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DF Direct: The Price of PS5 - Are We Looking At A $500 Console?
- Thread starter Anthony Hopkins
- Start date
A lot of it for first couple years was PS4 LEADING the company interns of revenue and profit. But now their imaging, tvs mobile apps not xperia. which is also connected to Sony music. On top of Sony pictures are all making money on their own.
I mean that's pretty obvious no?
PS4 had a massive start thanks to the 399$ pricetag vs Xbox One 499$, not because people wanted to play Knack, Resogun or KZ Shadow Fall.
It's obvious to me but the sentiment here seems to be firmly that power is what most people care about and I strongly disagree.
Assuming PS5 comes in at $499, I think that price would stand for 1 year max, before they bring it down to $399.
Except PS3 was not in the situation PS4 is in now and you're forgetting X1 didn't launch in that many countries. PS is insanely dominant now. The PS5 will outsell Xbox even at a higher pricepoint, especially with BC.
That poll makes lockheart seem like a no-brainer.
Plays BC, cheaper, "good enough" resolution in new games.
IF it's price difference is good enough. 349 for an all digital box that does the main things will be swell
Of course pricepoint will be the biggest or the second biggest selling factor for any upcoming console outside of its launch window.
I get that people here are mainly hardware (and/or corporations) enthusiasts but not being able to realize that mass market is not realisticaly willing to spend that much money on a gaming system looks hilariously obtuse to me.
I get that people here are mainly hardware (and/or corporations) enthusiasts but not being able to realize that mass market is not realisticaly willing to spend that much money on a gaming system looks hilariously obtuse to me.
I feel like both will be priced at $499 at launch
which inevitably gives the edge to PS5 - considering both will be backwards compatible and more people bought into the PlayStation ecosystem this generation. GamePass is obviously an attractive offer for Xbox users but if you don't think Sony is going to be offering a similar service at PS5 launch then you're oblivious
which inevitably gives the edge to PS5 - considering both will be backwards compatible and more people bought into the PlayStation ecosystem this generation. GamePass is obviously an attractive offer for Xbox users but if you don't think Sony is going to be offering a similar service at PS5 launch then you're oblivious
So happy, current gen is probably the last time I'll go multi plat (all), seriously everything is hitting PC and I'm definitely getting a series X. Sans a new Spiderman game I think I can skip a PS5 unless they start making more fighters that are exclusive to the console, but why would they do that? Glad SFV was a bust of a game.
I would like to see this poll, but with a ranked choice instead of pick one.
Last time the components for the PS4 cost $372, manufactured it came to $381 and ended with a retail price of $399, it was sold at a noticeable loss.
This time the components for the PS5 cost ~$450, manufactured it will come to at least $460, it's retail price is likely to be $499, but if they were looking at a similar loss, $479 could be the price... The problem is that $20 is invisible to customers, and losing an extra $80 on the first say 10 Million consoles, is a $800 Million dollar loss, it's just not something that makes sense for Sony IMO.
This time the components for the PS5 cost ~$450, manufactured it will come to at least $460, it's retail price is likely to be $499, but if they were looking at a similar loss, $479 could be the price... The problem is that $20 is invisible to customers, and losing an extra $80 on the first say 10 Million consoles, is a $800 Million dollar loss, it's just not something that makes sense for Sony IMO.
It was not sold at a noticeable loss. Initially it was predicted they'd break even from launch, though in the end they made a small loss. That said, the loss was short lived as it only took a few months for them to reach profitability on every system sold.
People seem to be omitting the context behind Sony's pricing and the history of console pricing though.
Sony could afford to come in at the price they did because their competitor (Xbox One) came in at $100 more expensive for a weaker system. Traditionally even greater losses have been incurred with the launch of new systems, and this was at a time where they didn't have huge profitability and revenue from online and network services Sony have today, that could realistically offset some of the initial loss on hardware.
Here's how other systems stack up.
PS2 was sold at $118 below BoM.
PS3 was sold $200+ below BoM.
Xbox 360 was sold $126 below BoM.
Xbox One was sold $28 above BoM.
PS4 was sold $18 above BoM.
Xbox One X was sold $21 below BoM.
The PS4 sold about 7 Million consoles at a loss, per unit profit wasn't achieved until after the launch year, at about 6 months on the market. We should not expect a similar time table on profitability, AMD isn't in the same situation they were in, the NAND prices are going up instead of down, the smart phone market has evolved to need more components that you'd generally find in consoles, like these NAND components.
The shift of focus from hardware units sold, to monthly user of services numbers, is going to effect how much they are willing to drop the price as well. Looking back 15 to 20 years is probably pointless, I mean PS4 does show a different strategy in play and that was 7 years ago.
If Lockhart is indeed coming, I don't see it being above $349. Then again the Xbox SAD edition was higher than we all thought it should have been.
Nand prices are going up presently, but that doesn't necessarily mean it'll be the same situation later into the year or early next year.
Whilst I'm not saying the PS5 won't be $499 and will definitely come in cheaper, I do think there are several factors that could make Sony more likely to take a loss on the system early on as a loss leader, for example;
- These days a subscription service is required to play online alongside the console itself. Add in a couple of games plus the $60 subscription, and real world costs are higher than past gens beyond the hardware itself.
