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Deleted member 10193

User requested account closure
Banned
Oct 27, 2017
1,127
It's all stemming from a single article this year that said Sony was working with AMD on Navi. I don't buy it being a full fat Navi.
 

Deleted member 35598

User requested account closure
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Dec 7, 2017
6,350
Spain
I mean, you're definitely speculating. However, the notion of them going for a linear upgrade instead of some weird wild card side step is at least supported by common sense, if not outright evidenced by thing such as hardware release schedules from AMD.

Yeah, "components" right now are more expensive off the shelve, but that doesn't really impact bulk buyers like Sony in anything close to the same way. Fact is, you have no real insight into this process, so it's completely illogical to draw any conclusions based on it. As such, it's not really a good argument against a 10-12TF machine being possible at 399 when all signs (precedence, certain hardware becoming available) seem to point that way.

Which signs ? You're basic your logic on assumptions and speculations from folks on a forum ! But you have NOTHING concrete.

Just the price of Xbox One X that came last at 499$ should be an indication than cutting edge techology doesn't come cheap. The latest Iphones were released and they are more expensive than ever before ! And you expect cutting edge tech to be the same price as in 2013 ? You're dreaming, but it's ok.
 
Oct 26, 2017
6,151
United Kingdom
Bro AMD Navi is around 24 TF on 7nm. it's safe to assume the console version of a gpu based on that to be between 10 to 14 TF . Nothing extraordinary or wowww about it .

Tales from your ass.

Not a single Navi based chip has been manufactured so I have no idea where you get that 24TF figure...

...oh, that's right. From your ass, dude.

Pls don't spread misinformation as fact.
 

jroc74

Member
Oct 27, 2017
28,992
Which signs ? You're basic your logic on assumptions and speculations from folks on a forum ! But you have NOTHING concrete.

Just the price of Xbox One X that came last at 499$ should be an indication than cutting edge techology doesn't come cheap. The latest Iphones were released and they are more expensive than ever before ! And you expect cutting edge tech to be the same price as in 2013 ? You're dreaming, but it's ok.
I think that price was more due to the ram than anything really cutting edge.

When the ram amount was listed, and we were guessing what the price would be, some of us said at a minimum it was going to be $450.
 

Gamer17

Banned
Oct 30, 2017
9,399
User Warned: Hostility towards another member
Tales from your ass.

Not a single Navi based chip has been manufactured so I have no idea where you get that 24TF figure...

...oh, that's right. From your ass, dude.

Pls don't spread misinformation as fact.
From the paper they released for navi . That's all we have to look at this moment (many links but here is one : https://www.tweaktown.com/news/55875/amd-launch-monster-navi-10-2019-next-gen-ram/index.html)
Edit : since I was wrong it was warranted for you to tell me takes from my ass lol .thanks for correcting me .
 
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Oct 26, 2017
6,151
United Kingdom
From the paper they released for navi . That's all we have to look at this moment (many links but here is one : https://www.tweaktown.com/news/55875/amd-launch-monster-navi-10-2019-next-gen-ram/index.html)
.what the fuck is the matter with u ?you know what .don't respond to me ever again.asshole.thanks

The 24TF number is speculation on a dual Vega 10 setup. Not even Navi.

You didn't even read the article you quoted but just saw a number and ran away with it.

We don't know anything about Navi at the moment much less its performance, so again pls educate yourself a little better and refrain from posting speculation as facts. It's tantamount to misinformation.
 

Gamer17

Banned
Oct 30, 2017
9,399
The 24TF number is speculation on a dual Vega 10 setup. Not even Navi.

You didn't even read the article you quoted but just saw a number and ran away with it.

We don't know anything about Navi at the moment much less its performance, so again pls educate yourself a little better and refrain from posting speculation as facts. It's tantamount to misinformation.
Then I guess I made a mistake haha .sorry will edit that post.i was sure I was right :(
I swear I remember somewhere people were discussing the 24 TF entry power.but since I can't find it ,I will take the L lol
 
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Heckler456

Banned
Oct 25, 2017
5,256
Belgium
Which signs ? You're basic your logic on assumptions and speculations from folks on a forum ! But you have NOTHING concrete.

