• Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.

How can anyone think the PS5 is costing anything less than 600 - 700 USD?

Vawn

Banned
4) We'll find out soon if it's 'arrogant' Sony ($500 plus) or 'sensible' Sony ($499 or less). They've already said they want to transition players from PS4 to PS5 ASAP. That won't happen for a $600-$700 console - not before, during, or after 'current global events'.

So if it's $499 they're sensible, but if it's $500, they're cocky?

No matter what it's price has nothing to do with cockiness. We already know they've had issues with getting these high-end components in bulk. Thst, along with COVID issues, can very well cause the price to increase. That has nothing to do with being "cocky". It is business.
 

kikonawa

Member
ps2 launched at an equeal to 520 euro so many years ago....
ps3 launched at 599 euro
ps4 launched at 399 euro
all prices are +- 21% tax incl.... i believe ps5 will be around 450 max
 

Moogle11

Banned
Because they have to

Simple as that. Even $500 will be a hard sell for a lot of folks. Especially this fall when many people have been out of work and may be so again of the virus resurgence as many predict.

The profit is in games, DLC, and summer scripting services. They’ll take a loss on hardware sales the first couple of years to build a base like they generally have.

It’s not comparable to PC GPU prices as Nvidea and AMD aren’t also selling games, paid online gaming services etc to recoup losses on hardware. Thus the hardware is sold at a profit markup.
 

Romulus

Member
I think if the economy was better $600 but with the way it is, idk. Probably $500-550.
Though $500 just seems bottom dollar.
Still, I don't think ps5 at $600 is a terrible deal. Not like ps3's $600, here with ps5, you're just getting way more. PS3 didn't compare favorably to PCs when it launched and it took them years to get good looking exclusives, and it sucked at multiplatforms. That architecture was just garbage. PS5 is a different animal at $600.
 
Last edited:

NeoIkaruGAF

Gold Member
Because they want to sell consoles?

I mean... Sure, they can charge 999 bucks on it... but not that many people will buy it and MS and Nintendo will just say: Thanks!

Don't you remember the PS3 $599 fiasco?
Nintendo wouldn’t benefit from it anyway. It’s not like people wanting cutting-edge hardware are going to buy a Switch instead, especially not to play FIFA and the usual titles that are the reason people buy consoles.

If anything, an exceedingly strep launch price would just boost the Pro/X1 market and the second-hand market from early adopters.

But these companies aren’t stupid and they will price accordingly.
 

Arkam

Member
I am fully expecting & preparing for the PS5 to be $500. I think the consumer would accept anywhere in the $400-$600 for the base model of PS5/XSX and final price will be based on expectation of comp pricing than consumer sentiment.
 

Trimesh

Banned
But was it? Maybe it was not about thinking that you're invincible and can charge whatever, but actually not wanting to cut into still strong PS2 sales, they didn't need the PS3 to sell that many from day one, eventually the PS3 still came out on top.

Sadly we have a similiar situation today with the PS4 just being so profitable that they'll want to keep milking it for as long as possible.

If anything, the PS3 is a great illustration of how important price points are. For various reasons, the PS3 ended up being a far more complicated and expensive machine than originally planned, but Sony still made sure they had a sub $500 SKU even if it meant eating a $300 loss on each console they sold. In reality, the PS3 was amazingly cheap for the hardware you were getting, but it initially sold quite poorly anyway.

Sure, there are people (who are likely over-represented on this site) that would pay $600 or $700 for a console, but all the indications are that there aren't nearly enough of them to build the sort of installed base that creates a viable mass-market platform.
 

BadBurger

Is 'That Pure Potato'
The market, especially in these times, won't be able to bear more than 399. 450 tops. Sony will have to eat the loss and make it up with software units - my opinion.
 
I believe Sony got the price right this gen and a small part of why they are in the position they are now is price/value I expect both companies to compete where price is concerned this gen right off the bat and I don't think we should be worrying about mega expensive boxes I think these consoles are going to be sold at a loss imho.
 

docbot

Banned
he market, especially in these times, won't be able to bear more than 399. 450 tops. Sony will have to eat the loss and make it up with software units - my opinion.

I keep reading this, but the PS4 Pro still costs 370 USD/Euro right now, there gotta be some price differentiation and I doubt they'll just slash the PS4 Price in half if they can still make money off of it. Situation would be different if the PS4 was dead in the water.

my wallet hopes you're right, but it seems like wishful thinking. 499 is really the lowest we can hope for.
 
Last edited:

darkinstinct

...lacks reading comprehension.
Next-Gen is shaping up very nicely so far, but I'm a bit irritated how people can still possibly believe that the PS5 will launch with a price of 499 or even 399.

