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A Friendly Reminder About PlayStation 5 and the Cost to Produce it ($499 gang, GET ITT!!!)
- Thread starter MiyazakiHatesKojima
- Start date
- Opinion
MiyazakiHatesKojima
Banned
Series X leak pre-date this Bloomberg news, and MS was targetting $499 all along. They hit it. Good for all of us, except Sony.
This Bloomberg (old) news made PS5 BOM really close to $499. A little uptick in material prices, push past the $499, the final prices may be a challenge.
Sony is so quiet for so long, im concerned that uptick is forcing their accountants to work overtime
tryDEATH
Member
There's this.
Sony Boosting Output of PlayStation 5 to Meet Surge in Demand
Sony Corp. is roughly doubling its PlayStation 5 production to 10 million units this year as it sees the prolonged effects of the Covid-19 pandemic boosting demand for gaming, according to people familiar with its plans.www.bloomberg.com
Weird how with a severe increasing in production costs (and MSRP) they decided to increase production.
“We must keep PlayStation 5’s bill of materials under our control and we need to make the correct number of units in the initial production,” Sony’s Chief Financial Officer Hiroki Totoki said at an earnings briefing earlier this month.
BoM is one thing, but there was a significant halt in shipment of materials world wide, which delayed the original timeline that now needs to be made up and that will cost a ton when it comes to assembly and delayed shipment around the world of the actual product.
Also that BoM is just a guestimate and isn't something I would put too much trust into they barely even insinuate prices for the parts bar the cooling so they themselves are in the dark when it comes to the remaining parts.
MasterCornholio
Member
Sounds like something that would affect the competition as well. Afterall the two are assembled in China and use very similar parts.
tryDEATH
Member
It would, but we got the of price for Series S/X and "confirmation" that MS is selling both consoles at a loss. The loss could very easily be the cost of extra labor and shipping, which when applied to Sony, could easily take the system over budget.
I am just saying with CoVID the prices and total cost will have definitely gone up, thus any information of cost that was reported pre-CoVID should be take with a huge grain of salt.
MasterCornholio
Member
Depends on what their budget was. It could have been 399$ so they might be forced to sell it for 499$ due to Covid. What I'm trying to say is that there really isn't any evidence that it's more expensive to produce than the XSX. We have to wait and see what happens but I doubt we are getting a 799$ system.
KungFucius
King Snowflake
I think they might go 500/600. They want you to buy the digital one and want to position their product as superior to the XSX. These assholes also sell DS4s at 65 a pop late in the cycle.
tryDEATH
Member
I don't expect $799 or anything like that, but neither do I expect $400 something everyone here is expecting. Such a price point was achievable in the past in a very meticulous and perfect uninterrupted environment. They also didn't use top the line parts/technology and depended on older hardware pieces to lower the cost. We are jumping right into the future with the NVME SSD and RDNA2 GPU's, which aren't even out yet for PC's and will release 2 to 3 weeks before the consoles do.
There really aren't any big parts you can compromise to lower the cost unless you go with the Series S approach that has a system wide cut in basically all departments and target a lower overall performance point. Removing a Bluray drive at this time is at most a $10-$15 write off, there just isn't enough of a write off between the PS5 and PS5 DE to warrant a $100 difference.
It will most likely be either 449 or 500 for the PS5 DE and 500 or 549 for the regular PS5, which is a acceptable price point anything more expensive than that and you're going to end up in hot water.
DemonCleaner
Member
THIS with 80% likelyhood.
15% likelyhood that we see hibris-Sony again, after winning last gen -> $499
5% likelyhood of them feeling threatened by Series S and will sell the disc-version at $399 / $379 (digital)
i think they should feel threatened though and am convinced that they could sell at $399 without or with a very slight loss. but they probably are too arrogant for that.
Chittagong
Gold Member
PS5 Digital at $399 would be totally fucking nuts.
But I can well see Sony to do it as a mic drop moment. OP makes a good point of higher all-digital revenue being worth some subsidy over the disc editon.
If Sony price them at $399 and $499, they will really boost the digital transition by having a phenomenal full next gen entry price.
But I can well see Sony to do it as a mic drop moment. OP makes a good point of higher all-digital revenue being worth some subsidy over the disc editon.
If Sony price them at $399 and $499, they will really boost the digital transition by having a phenomenal full next gen entry price.
The Fartist
Gold Member
Rayderism
Member
Honestly, if the PS5 would have had AT LEAST physical PS1/PS2 BC along with the PS4 BC (lacking PS3 BC would be understandable), I would have been willing to pay up to $1000 for it. I mean, if I could have kicked out the not-HDMI-native PS2, and the PS4, and just have the PS3 and PS5 under the TV, that would have been great because I'd only need two consoles for the entire Playstation console library. But as it stands, it may not even be 100% possible to eliminate the PS4 Pro.
And I don't care if they do something crazy like make the all-digital PS5 be only $199, I ain't buying that version. I will ONLY buy the disc version......don't want to limit any possibility that older console physical BC could maybe, possibly be added at a later date, either as a firmware update or payed app, no matter how unlikely.