Just the price of Xbox One X that came last at 499$ should be an indication than cutting edge techology doesn't come cheap. The latest Iphones were released and they are more expensive than ever before ! And you expect cutting edge tech to be the same price as in 2013 ? You're dreaming, but it's ok.
The Xbox One X costs as much as it does because of the amount of ram in it, more than anything. It's not because of anything that contributes to what is commonly understood as "tflops". RAM costs as much as it does because of a world-wide shortage that's set to go down come mid-2019.

Also, phones are sold at profit. And a ridiculous amount at that too.

And you calling me out on me basing my logic on assumptions and speculation is really quite rich.

Anyway, I'm done with this conversation. I'm sure you comments will age really well, though, so it wasn't a total waste of my time.
 
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Deep Friar

Member
Mar 17, 2018
779
That's not doubling down. That's stepping back your prediction of "there is no way this console will be 12TF, it's impossible! Also, the PS5 will be a hybrid portable device of 6TF, which by the way, is possible!".

At any rate, now your prediction is that they're going to offer financing plans on their consoles? You must be trolling at this point.

Also, as has been pointed out before, a 5 TF portable machine is literally technologically infeasible due to heat dissipation. For example, the Iphone XS, which is a one thousand dollar phone at best, is said to only theoretically be capable of "5TF" (which isn't really saying much for a whole host of reasons, but let's assume that's correct), and probably runs waay below that while running games. So again, at best, you're looking at a machine that's marginally faster than a PS4, and Sony is almost definitely not going to tie their main machine to something like this.

As for the "you again" dig, if you can't handle the heat, don't play in the kitchen. This is a forum, where people discuss things, and I'm free to call you out just as much as you're free to keep saying what you're saying.

Thank you! Just because it's a different idea doesn't mean we should entertain it. It's not going to happen. Period. End of story.
 

Wackamole

Member
Oct 27, 2017
16,935
I am not enthused by what Sony has been doing in the marketplace from the middle of this generation on, and the last time they acted so arrogant and launched a system, it was pretty rough. I can't imagine their current strong anti-consumer philosophy is going to allow for a truly must-own piece of hardware for next-gen. But I can't say I'm surprised they are planning bringing new hardware to the market.
Wut? Are you talking about another company? They did so much to satisfy customers and developers.
Are you one of those Russian bots? Just here to try and create chaos for the hell of it?
 

Deep Friar

Member
Mar 17, 2018
779
The Xbox One X costs as much as it does because of the amount of ram in it, more than anything. It's not because of anything that contributes to what is commonly understood as "tflops". RAM costs as much as it does because of a world-wide shortage that's set to go down come mid-2019.

And you calling me out on me basing my logic on assumptions and speculation is really quite rich.

Anyway, I'm done with this conversation. I'm sure you comments will age really well, though, so it wasn't a total waste of my time.

Remind me to @ him when the reveal happens. I need to know the response. There's speculation, and then denying concrete facts.
 

Deleted member 35598

User requested account closure
Banned
Dec 7, 2017
6,350
Spain
I guess it depends how much Sony are prepared to lose and pass onto consumers - ie we might see a $450 with a larger loss at launch this gen? Anyway, I truly believe anything over 10TF with good bandwidth and reasonable memory will be enough of a leap.

Those are the old days. You can't sell hardware at loss these days too risky. And Sony shareholders would go into panic mode. Not a single of the console manufacturer is selling at loss. So it won't happen.
 

DevilMayGuy

Member
Oct 25, 2017
13,577
Texas
Those are the old days. You can't sell hardware at loss these days too risky. And Sony shareholders would go into panic mode. Not a single of the console manufacturer is selling at loss. So it won't happen.
Early on I think they were selling at small enough of a loss that a single game or accessory purchase brought it up to profitable, but maybe I'm misremembering. The odds of any manufacturer selling at a significant loss are slim, indeed.
 

goonergaz

Member
Nov 18, 2017
1,710
Those are the old days. You can't sell hardware at loss these days too risky. And Sony shareholders would go into panic mode. Not a single of the console manufacturer is selling at loss. So it won't happen.

?? They went in this gen without being a clear leader, losing money badly as a company and taking a small loss on each PS4 sold.

