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Forbes Contributor: Sony Does Not Want To Play ‘Price Chicken’ With Microsoft Ahead Of PS5, Series X Launch

GamerEDM

Banned
Sony Does Not Want To Play ‘Price Chicken’ With Microsoft Ahead Of PS5, Series X Launch
Paul TassiSenior Contributor
Games
News and opinion about video games, television, movies and the internet.
Xbox Series X
MS
We are currently locked in a weird dance with the reveals of two next-gen consoles, the PS5 and Xbox Series X. Both Sony and Microsoft have revealed information about their upcoming releases, but there’s one thing that neither the verbose Xbox team or more secretive PlayStation squad have shared: the price.
There have been rumblings on both sides of this issue. I first heard that Sony was waiting for Microsoft to go first, announcing its price so that they could undercut it like they did in 2013 with the PS4 going up against the Xbox One, $400 versus $500.
It stood to reason that could easily be possible, given the Series X’s rather insane specs, which should in theory require a higher price.
However, things change.
Now, I’m hearing a counter-narrative. That parts/manufacturing costs of the PS5 have pushed its potential price up to probably $450-500 instead, and now Microsoft may be the one waiting for Sony to announce its price first so then they can undercut instead.
Who is on the stronger footing here?
My guess is probably Microsoft, and I don’t think Sony wants to play this game of chicken.
PS5
Sony
Microsoft is all smiles publicly about their gaming division and the future and they claim that console wars are beneath them. I don’t buy it. I think they hatedhow the past generation played out, where the PS4 outsold the Xbox One over 2:1 when previously, PS3 and 360 sales were close to identical. And even releasing a powerhouse upgraded system like the Xbox One X did nothing to change that dynamic.
As such, I do buy the idea that it’s Microsoft holding back its price now, waiting for Sony go to either match or undercut them. Why else would they be revealing every single thing about the system other than that?
I may not fully be on board with the idea that Microsoft will slash the Series X cost down to $400 and eat an enormous loss. But it seems more likely that if Sony does push the cost of PS5 to $450 or $500, that at the very least, Microsoft will match it, and this other talk of the Series X being a $600 console will not pan out (I maintain Microsoft will know better than to release a console priced that high in the wake of a global economic meltdown).
I also believe that Microsoft is going to be more willing to eat a loss on a console than Sony at this point A) because they are one of the biggest corporations in the world and have that power and B) no matter what, I don’t think they want a repeat of being undercut in any way by PlayStation at launch here like what happened in 2013. Also C) they can likely make up a lot of ground with a Game Pass subscription essentially being a mandatory part of the Xbox ecosystem now.
Series X
MS
The X factor in all of this (no pun intended) is Xbox Lockhart, the long-rumored “lower-spec” console that Microsoft may debut…at some point, either this fall or later, where it could be a lower cost option to the higher cost Series X, though its existence has yet to even be confirmed by Microsoft, and it’s getting rather late in the game to announce something like that. Yet everyone still believes it’s coming. Its potential existence undercuts the notion of a Series X priced too low, as what room would that leave for a Lockhart?
I say that two consoles released simultaneously with different power levels and prices is a bad idea, and MS would be better off just lowering the price of Series X and making it the system to launch this fall. Again, as of right now that iswhat’s potentially happening, as we have heard literally nothing about Lockhart from Microsoft directly, but that may change.
It’s a strange dance Sony and Microsoft are doing, but I think MS is playing for keeps this time, and Sony should be careful.
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darkinstinct

...lacks reading comprehension.
It's not a dance, the SSD requirements Sony has simply lead to a higher cost than the difference in power. Sony is dependent on very rare parts. That will eventually over lifetime change, but for now PS5 will be more expensive to produce. No current consumer grade SSD is good enough to be put into PS5. That limited availability leads to very high BOM. The 20 % difference in power on the other hand translates to a 10 % price difference at most, depending on what custom silicon Sony needs for their audio engine and SSD controller their APU could be more expensive than the XSX.
And it's not about playing chicken. If PS5 is indeed more expensive, they need a reveal strategy to make people forget about price. And draw them in with other means. Which will mostly be software. Yesterday was step 1. Making people believe they can expect that kind of performance in PS5 games.
 
D

Deleted member 17706

Unconfirmed Member
There is a reason the ps5 has less tflops, and that's the ssd.
I believe that both machines will be priced similarly. Sony's ssd most cost a premium and so is the extra flops you get with the series x.

If it actually enables a level of speed in asset streaming and load times that otherwise would not have been possible (and isn't even available on PC yet), then I think they made the right choice. Microsoft won't be able to match it for the entire generation because they will have to design games with the base model (and Lockhart) in mind.
 

//DEVIL//

Member
Sony kinda played it smart and out played MS based on what I read .
Sony can always release a ps5 pro with higher specs couple of years from Now if deemed necessary .

MS can’t change SSDs for the entire generation due to compatibility issues with ( by the time of release) existing XSX .
 

Goliathy

Banned
looking at the recent Sony earnings they really don't have any choice. The Playstation division is one of the very few division at the sony group that actually makes money right now.

Sony kinda played it smart and out played MS based on what I read .
Sony can always release a ps5 pro with higher specs couple of years from Now if deemed necessary .

MS can’t change SSDs for the entire generation due to compatibility issues with ( by the time of release) existing XSX .

XSX SSD and with the better compression is fast enough.
 

Bernkastel

Ask me about my fanboy energy!
Sony kinda played it smart and out played MS based on what I read .
Sony can always release a ps5 pro with higher specs couple of years from Now if deemed necessary .

