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[megreotsugua]

1. With XSS being priced at $299, it will dominate the sales of XSX by a huge margin. It will be the go-to console in the xbox camp. In effect, the overwhelming majority of xbox console will be digital only - no way to play physical copies of games.
2. In contrast, if Sony promotes the physical edition as the cheaper sku, the overwhelming majority of the console sold for playstation will be able to play physical copies of games. It means friends, cousins, and classmates will still be able to share games as usual.
3. The positive image it will create in favor of the playstation will be huge. -> Watch this video

Additional advantages:

• Playstation version of games will dominate amazon rankings and online retailer store all over the world.
• Physical and online retailer presence will be dominated by playstation.
• Dedicated video game retailers might choose to promote PS5 PE to customers.

Additional notes:

55% of games were sold through PSN, but it doesn't mean that 55% of gamers buys their game through PSN exclusively. Retail, whether online or physical, is still big and will continue to be.

Sony will continue to rake in money from PSN whether they choose to promote an all-digital or not. PSN will grow organically.

 

[Bergoglio]

 

[megreotsugua]

First, it's not true. When PS3 was released Sony was bleeding money from all their electronics division. It was their insurance business that saved them.

Second, people has been saying $399 DE is possible. Yet, the only difference between DE and PE is a $20 blu-ray. Ergo in my mind, $399 PE is also possible, or make that $449 to make it more believable.

 

[megreotsugua]

Here's the deal:

People, including many PS fans, are sure or wishful that Sony will take a huge loss from the Digital Edition SKU and break-even or little loss from Physical Edition.

My argument doesn't really veer far off their contention. All I'm saying is that if Sony is willing to take a loss, it should be the Physical Edition and not the Digital Edition.

Sony will continue to rake in record profits from PSN whether they promote an all-digital or not. PSN will grow organically. On the other hand, retail whether online or physical will still continue to be big.

 

[Sleepwalker]

If PSN will grow organically and all that jazz then why not.. just scrap the DE?


Doesn't make any sense to offer the lesser product for more $. Yeah they could produce a version with a bigger SSD, but they can also do that with the regular one.

It's pretty clear to me that the digital edition is supposed to be a lesser entry cost into the ecosystem, It's a very hard sell as the "premium" product.

So no, IMO it is not wise.

 

[Matt_Fox]

You've missed the biggest advantage of digital - profit.

The Playstation Store 'The Best Place To Buy'... why would Sony want to share the cut with retailers when they can keep all the moolah $$$$$$?

 

[Night.Ninja]

Can't we collate all these concern threads

 

[megreotsugua]

Can't we collate all these concern threads

It's not a concern thread. It's a suggestive thread. Many PS fans, including me, are convinced that the DE will be the cheaper console. I am offering an alternative way of thinking.

 

[AV]

So the one that costs them slightly more to manufacture and the one that has the advantage of the disc drive should be... the cheaper one? Meaning the advantage of the discless version is..?

Am I being trolled here?

 

[megreotsugua]

So the one that costs them slightly more to manufacture and the one that has the advantage of the disc drive should be... the cheaper one? Meaning the advantage of the discless version is..?

Am I being trolled here?

1.65TB SSD. For twice the SSD capacity, $100 more is a steal. Third-party SSD that will be compatible with the PS5 will not be cheap.

 

[abstract alien]

Can't we collate all these concern threads

Nah. We twitter now. Every poor thought gets a thread.

 

[Knitted Knight]

I see OP's point: Free marketing and special treatment from retailers as they have an "incentive" to push that hardware to get consumers in the door. Outside of Gamestop however, which sorely needs it, I don't see other big American retailers like Walmart, BestBuy or Target doing the same, specially with a native giant (MS) competing against Sony. Sony would have to do some serious outreach and planning with these retailers (and not just the big ones in the U.S), to make sure the retailers fulfill their part of the bargain. Simply unfeasible OP. They rather push the digital, and remove the middle-man (retailers) and settle for that.

 

[AV]

1.65TB SSD. For twice the SSD capacity, $100 more is a steal. Third-party SSD that will be compatible with the PS5 will not be cheap.

You might want to include that minor detail of your argument in the OP so it no longer looks like the dumbest post of the year.

Still, no. The whole point of getting people onto digital consoles is that they no longer have the option to buy used games. Digital and add-on sales already dominate Sony's Playstation earnings. Sure, plenty of people still buy physical, but it's not the most popular choice any more, by far.

 

[VertigoOA]

Retail is dead.

 

[megreotsugua]

I see OP's point: Free marketing and special treatment from retailers as they have an "incentive" to push that hardware to get consumers in the door. Outside of Gamestop however, which sorely needs it, I don't see other big American retailers like Walmart, BestBuy or Target doing the same, specially with a native giant (MS) competing against Sony. Sony would have to do some serious outreach and planning with these retailers (and not just the big ones in the U.S), to make sure the retailers fulfill their part of the bargain. Simply unfeasible OP.

I'm also thinking of online retailers. Amazon and the like. Wouldn't a dominating presence in both online and physical retailers sway the general opinion of what console people should get?

They rather push the digital, and remove the middle-man (retailers) and settle for that.