They absolutely might take a hit at the start of next gen...they are in a strong position both financially and market-share, if they feel getting XfeatureX is worth it for XlossX they will do it.
 

Heckler456

Banned
Oct 25, 2017
5,256
Belgium
Early on I think they were selling at small enough of a loss that a single game or accessory purchase brought it up to profitable, but maybe I'm misremembering. The odds of any manufacturer selling at a significant loss are slim, indeed.
I don't know. If customer retention is their goal, and it seems like it will be with the immense amount of profits garnered from services like PS+, then it might be entirely justified to take a heavier-than-last-time loss on their machines. Plus, Sony wasn't really in a great position at the start of this gen. They are now. And let's not forget that this a company that the gen before this one sold their console at 600 dollars while still eating 200 dollars per console sold. It wouldn't surprise me that much to see them eating like 100 dollars of loss on a 400 dollar sale when we now have PS+ and everything surrounding it bearing the load.
 

Deleted member 35598

User requested account closure
Banned
Dec 7, 2017
6,350
Spain
?? They went in this gen without being a clear leader, losing money badly as a company and taking a small loss on each PS4 sold.

They absolutely might take a hit at the start of next gen...they are in a strong position both financially and market-share, if they feel getting XfeatureX is worth it for XlossX they will do it.

They won't take a loss because hardware business is different these days. And hardware manufacturers just don't take loss anymore. It's not worth it. Sony is an great financial situation and they are not going to jeopardize everything.

Selling at loss is a huge risk and it eats up your profits and margin, something that is NOT in line with shareholders expectations.
 

Deleted member 21709

User requested account closure
Banned
Oct 28, 2017
23,310
They won't take a loss because hardware business is different these days. And hardware manufacturers just don't take loss anymore. It's not worth it. Sony is an great financial situation and they are not going to jeopardize everything.

Selling at loss is a huge risk and it eats up your profits and margin, something that is NOT in line with shareholders expectations.

Sony is not going to release the PS5 for $599 or more.
 

Heckler456

Banned
Oct 25, 2017
5,256
Belgium
They won't take a loss because hardware business is different these days. And hardware manufacturers just don't take loss anymore. It's not worth it. Sony is an great financial situation and they are not going to jeopardize everything.

Selling at loss is a huge risk and it eats up your profits and margin, something that is NOT in line with shareholders expectations.
What hardware manufacturers are you talking about? We don't know anything about whether or not the X or Pro sold at a loss or at cost, and I personally don't know if the Xbox One sold at loss or cost, but I definitely know that the PS4 and every console before that sold at a loss.
 
Oct 26, 2017
9,827
I don't know. If customer retention is their goal, and it seems like it will be with the immense amount of profits garnered from services like PS+, then it might be entirely justified to take a heavier-than-last-time loss on their machines. Plus, Sony wasn't really in a great position at the start of this gen. They are now. And let's not forget that this a company that the gen before this one sold their console at 600 dollars while still eating 200 dollars per console sold. It wouldn't surprise me that much to see them eating like 100 dollars of loss on a 400 dollar sale when we now have PS+ and everything surrounding it bearing the load.
Dude, doing that are into pretty much everything the PS and the PS2 earned them. Neither Microsoft or Sony will go with losses that big ever again. I'd say it's safe to expect Sony to continue what makes them successful right now and will in the future
 

Deep Friar

Member
Mar 17, 2018
779
They won't take a loss because hardware business is different these days. And hardware manufacturers just don't take loss anymore. It's not worth it. Sony is an great financial situation and they are not going to jeopardize everything.

Selling at loss is a huge risk and it eats up your profits and margin, something that is NOT in line with shareholders expectations.

I don't know why you're saying this. PS+ subscriptions and game sales will help offset losses. It's not all about hardware.
 

ByWatterson

▲ Legend ▲
Banned
Oct 28, 2017
2,302
Do people actually enjoy arguing about nonexistent consoles' horsepower? This entire debate confuses me.
 

Heckler456

Banned
Oct 25, 2017
5,256
Belgium
Dude, doing that are into pretty much everything the PS and the PS2 earned them. Neither Microsoft or Sony will go with losses that big ever again. I'd say it's safe to expect Sony to continue what makes them successful right now and will in the future
Not sure what you were trying to say with that first sentence.