MS can’t change SSDs for the entire generation due to compatibility issues with ( by the time of release) existing XSX .
Unfortunately NeoGaf posts dont dictate console hardware evolution, no matter how smart they pretend to look. Nothing is preventing MS from adding a faster SSD later.
 
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If we are playing the price game of who can price lower than the other wile absorbing the lost money profit than the richer company Microsoft would win there no way Sony can win the war of price attrition Sony need Playstation to survive wile Xbox is a small part of Microsoft it like Microsoft is an Anteater wile Sony is the Ant a price war will hurt Sony more than it will Microsoft.
 

SleepDoctor

Banned
They probably rather see ms price first to see in what ballpark they're pricing then they will go from there and ms will most likely react to it since they said they're "agile" on price.

In the end I don't see more than maybe a $50 difference between the two.
 

D.Final

Banned
There is a reason the ps5 has less tflops, and that's the ssd.
I believe that both machines will be priced similarly. Sony's ssd most cost a premium and so is the extra flops you get with the series x.

I agree.
The games makes the real difference
 

Ten_Fold

Member
I don’t think the lockheart will come this year, also I think Microsoft will undercut Sony for sure. I can see them trying to have more supply and a cheaper price that includes maybe 3 months or a year of gamepass (which is basically a free halo infinite). For less than whatever Sony has.
 
For a long time I felt 449 for the spot for the PS5 but at this point I am ready for/expecting both consoles to be 499 out the gates. I don't see how either could be much lower, considering what we are getting, and I don't think either would go higher.

Sony kinda played it smart and out played MS based on what I read .
Sony can always release a ps5 pro with higher specs couple of years from Now if deemed necessary .

MS can’t change SSDs for the entire generation due to compatibility issues with ( by the time of release) existing XSX .

Are you positive about this? I am not sure that MS is locked into one SSD speed for the entire gen, and I am also not sure the XsX SSD speed isn't already more than fast enough already.
 
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quest

Not Banned from OT
For a long time I felt 449 for the spot for the PS5 but at this point I am ready for/expecting both consoles to be 499 out the gates. I don't see how either could be much lower, considering what we are getting, and I don't think either would go higher.



Are you positive about this? I am not sure that MS is locked into one SSD speed for the entire gen, and I am also not sure the XsX SSD speed isn't already more than fast enough already.
They could go faster on a pro model but I don't think it is worth it. I think most third parties will use the base series x as the base line. The assets to max out the series x will be costly enough the way it is. I can't see ubisoft , EA and crew spending even more. They will just use the series x as a baseline and be done with it.
 

//DEVIL//

Member
For a long time I felt 449 for the spot for the PS5 but at this point I am ready for/expecting both consoles to be 499 out the gates. I don't see how either could be much lower, considering what we are getting, and I don't think either would go higher.



Are you positive about this? I am not sure that MS is locked into one SSD speed for the entire gen, and I am also not sure the XsX SSD speed isn't already more than fast enough already.
Of course not positive but as far as my logical understanding. Assuming Xbox series x pro using a faster better ssd , the new games can’t utilize it the way it’s being done on ps5 because the older sxs won’t be able to run that specific game

specially if the faster ssd is being done to load texture or specific data . I honestly could be wrong here too just my logical thinking
 

D.Final

Banned
I don’t think the lockheart will come this year, also I think Microsoft will undercut Sony for sure. I can see them trying to have more supply and a cheaper price that includes maybe 3 months or a year of gamepass (which is basically a free halo infinite). For less than whatever Sony has.

If exist we are going to see it this June
 

Bubba77

Member
Im going to buy both consoles. But i keep thinking Sony’s SSD push is going to be this gens “power of the cloud” that mostly amounts to nothing. I dont see the better ssd closing the gap on the raw TF diff between the consoles. Mostly both systems SSDs will vastly improve load times. Ive had SSDs in my desktop PCs on 3 builds now so Im glad consoles are getting there.
 

Radical_3d

Member
Sony kinda played it smart and out played MS based on what I read .
Sony can always release a ps5 pro with higher specs couple of years from Now if deemed necessary .

MS can’t change SSDs for the entire generation due to compatibility issues with ( by the time of release) existing XSX .
This is not true. Every game will escalate with drive speeds (due to RAM constraints). This is not only an advantage to the PS5 but for any future versions of both consoles.
 

//DEVIL//

Member
This is not true. Every game will escalate with drive speeds (due to RAM constraints). This is not only an advantage to the PS5 but for any future versions of both consoles.
Not if the game was designed the speed of the ssd . Like jumping fast between worlds and something like the spider man demo back when they showed it . If the game relied on the faster ssd for it to work then no it won’t work with slower hdd or ssd .
Granted this probably will only apply for some first party games Or fully exclusive third party games .

min development3rd party always go with the common base which is a normal ssdin this case and the power of the ps4 . Then it gets upscaled to xsx extra power or faster ssd on ps5
 

Radical_3d

Member
Not if the game was designed the speed of the ssd . Like jumping fast between worlds and something like the spider man demo back when they showed it . If the game relied on the faster ssd for it to work then no it won’t work with slower hdd or ssd .
Granted this probably will only apply for some first party games Or fully exclusive third party games .

min development3rd party always go with the common base which is a normal ssdin this case and the power of the ps4 . Then it gets upscaled to xsx extra power or faster ssd on ps5
Every game will do because (except for PC) every next generation platform has a deficit in RAM that can only get patched via SSD. Therefore every game that aims to be more than a 4K PS4 game will need to manage the resources from the drive as in a cartridge game.
 

Vawn

Banned
PS5's SSD is just a more unique and new piece of technology than anything in the Series X. It is quite possible the PS5 will be a bit higher priced.
 
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