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DF Direct: The Price of PS5 - Are We Looking At A $500 Console?

Anthony Hopkins

Anthony Hopkins

Banned
Feb 10, 2018
17,534


"Bloomberg is reporting that Sony is facing cost challenges in the construction of the PlayStation 5 - and the chances of a $399 console are receding. So what *are* the challenges in creating the next generation of console hardware - and are we looking at a $500 console?"
 
takriel

takriel

Attempted to circumvent ban with alt account
Banned
Oct 25, 2017
10,221
It's not a big deal. People pay 1000+ for smartphones nowadays.
 
CloseTalker

CloseTalker

Member
Oct 25, 2017
30,509
Absolutely we are. Only way either of them are less than $500 is if MS is willing to eat cost and sell at a loss
 
zombiejames

zombiejames

Member
Oct 25, 2017
11,912
I'm only going to worry about the price when they actually announce a price. There are way too many variables and unknowns.
 
Neoxon

Neoxon

Spotlighting Black Excellence - Diversity Analyst
Member
Oct 25, 2017
85,256
Houston, TX
I already expected $500 for both PS5 & Series X and am preparing accordingly, so bring it on.
 
WhySoDevious

WhySoDevious

Member
Oct 31, 2017
8,447
Nope. I think they're gonna eat the cost to sell it at $400, especially now that they have a real competitor in the XSX.

Their attach rate is usually very high, so they'll make it up there.
 

____

Member
Oct 27, 2017
10,734
Miami, FL
WhySoDevious said:
Nope. I think they're gonna eat the cost to sell it at $400, especially now that they have a real competitor in the XSX.

Their attach rate is usually very high, so they'll make it up there.
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This.

$500 consoles will struggle in terms of mass-appeal and adoption.

If they release at this price, subsidizing them will be an interesting and likely mandatory alternative.
 
plagiarize

plagiarize

Eating crackers
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Oct 25, 2017
27,494
Cape Cod, MA
I was confident they were targeting 399, and I still believe they were. But with the cost issues we're seeing for some of the parts, and the coronavirus situation throwing a large spanner into the works, I now believe that target is going to be missed, and we're looking at something starting with a 4. 449 is possible, but 499 seems more likely now.
 
daybreak

daybreak

Member
Feb 28, 2018
2,415
I've said it before, I'll say it again. A conversion price of $649 CAD or above means these new consoles are DOA in Canada. I know it's a smaller market, but these gaming prices are getting absurd up here in the chilly north.
 
Neoxon

Neoxon

Spotlighting Black Excellence - Diversity Analyst
Member
Oct 25, 2017
85,256
Houston, TX
plagiarize said:
I was confident they were targeting 399, and I still believe they were. But with the cost issues we're seeing for some of the parts, and the coronavirus situation throwing a large spanner into the works, I now believe that target is going to be missed, and we're looking at something starting with a 4. 449 is possible, but 499 seems more likely now.
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But by that logic, shouldn't the Series X also be hit by similar price increases for the same reasons?
 
Marble

Marble

Banned
Nov 27, 2017
3,819
takriel said:
It's not a big deal. People pay 1000+ for smartphones nowadays.
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This is such a dumb and silly take. People also pay 150 for smartphones (because you know, there is actually a choice in smartphones) and people use smartphones a lot more and carry them with them all day long. Also people do a lot more with smartphones. It's a much more valuable device in that regard.
 
alr1ght

alr1ght

Member
Oct 25, 2017
10,046
I'm betting both of them will eat the costs for a year to get better marketshare @ $400. Most of the money comes from game licensing and subscriptions anyways.
 