And I'm not saying they'll ever go for losses that big again. But when they can spring like 40-60 dollars or however much it was while in dire straits at the start of this gen, then I don't see why they couldn't go for 100 dollars when are raking in money hand over fist with their immensely successful first party repertoire and PS+ subscriptions.
 

Hieroph

Member
Oct 28, 2017
8,995
Do people actually enjoy arguing about nonexistent consoles' horsepower? This entire debate confuses me.

There is a very real possibility we might see PS5 launched in November 2019, just a year and a month from now. And if it's not that, it's still becoming more real every day. People like to look forward and think about what kind of a system they will be playing on a couple of years from now.
 

New Fang

Banned
Oct 27, 2017
5,542
There is a very real possibility we might see PS5 launched in November 2019, just a year and a month from now. And if it's not that, it's still becoming more real every day. People like to look forward and think about what kind of a system they will be playing on a couple of years from now.
There is no chance of that happening. None.
 
Oct 26, 2017
9,827
Not sure what you were trying to say with that first sentence.

And I'm not saying they'll ever go for losses that big again. But when they can spring like 40-60 dollars or however much it was while in dire straits at the start of this gen, then I don't see why they couldn't go for 100 dollars when are raking in money hand over fist with their immensely successful first party repertoire and PS+ subscriptions.
Oh I was saying that the losses Sony took with the PS3 nearly wiped out whatever profit they made off of their previous consoles. Sorry for not clarifying that better

That all depends on whether or not it's even necessary to do so. Just because you can do something doesn't mean you should, especially when it may not lead to greater growth and profits in the future. Also, were they really in the crapper in the beginning of this generation? I'm pretty sure the company overall was beginning to recover a bit before then, unless I'm mistaken
 

Deleted member 35598

User requested account closure
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Dec 7, 2017
6,350
Spain
I don't know why you're saying this. PS+ subscriptions and game sales will help offset losses. It's not all about hardware.

It doesn't matter. Did you check shares prices for Sony ? It's been going up a lot in the last years. That means investors are confident putting their money and expecting returns. Sony is not going to sell at loss. It doesn't make business sense.

People need to forget the era when consoles were sold at loss. It won't happen. You want 12 TF console you will pay for it 499$ or more OR you can finance it. Those will be the two options available.
 

Heckler456

Banned
Oct 25, 2017
5,256
Belgium
Oh I was saying that the losses Sony took with the PS3 nearly wiped out whatever profit they made off of their previous consoles. Sorry for not clarifying that better

That all depends on whether or not it's even necessary to do so. Just because you can do something doesn't mean you should, especially when it may not lead to greater growth and profits in the future. Also, were they really in the crapper in the beginning of this generation? I'm pretty sure the company overall was beginning to recover a bit before then, unless I'm mistaken
Ah alright, thanks for clarifying. Yeah, the PS3 really was a huge disaster.

I think we had news stories going "Sony has X% chance of going bankrupt!" for a little bit into this generation, but I could be mistaken. The point remains though, they are very healthy now while they decidedly weren't at the start of this generation, and as such, that puts them in a far better position to eat some costs if they wanted to go that route.

And yeah, sure, it could be that they deem it unnecessary to go with a powerful machine, but on the other hand, there are a few factors to consider that may point to them wanting to provide the most powerful console they can possibly afford. There's the always looming threat of console wars, of course. It pays for games to look as good as possible on your platform, otherwise they wouldn't have released the Pro, or market their games using the Pro. Speaking of the Pro, I'm sure its success speaks to how interested people are in more powerful hardware. There's also the fact that the biggest AAA games are still making immensely demanding games, like for example AC Odyssey, which is making the base console sweat. Then there's Microsoft coming right out and saying they're committing to being the most powerful machine on the market. And on Sony's side, you have their seeming commitment in terms of virtual reality, which really benefits from a ton of horse power. And then, like I said, you have services like PS+ that could well be enough to fund this type of loss on its own multiple times over, given its 30 million subscribing base with a conservative estimate being them raking in a billion a year on that alone.

