help to explain it if that continues. (Ps4 ads are common here)
DaGwaphics
Member
I think the PS5 price won't be as high as some figure. I can't see any components that should cost them more than XSX. The cooler and PSU maybe a tiny amount. The APU is smaller, but maybe slightly more problematic as far as pegging the speed and power usage window, but probably still cheaper. Ram is the same amount but cheaper config, smaller SSD (speed doesn't really effect the price, the primary reason the fastest drives are more expensive on PC is because they can be), etc.
Why not? It doesn't matter how much money you have, every penny a company invests has to be justified. While Microsoft is a wealthier company, they aren't going to write Xbox a blank cheque and the same goes for Sony. If they want to launch at a loss, they need to justify it, for which they can point to the lucrative digital games market. There's no reason why Sony won't go for a similar level of loss on each console sold for that reason. Whether they actually DO is uncertain, I agree, but they would be making a big mistake if they don't price match Xbox. The potential rewards dwarf the losses on hardware.