Remeran

Remeran

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Nov 27, 2018
3,890
takriel said:
It's not a big deal. People pay 1000+ for smartphones nowadays.
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2 problems I see with this:
1. They don't pay that out of pocket most people lease or finance their phones
2. Phones are necessary in the modern world. Video game consoles? nah

I for one will pay 500 even 600 dollars day one to play a new console but I'm an enthusiast. There's no way a mother/father will look at a 500 dollar video game console with the same look they give when they are buying their kid a smart phone.
 
liquidmetal14

liquidmetal14

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Oct 25, 2017
2,094
Florida
I think a 500 console would be less restricted and honestly isn't as offensive as if this was 20 years ago.

Both consoles should come in anywhere at 4-500 and it wouldn't be disappointing. Better for long term if they can go for more power.
 
Deception

Deception

Member
Nov 15, 2017
8,419
$499 is fine especially since this is going to a device that people will use for 6-7 years. Only issue I see is if the price goes up to $599 or more but I highly doubt it will come to that.
 
Zoph

Zoph

Member
Oct 25, 2017
2,510
Increasingly thinking that both PS5 and XSX will launch at $500 and that will become the new norm going forward. Slightly more power and future-proofing for a slightly higher price of admission. It makes more sense as we transition to service-based ecosystems IMO.
 
Lionheart

Lionheart

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Oct 26, 2017
2,839
Winterreise said:
I've said it before, I'll say it again. A conversion price of $649 CAD or above means these new consoles are DOA in Canada. I know it's a smaller market, but these gaming prices are getting absurd up here in the chilly north.
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And the exchange rate was so favourable in 2013 we paid price parity with US. Its gonna go from 399 to 600+. I think it tops out at $600 but that is still extremely high. Bone XX might be $700!
 
8byte

8byte

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Oct 28, 2017
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It'll be $499, or at the very lowest, $449. I think the chances of it being $399 are next to zero, exceptionally slim.

I'm more interested in when the Sony event will happen detailing more info + first look at the console + pre-orders opening up. Wasn't it rumored to be Feb? That's looking less and less likely, so I'm hoping for something by GDC (though I don't expect price info until much later in the year).
 
Goddo Hando

Goddo Hando

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Oct 25, 2017
4,711
Chicago
https://kotaku.com/36-years-of-console-prices-adjusted-for-inflation-1485353267
199q245cirikujpg.jpg
 
STech

STech

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Sep 24, 2018
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I'm starting to see a PS5 in the 400-500€ range and a Xbox SX in the 500-600€ range
 
Dan Thunder

Dan Thunder

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Nov 2, 2017
13,990
Really good point they made about the uptake of digital purchases, that never occured to me when thinking about pricing. If they're able to lop out £10+ of costs per title by selling it digitally rather than retail then it gives them quite a bit of flexibility when it comes to setting a price.
 
CelestialAtom

CelestialAtom

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Oct 26, 2017
6,032
$500 is exactly what I expected and have already saved accordingly. Once Mark Cerny mentioned Zen 2, SSD and NAVI, those three alone had me expect a higher-priced console this time around.
 
Sword Familiar

Sword Familiar

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Jan 9, 2018
4,385
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takriel said:
It's not a big deal. People pay 1000+ for smartphones nowadays.
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Do they pay the same amount for their kids' smartphones though? I don't think the average family would be able to afford a $1000 console, and even $500 might be pushing it. I'll buy it at that price, but I don't expect the mainstream "people" to be as enthusiastic about it.
 
RingRang

RingRang

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Oct 2, 2019
2,442
I've been saying for a while that I won't be surprised at all if the Series X is $600 at launch.

Wouldn't be surprised to see the PS5 at $500.

That would then leave a perfect $400 slot for the Lockhart.
 
Version 3.0

Version 3.0

Member
Oct 27, 2017
11,139
Considering the demand for consoles at launch, both Microsoft and Sony would be burning money if they launch below their cost. At $500, these will sell every unit they can ship for the holidays. They can consider dropping the price next year, if demand drops below supply.

The X factor here is what Microsoft will do with multiple versions, or if they want to be aggressive on price to grab a larger market share off the bat.
 
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