Sony is not just using top of the line components, with a SSD that seems do not even be available for the desktop market, but they are also building more expensive technology in their controller (upping manufacturing costs).

Most importantly the PS4/Pro is still selling well and costs around 449 USD/Euro even today! There is simply no reason for Sony to abandon the PS4 considering it's installation base and they will continue to sell a lots of them well into the future.

The PS5 is build around delivering a really next gen experience with not just visuals, but sound and haptics and they can't possibly meet demand anyway considering that the PS4 will most likely still move more units in the holiday season.

PS5 will be great, no doubt about it, but don't kid youself, there really is now way they are going to launch this at anything but a very premium price.

It might be frustrating if you don't have the necessary funds, but I wouldn't be suprised if they launched at 599 or even more, considering people are flocking to buy new iphones for over 1000 usd/euros.
Clearly you have no clue what hardware actually costs. Educate yourself at ifixit or comparable sites.
 
PS5 will certainly not be a cent/penny over $499 and like I previously said $399 is not out of the question given what the PS4 has done following after the disaster that was PS3. My evidence is Shawn Layden's D.I.C.E speech from Feb 2019 is below. Watch for 2-3 minutes after the 14:00 mark.



$399 is absolutely out of the question. Yes. The PS4 launched at $399, but that was 7 years ago. The PS5 has tech that even high-end PCs (up to $5,000) don't have. You can dream that the PS5 will launch at $399, but that's not going to happen. I don't want people to have high expectation that a $399 PS5 is even remotely possible. It's not.
 
I think it will be $499 - $599. I probably won't buy it for awhile anyway. Still plenty happy with my PS4 Pro. However, it always comes down to the games and right now we have no idea what we'll be playing at launch on PS5. If it's just Assassin's Creed Valhalla and Last of Us 2 with better graphics, I'll pass regardless of price. If it launches with Bloodborne 2, Horizon 2 and a couple brand new IPs........hmmm

I hear ya! If you're looking for 4 PS5 exclusives, then might as well wait 18 months after launch.
 

THE:MILKMAN

Member
$399 is absolutely out of the question. Yes. The PS4 launched at $399, but that was 7 years ago. The PS5 has tech that even high-end PCs (up to $5,000) don't have. You can dream that the PS5 will launch at $399, but that's not going to happen. I don't want people to have high expectation that a $399 PS5 is even remotely possible. It's not.

Let's see how it pans out. I see in the main thread there is another analyst report from Japan predicting 15 million PS5 sales for its first full year. This would be higher sales than PS4's 14.8 million for the same period. Can't do that at a higher price than PS4 (much higher in Europe).

I could see them using Europe to subsidise the rest of the world like they basically did with PS3 if it really is costing a lot to build. Maybe even delay the EU release until Spring. At the end of the day if it comes in at £499 I'll just wait a few more months if needs be for the big price drop like with PS3 (£425 > £299 in 6 months).
 

BlackTron

Member
It will be too much for most people to afford but that's OK because they will be able to sell every unit they can ship for the first year or so anyway.

If you can't afford to be one of them, buy a PS4 and then a PS5 later when the cost goes a bit lower and supply is more plentiful.

PS5 is not replacing PS4 overnight. The launch isn't a revolution, it's a VIP party.
 
If they have stock issues than i can realistically see them sellin above the 500 price point but once corrected have it come down to 499 or less. There are two main ways Sony makes money. They sell A LOT of software and A LOT of subscriptions. The reason they can rely on this is because thier user base is outrageous! They will do everything in thier power to get the PS5 in every home possible. This is also why i dont think Sony will support Smart Delivery as much as it sucks to say.
 

Orta

Banned
By the time you have bought the console (lets say $500), a game or two, maybe a 12 month psn or xbox live sub and perhaps an extra controller, I'd imagine an initial outlay of just under $750 wouldn't be an unreasonable estimate.
 
Let's see how it pans out. I see in the main thread there is another analyst report from Japan predicting 15 million PS5 sales for its first full year. This would be higher sales than PS4's 14.8 million for the same period. Can't do that at a higher price than PS4 (much higher in Europe).

I could see them using Europe to subsidise the rest of the world like they basically did with PS3 if it really is costing a lot to build. Maybe even delay the EU release until Spring. At the end of the day if it comes in at £499 I'll just wait a few more months if needs be for the big price drop like with PS3 (£425 > £299 in 6 months).

It's a smart move on your part to wait it out a few months, for one, to see if there are any lingering issues with the new hardware (there always are), and two, for a price drop, which I don't believe we will see one in the first couple of years. You may see promotional bundles (system and a game or an extra controller), but not a price drop. You shouldn't really compare it to the PS3, which was grossly miss-priced at launch. On a final note, I'm not sure if that analyst you quoted release his estimates before or after the pandemic, because there is no way that Sony can ship 15 million units the first 12 months in this current climate.
 