I've argued that everywhere even before Sony revealed a Digital Edition SKU. I get that completely.

 

[IDKFA]

It would be wise for the all digital edition to be cheaper. They would make more money off it as you'd only be able to buy games from the PS store.

 

[Knitted Knight]

I'm also thinking of online retailers. Amazon and the like. Wouldn't a dominating presence in both online and physical retailers sway the general opinion of what console people should get?

I've argued that everywhere even before Sony revealed a Digital Edition SKU. I get that completely.

I saw that in OP. Just saying they rather settle for the easy guess which we're almost 99% sure will happen (cheaper digitial sku compared to PE).

 

[fybyfyby]

It doesnt make sense to position disc version as cheaper SKU.
XSS is much weaker then XSX, so price is much lower and people have something adequate to price.

If PS5 disc version is cheaper, then PS5 digital has no adequate value for people to buy it - only maybe the look - its more slick. But if you visualy like PS5 disc version you have literally no reason to buy digital version then.

Its the opposite. Sony went one power level way. That means, they need to make price levels differently then MS.
Advanatage is that you always get fullly powerful PS5. Thats cool.
With digital edition, Sony can have ROI in digital sales, which it has under its control through PS Store.
But Sony doesnt have control over used disc games, so obviously if both editions manufacture will cost the same, ROI for disc one is much worse. But its even more expensive to manufacture, so the ROI is even more worse.

In my opinion, it makes sense now more then ever to undercut PS5 DE price, because Sony has digital ecosystem working. In times of PS3, store was in the beginning with majority of people buying BR discs.

So I can imagine, Sony undercuts PS5 DE hugely with ROI in mind. And classic PS5 selling above manufacture price. So according to manufacture price of around 470 USD (or something like that), it can really be 400 for digital and 500 for disc version. Its absolutely adequate.

Its not direct answer for XSS 299 USD, but PS5 DE has much more value then XSS. Im curious what will Sony show us in next weeks.

 

[RoadHazard]

Of course not. They want to lock people into their digital ecosystem, so obviously they want the DE to be the more attractive choice.

Maybe this is also why the regular PS5 looks much worse?

 

[Hunnybun]

This has to be the maddest post I've ever read on here.

They'd effectively sell zero units if they priced the DE above the disc one.

If you'd just said they should scrap the DE and subsidise the normal console, and try to win favour from retailers and gamers by offering value, that's at least a coherent argument.

But it's still pretty weak. The benefits of people being locked in to a digital ecosystem are so great, and so measurable, and the benefits of the suggested approach so speculative, that no sane company would roll the dice on the latter.

 

[Birdo]

COVID killed game retail here in the UK. I honestly don't see it ever coming back.

 

[Red Rackham's Revenge]

I hadn't really thought of it that way, but you make a good point.

The below video was a powerful piece of PR after Microsoft's goof.




It'd also be beneficial for Sony to populate people's living rooms with UHD players as it's the only real way they can showcase their TVs as streaming is pathetic in comparison. Sony's also a member of the Blu-ray Disc Association.

But then i'm not sure who'd buy a DE besides digital elitists who think they're flexing when they talk about their digital games purchases.

 

[megreotsugua]

But then i'm not sure who'd buy a DE besides digital elitists who think they're flexing when they talk about their digital games purchases.

You are right. I don't have answer for that either. The only point for the DE then would be aesthetic. Unless part of the plan is only to release 1.65TB and 3.3TB in DE only and still sold a loss or break even thinking the ROI is high for DE.

But I'm beginning to back down on this speculation. I've been always in the $399 DE and $499 PE camp prior to this idea.

 

[notseqi]

Make a ton more PEs than DEs at console launch. The scarcity of DE will put many players in the 'dilemma' to fork over 50-100 dollarydoos more for PE, especially after PS4 took 1-2 months here to satisfy all demand.

 

[Vawn]

I really don't understand the point you're trying to make OP. That Sony wants to promote physical over digital?

They definitely do not. Ideal situation is to have just enough physical players so retailers keep boxes on shelves, but everyone else buys digitally where Sony's profits are much higher.

 

[namekuseijin]

most insane suggestion ever

 

[CeeJay]

Another thread of you peddling the exact same ridiculous argument that doesn't stand up to the slightest counter argument?

If Sony preferred you to buy the disk version of the PS5 and price it cheaper then why even bother releasing the digital edition in the first place?

Both Sony and Microsoft will be much happier if you buy the digital console and they will make those consoles more attractive to buyers for that reason. The disk versions of otherwise identical spec consoles are there purely to retain existing game disk owners within the eco-system, collectors, those that refuse to go all digital and also the physical retailers. Remember that 100% of digital game sales is money in the online store owners pocket, the same cannot be said for physical.

Which console promises more lifetime profit to Sony?

 

[vito_don_corleone_]

This... doesn't make any sense.

Players on consoles are finally shifting towards digital (something which PC market adopted much earlier).
What's more important is that both platform holder (PSN) and publishers make more money on digital distribution. This is one of the reasons Sony/Microstoft are willing to make loses on digital-only consoles:

No disrespect but nobody gives a damn about "Amazon rankings" or "retail presence". Even physical copies are more an more sold online...