- The Xbox has Game Pass which essentially alleviates the above issue, since it means their new system will have a bunch of games, first party and otherwise, available day one for only $10, which could be problematic for Sony in terms of value proposition perception.
- Sony makes far more profit on network and services these days, which could compensate for some of the initially incurred hardware losses.
- Quicker install base growth means more profit/revenue from their digital storefront sales of software, DLC, microtransactions etc, something that was less of a benefit or consideration in past gens.
- Quicker install base growth vs the competition means more leeway with third party publishers and exclusives, exclusive DLC, marketing deals etc.
- The Nand shortages could end up being a temporary issue, so avoiding risking potentially slower install base growth or losing more mindshare or marketshare ground to the nearest competitor, for a temporary manufacturing issue, might be seen as a bigger priority.
- A faster rate of adoption has huge mindshare and marketing ramifications, even (or more so) if they sell out of everything they can make early on.
- The more they sell and manufacture, the lower their manufacturing costs get (economies of scale) and the more leeway they have.
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I highly doubt Sony will start including first party games on PSNow at PS5 launch.
Xbox one wasn't at $500 very long, maybe 6 months at most. I remember seeing deals a few weeks after titanfall came out, you could get a xbox one with kinect and titanfall for $400 at the MS store. A few months after that the xbox without kinect came out at $399, and during the holidays of that year the system could easily be had for $350. The xbox one actually outsold the PS4 that holiday (in NA) because its price was so good, vs the $400 PS4. Price is a big factor when buying any console, many other reasons will also factor in as well, but the price of the system is a pretty big one.
I think they need to tbh. It's clear that xcloud/gamepass/stadia type models are going to be a massive part of gaming at some point in time. The ability to throw these games onto smart TVs, or your phone, or any device anywhere will eventually be a huge draw. It's strange because Sony was so far ahead of the curve with PSnow, but now they are just way behind. As part of the ps5 launch sony should really consider a re-branding/relaunch of psnow with a major title or two on there day and date. If they don't do that they should try giving 3 months free with purhcase of a ps5 or something along those lines to let people try it and give some exposure to how streaming works and that psnow is no longer JUST streaming.
I'm gonna be really bummed if 9tf vs 12tf is confirmed, taking in mind that they are gonna cost the same (499).
There is no way they cost the same if that is the outcome.
Still can't believe people compare daily drivers computers many people rely on for work to game consoles lol
Bundles do, back then I picked up this PS3:
And this PS4 at D1 (499€, so another 100€ for a second controller, a PS Camera and Killzone SF, not a bad deal):
I really hope they are going to do the same on PS5 (599€ in this case I guess...).
It's hilarious. Several posters have said "yeah but a console is way more valuable, my entire family uses it it gets way more use". Simply not the case for most people. Basically everybody has and regularly uses a smart phone. Consoles are very popular, but far from a universal thing, not everyone is a gamer.
If the things people care the most about by far are that it's cheap and it plays the games from last gen, then wouldn't it just be smarter to buy a last gen console? They're bound to be cheaper and they will definitely play all the games from last gen.
The most important factor of next gen*.
Of course, this is all based off of preference and everyone differs. I just think it offers and clearer indication of what the majority of people want via a much larger sample group than this site offers. For instance, if it were up to me (it's not), I'd be 100% down for a non-BC model because I don't replay old games - never have and never will. But if I were looking at this, BC is apparently important to a lot of people.
Haven't been following this thread but I don't think specs have been confirmed, right? With that said, if the BOM is now expected to be closer to $450, that means it was lower, which probably means the hardware Sony is packing in the PS5 likely supports the <10tf < Series X console, correct?
Personaly, I would get a lockheart with a disc drive at $300 over the xsx.
Yeah, it's just not what I expected. Everyone likes to be able to play their older games, but to have the vast majority want it to be cheap and play older games, while only ~15-20% cared about either power or exclusives just surprised me.
I dunno, maybe the breakdowns are what they are because we already know the next gen consoles are going to be perhaps the most ambitious power-wise consoles we've ever seen, but the other stuff is still unknown (price and older game support).
Yep, though Microsoft actually makes money on at least some of Sony's subscription services now too. Which means Sony is making less, they also cut the price of Playstation now in half, and PS4 saw a greater than 50% adoption rate for PS+, will PS5 have the same 7 Million users 6 months in? Will half of them have PS+? Will at least twice as many have Playstation now over the initial PS4 launch months via PS5? What was Microsoft's cut of that service? All this and Sony has to take an extra $80 off the system to get it down to $399 over the PS4.
As for NAND prices, with the virus running a muck, those prices likely won't clear up anytime soon. Imo
I would assume it's most surprising because we frequent enthusiast sites regularly, where we can discuss and read commentary, leaks, speculation, etc. for years leading up to a next-gen release.
But in asking my gamer friends and my brother who've never heard of a NeoGAF or a ResetEra and don't follow gaming news (which I feel represents the overwhelming majority of console buyers) I've never heard "I wish this thing had more teraflops" when making their console purchases. It typically comes down to price and selection of games. That said, I'm also surprised that exclusive games don't rank higher than BC here.
He should add this : "Better experience in gameplay" because the others one are a little useless, you can't just pick one...