And I don't care if they do something crazy like make the all-digital PS5 be only $199, I ain't buying that version. I will ONLY buy the disc version......don't want to limit any possibility that older console physical BC could maybe, possibly be added at a later date, either as a firmware update or payed app, no matter how unlikely.
Karmic Raze
Member
I think the PS5 will be $499 and the PS5 DE will be $399. I just hope that we get some sort of pre-order news soon as I am itching to get mine in. I know tons of other people are too. It’s starting to make me nervous.
ZehDon
Gold Member
Not likely. Every game maker in town is making more money during COVID. Nintendo, for example, can't make enough Switches fast enough. Sony are getting ready to meet the increased demand everyone is trying to meet.
It's worth remembering: the PS4 hardware was a reaction to the devastation that the PS3 wrought on Sony. PS4, and the PSVR, were designed to be cheap, and get cheaper quickly, to ensure Sony as a corporation could make as much money as possible. This time around, PlayStation is coming hot off an extremely successful generation, not one that lost them billions upon billions. Their comments suggest they're looking deliver a "Premium" machine, over a cheap one. So, $400 for the PS5? Not likely. The PS5 DE is a cost-cutting measure, just like the Series S is. You don't need a cost-cutting measure if you can deliver your premium console at $399. Will the DE drop for $399? I suspect if it could, we'd have heard about it already. I'd prepare for an expensive console.
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SkylineRKR
Member
399 is a pipe dream. I think 449 is already pushing it and seeing Sony's market potential they don't even have to undercut MS. They can probably get away with 549 for the disc version even.
prinz_valium
Member
Sure, but Series X was rumored to launch in September already. So they have more stock with the new launch date of November
DonJorginho
Banned
That would be amazing, I think they won't undercut by such a margin but if they truly do cost $450 to make (according to Bloomberg), that is certainly possible.
Seems like a great way to go bankrupt
This whole discussion about BOM though, if $470 or $499 is accurate then they definitely would be taking a loss if they hit the $499 price point. Typically a BOM is a figure for how much the components costs in their raw form. Construction, Shipping and Labour isn't included and would be a surcharge on top. You would also have other expenditures which would be lumped into the Playstation or Xbox brands related to marketing, r&d etc. The actual figure would be far greater but these costs come down over time the more you sell and as manufacturing processes improve. As is typically common knowledge, no-one makes any money on the consoles themselves but is the services which you can sell to use them.
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I think $400 and $500.
Dodkrake
Banned
Of course. Companies never short sell their products to penetrate a market or upsell a competitor short term. NEVER.
You know shit about retail, and it shows.
CrysisFreak
Banned
299 gang square up it's on
Ms will adjust the ERP of series X to 449 And S to 279 if this happens! Fun times ahead!
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DonJorginho
Banned
I am praying for that to happen, makes it possible for me to get a Series X instead of an S alongside my PS5.
Me also , I want to see melt downs
Phrixotrichus
Banned
Digital 399 (in expectance of PSN revenue)
Physical 499 (~BOM ballpark and they simply don`t need to undercut MS)
Physical 499 (~BOM ballpark and they simply don`t need to undercut MS)
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Lone Wolf
Member
Roronoa Zoro
Gold Member
I'll be buying physical edition so hopefully there's a $100 difference to give me a few more seconds to preorder that one
Roronoa Zoro
Gold Member
They couldn't do that after taking preorders so I say Sony should wait till the 23rd
BlackTron
Member
No, and this is one big reason retail game sales are so important. Without selling games, the retailer has no incentive to be a console distributor for free.
DForce
NaughtyDog Defense Force
Series X leak pre-date this Bloomberg news, and MS was targetting $499 all along. They hit it. Good for all of us, except Sony.
This Bloomberg (old) news made PS5 BOM really close to $499. A little uptick in material prices, push past the $499, the final prices may be a challenge.
Sony is so quiet for so long, im concerned that uptick is forcing their accountants to work overtime
Xbox fans always think Sony is concerned. lol
Dodkrake
Banned
Barnabot
Member
it's just your imagination. That's the first thread I've heard about that subject.
EDIT: Shit! wrong price speculation thread
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Lone Wolf
Member
Ok let’s try this. In what world would Sony take a $150 loss on every console sold? That’s insanity. Sony is the market leader and has loyal fans. Also, launch systems will sell out regardless. There is not enough software to make up that big of a loss At launch. The prices will lower in time.
megreotsugua
Banned
Memory prices are falling due to low demand for smartphones.
Stiflers Mom
Banned
Yep. It's time for that second job for PS5 buyers.Everytime I read a post like this, I realize how much crow will be eaten by the poster themselves
I bet they aren’t that’s why the announced the price .. Still waiting
bargeparty
Member
I really fucking hate this picture.
V4skunk
Banned
How old are you? 12?
Sony did the exact same thing at PS4 launch. Also Sony can afford to make a loss in each console.
DonJorginho
Banned
Someone gives their friendly take on something you said and your first thought is to write an insult? Very mature my friend.
And I know they did, but I just am always pessimistic when it comes to things like these, and Xbox have delivered such a good price list it will be hard to undercut that significantly, which is why I would say £429.
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