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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
Great Hair
Banned
Gonna be $299!!
I´ve already laid out the plans, what Sony will do or should do.
I´ve already laid out the plans, what Sony will do or should do.
$299 for the PS5 DE ($150 loss per console)
$399 for the PS5 BD ($100 loss per console)
total $250 loss per sold PS5
versus
$299 loss per unsold XSS (why buy one, if PS5 DE is cheap)
$200 loss per sold XSX (new price @$350, to remain competitive)
total $499 to $599 loss per sold XSS, XSX
DO IT SONY!!
HeresJohnny
Member
$499 is too high, especially given current events. But just release the price already; it’s ridiculous that we are 2 months away from launch and nobody knows the cost. It’s already clear they are going to charge what they are going to charge, just announce it so people can plan for it.
Oppoi
Member
TheContact
Member
I think $499 across the board was the consensus and that seems to be what’s going to happen. Sony might still be waiting because their prince announce was planned in some way whereas Xbox’s leaked and to their credit, went with it.
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Bolivar687
Banned
I am here today to officially declare my prediction that Sony will announce a $349 digital edition KILLSHOT to bury Microsoft's Xbox division forever.
Chiggs
Member
This right here.
SonicJams
Member
Someone's great artwork?
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Lone Wolf
Member
A $150+ loss on every console sold. Lets see how that works out.
TKOFromTokyo
Member
I think that it would be a great price if your goal is to kill physical releases and make $$$ on software.
-Arcadia-
Banned
These companies do occasionally think outside the frame of competition.
Microsoft seems to be targeting the kind of gamers that typically invest after several price cuts, and a few years into the console, but from Day 1. This is likely to offset any trouble from a $500 asking price for Series X as well, which is acceptable for a Pro model, but a little historically high (and troubled; Xbox One, PS3) by itself.
Audiophile
Gold Member
$399 / $449
Lone Wolf
Member
If it costs $449 to make then selling it at $499 would still be a loss.
Unknown?
Member
I was assuming that figure meant what it cost to make it, package, etc. Not just assemble.
Dodkrake
Banned
That's easy. Sony has around 30B in cash and securities. A $150 loss per console would mean 1.5B loss on the first 10M. Manufacturing prices go down as the gen moves along.
So it's not unfeasible and would kill the series S
Dodkrake
Banned
Because it's not the price of the drive, it's the perceived value. Let's say the following scenario
You want the discless to sell more. In that case, you have to make it so that the perceived value is higher. For $50 difference, most will percieve the disc SKU to be better, and will bite the extra.
For 100 though, the perceived value shifts to the diskless SKU. This also works in reverse. If you want to sell more disc versions, you need to make the value look less appealing.
Tldr: $100 is a valuable deal, 50 is not
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93xfan
Banned
299 and 347.53
Pagusas
Elden Member
So you think Sony is subsidizing the Digital only system with the Disc system to get a lower price point?
Chromata
Member
The optical drive doesn't cost $100, only around $20-30 IIRC. The reason why people think the digital version will be $100 cheaper is because creating extra incentive to buy digital massively benefits Sony.
It completely eliminates the possibility of that consumer buying used games, removes the cost of manufacturing physical copies, and removes any cut that retailers might get. Sony wants people going full digital ASAP.
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Dodkrake
Banned
Yep. Sorry, my keyboard fudged and posted early. But you're right. On the diskless SKU they save on packaging, don't lose to second hand sales and get the 30% fee from store listings. More diskless versions means more money and lower costs long term
MasterCornholio
Member
Yep that's going to be big for the Diskless systems. For example, I bought a used copy of Spiderman for 10$. It's highly unlikely that a digital copy is that cheap. I don't think retailers are going to like the DE due to this and may try to stock more of the disk versions.
$349 and $449 respectively. I think those are nice sweet spots, small loses and provide good value. Make a lot of sense, I would love $399 for the full one drive version, but I doubt it. Sony might be willing to take more of a loss on the digital, because they know they will make it all back and more. But lets not forget, its only been 7 years since Sony was in bad shape. They may be scared or their new found digital service money, may give them more confidence. Let's see!
MiyazakiHatesKojima
Banned
Chromata
Member
Yeah I'm curious how retailers will respond to PS5 DE and XSS, especially retailers with little alternative sources of income like GameStop.
Northeastmonk
Gold Member
Now it becomes of a question of when will all this happen.
GameStop employees are going to discourage people likes it’s the PSPGo all over again.
i thought about that today. A console that completely separates itself from a brick and mortar store. It’s not like everyone is going to come back to GameStop for pre-paid cards.
GameStop employees are going to discourage people likes it’s the PSPGo all over again.
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phat_crazy
Member
I predict 350/450
MasterCornholio
Member
I can imagine that they will try to push the disk versions with deals.
nikolino840
Member
1 dollar
Lone Wolf
Member
Your comment is why fanboys don’t run Sony.
BusierDonkey
Member
$549 and $599.
They don't need to price it lower than the Xbox, they have a loyal Playstation fanbase that will buy them at $599 as fast as they can manufacture them. Eventually they will release a Pro version for $699 and redesign the base version with cheaper materials which will then be priced more affordably.
I think they'll charge more under the pretense of selling it as a premium device.
They don't need to price it lower than the Xbox, they have a loyal Playstation fanbase that will buy them at $599 as fast as they can manufacture them. Eventually they will release a Pro version for $699 and redesign the base version with cheaper materials which will then be priced more affordably.
I think they'll charge more under the pretense of selling it as a premium device.
longdi
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
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
MiyazakiHatesKojima
Banned
Everytime I read a post like this, I realize how much crow will be eaten by the poster themselvesSeries 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
namekuseijin
Banned
400 with subsidy, as usual
40+ years of the game console industry and journalists still completely clueless about this historical fact
40+ years of the game console industry and journalists still completely clueless about this historical fact
Entroyp
Member
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
If MS was targeting $499 since the beginning what was Sony‘s target?
MasterCornholio
Member
Sony targeting 599$ doesn't seem likely to me especially after what happened with the PS3. Then after the PS3 they saw alot if success with the PS4 and PS4 Pro at 399$. Microsoft were the ones to introduce a 499$ system to the market.
With that said I have my doubts that they were targeting 599$ like some people are saying.
Entroyp
Member
Yea, I mean Cerny said Sony has to be responsable with cost for consumers during the Road to PS5 video... and are we supposed to believe that means a $550+ BOM?... Doesn’t make sense.
MasterCornholio
Member
I bet you that Sony told Cerny what the maximum cost would be and he designed the system around that. I get that some things can happen to increase the cost at the last minute like scarcity of parts but would it really jack up the cost by that much?
longdi
Banned
IMO $399 at the beginning, just like their last 2 success
But then it seems they keep adding more frills and perhaps their realization NAND flash will never allow $399. So guessing $499 to match the Bloomberg news.
Entroyp
Member
IMO $399 at the beginning, just like their last 2 success
But then it seems they keep adding more frills and perhaps their realization NAND flash will never allow $399. So guessing $499 to match the Bloomberg news.
This sounds plausible.
chimpsteaks
Member
$349 and $449 and would be devastating to MS
Goro Majima
Kitty Genovese Member
Honestly I think demand for the PS5 is such that $599 for this year won't kill them if they're able to drop it to $499 next holiday season.
Like they aren't all going to sell out and end up on eBay for $1200 anyway.
Like they aren't all going to sell out and end up on eBay for $1200 anyway.
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