Last edited:

Rayderism

Member
You know, if Sony would have made it BC with PS1, PS2 and maybe even a small amount of PS3 (with a promise of PS3 compatibility updates...or something like that), as well as the confirmed PS4 support, they could have charged just about anything they wanted for a PS5 and people would be all over it.

But I'll bet they'll cheese out on the optical drive again, just like they did on PS4, and it won't even read CD's, which will instantly kill any hopes of true BC with PS1, as well as something like 150 PS2 games that were on CD. Because otherwise, there would be no excuse to NOT include PS1 and PS2 BC (and I mean disk support, not just some extremely limited digital download library). A lack of PS3 BC could be explained away easily enough and most people would accept that, but just about any modern PC can emulate PS1/2, don't even tell me a PS5 couldn't. So their easy-out will be not providing any CD support. What do you bet that will be exactly what they'll do to hose us out of PS1/2 support?

As it stands now, I have to have a PS2, a PS3 and a PS4 to play my entire Playstation library of PS1/2/3/4 games. At best, knowing only what we know now, I'll only be able to kick out the PS4 (the newest of the "legacy" consoles) once getting a PS5. I was really hoping that I'd be able to at least kick out the PS2 and PS4 and just have a PS3 and PS5 under the TV to maintain compatibility with all Playstation games. But it doesn't seem like it's going to work out that way.

That said, any more than $500 for PS5 and I'll just wait as long as I can before I get one. The practicality just isn't there.
 
Last edited:

Trimesh

Banned
But I'll bet they'll cheese out on the optical drive again, just like they did on PS4, and it won't even read CD's, which will instantly kill any hopes of true BC with PS1

The strange thing is that I took apart the PS4 optical block and it contains a 780nm IR laser diode for reading CDs - but the internal drive firmware appears to have been programmed never to use it. When you put a CD into the drive, it tries to read it with the BR laser, then the DVD laser and then it stops. Since the amount of electronics needed to process CD signals is almost negligible by modern standards I can only assume this omission was done for licensing reasons.
 

ToadMan

Member
I suspect not only will the PS5 be less than $600, I think it will come in less than Xbox again.

I think Sony will hit $400 to $449 and MS are going for $499 ish.

I say this because Sony have somewhat lower spec CPU and GPU and their SSD is just based on M.2 SSD tech. Sony have added custom hardware to get improved performance but the SSD memory is still the off the shelf stuff Samsung sells. Sony will basically eat the cost of that custom componentry.

MS on the other hand have a slightly higher spec CPU, GPU and memory which will drive their cost slightly higher, coupled with similar spec SSD but without the same level of hardware customisation as Sony have.
 
Thinking it will be more than $500 is absurd. Right or wrong, video game console market has demonstrated time and again there is a soft ceiling around $400 or so that is basically the sweet spot to maximize sales volume. Taking inflation into account we could perhaps justify $500 if the economy were healthy and expect customers to be willing to pay that en masse. However, we are in the middle of a severe CV19 triggered economic recession (verging on depression) that is likely going to extend deep into 2021. Even $500 under such conditions is pushing it. Going beyond that would likely tank launch sales. If Sony wants to turn the PS5 into a niche product then that's the quickest way to do it (applies equally to Xbox).
 

ZywyPL

Banned
Because consoles are not PCs with 65% profit margins. And they are just a platform to sell the software where all the profit actually is, so Sony and MS can even take a hit on each unit, as it will be fully covered within few months after the users buy two or three games, or a yearly XBL/PSN subscription. And everyone saw how the 599 turned out, and no one wants to repeat that scenario ever again.
 

Mhmmm 2077

Member
Sony can surely afford selling PS5 without profit for a year or two or even at a loss, after all all that lost money from hardware sales they will make back in software/subscription sales. And after 2-3 years the hardware will be cheaper, maybe even with a 10% price cut they could finally sell it with profit. Though I don't know shit.
 

StreetsofBeige

Gold Member
If there's any time for Sony or MS to subsidize consoles it's starting now.

With so much digital revenue from getting 30% of digital sales, the money from this should be absurdly ramping up just like EA and UBI brag about record microtrans.

For every disc sale that disappears from EB, Best Buy and Amazon, the lost profit there basically goes right to Sony and MS instead. And digital sales are increasing every year as a % of sales.

Really comes down to if MS and Sony want bank that digital money as big profit boosters, or use some of that to help subsidize gamers $100+ on a console.

Put it this way. For every $60 game you've switched from disc to digital this gen (and going forward), that's $18 into MS' and Sony's corporate account.
 
Last edited:
Top Bottom