Anyway, my original point was more to negate the notion that it's somehow impossible for them to do it if they wanted to.
 

goonergaz

Member
Nov 18, 2017
1,710
They won't take a loss because hardware business is different these days. And hardware manufacturers just don't take loss anymore. It's not worth it. Sony is an great financial situation and they are not going to jeopardize everything.

Selling at loss is a huge risk and it eats up your profits and margin, something that is NOT in line with shareholders expectations.

Based on what, you can't just state something like it's fact with nothing to back it up? Guess what, all evidence suggests the most recent launches (PS2, PS3 and PS4) all launched at a loss and Sony had shareholders. So that's my evidence to suggest it may happen again, other than "because I say so" please elaborate.
 

New Fang

Banned
Oct 27, 2017
5,542
Actually it's possible.
It's not. We are only having this conversation because some people want it to be true. We would have credible leaks about the hardware specs by now if it were coming out a year from now. We'd only be about 4 months from the formal announcement. In 2018 you don't announce things like this without leaks. We will all know when new consoles are truly on the brink of being announced, just like we did in 2013.
 
Oct 26, 2017
6,151
United Kingdom
Then I guess I made a mistake haha .sorry will edit that post.i was sure I was right :(
I swear I remember somewhere people were discussing the 24 TF entry power.but since I can't find it ,I will take the L lol

I apologise for the initial tone of my email, too. I did come across a little to belligerant, which wasn't necessary at all.

I guess I often get frustrated by the sheer amount of misinformation posters on the forum spread.

I respect that yours was an honest mistake though and I give you kudos for owning up to it.

That kind of maturity is seeming ever more rare on this forum.
 

Deleted member 35598

User requested account closure
Banned
Dec 7, 2017
6,350
Spain
Based on what, you can't just state something like it's fact with nothing to back it up? Guess what, all evidence suggests the most recent launches (PS2, PS3 and PS4) all launched at a loss and Sony had shareholders. So that's my evidence to suggest it may happen again, other than "because I say so" please elaborate.


As I said you can't look at what happened in the past and expect the same thing, because the world had changed since then. The narrative back then was "you need to sell hardware at loss", because the idea was to make volume in order to make lots of revenue. But shareholders were starting to put pressure to have profits and not just revenue. That's why IBM, HP or Dell moved away from some hardware businesses to focus on margin rich hardwares ( storage or servers ) or services.

But there is one actor that change all that : Apple. Apple showed that narrative wasn't right, you can sell hardware by actually making profits. Lots of profits. And you can see that this Apple trend moved into the videogames industry. When Sony launched the PS3 the cost of the machine was 800$ ! But as you know it was sold 600$. Could you imagine the loss ? The PS4 was making profits, that's how Sony turned things around. This is what Kaz said :

"From a profitability perspective, PS4 is also already contributing profit on a hardware unit basis, establishing a very different business framework from that of previous platform businesses"

So the message is clear : the days of selling platforms ar loss the old way is gone.

So yes PS+ brings more money, but the plan is not to use that money to sell a console at loss ! The idea is to use the money to re-invest it in new services and a better infrastructure.

The only reason you would sell at loss a hardware today, is if you want to enter a new market. Google and Amazon did that with their tablets for example. But there is no need for Nintendo, Microsoft or Nintendo to do so.


Source : https://www.google.es/amp/s/www.pol...4344/ps4-already-profitable-for-sony-ceo-says
 
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Gamer17

Banned
Oct 30, 2017
9,399
I apologise for the initial tone of my email, too. I did come across a little to belligerant, which wasn't necessary at all.

I guess I often get frustrated by the sheer amount of misinformation posters on the forum spread.

I respect that yours was an honest mistake though and I give you kudos for owning up to it.

That kind of maturity is seeming ever more rare on this forum.
I know what u mean man .people were talking about that number with so much confidence that I had believed it .and when I googled Navi teraflops that link that talks about 24 is the first link .so I was kinda sure without even double checking .

Anyways I guess Feb 2019 at AMD conference it will be the first time we hear about Navi performance.lets see what they r cooking .
 

DevilMayGuy

Member
Oct 25, 2017
13,577
Texas
It doesn't matter. Did you check shares prices for Sony ? It's been going up a lot in the last years. That means investors are confident putting their money and expecting returns. Sony is not going to sell at loss. It doesn't make business sense.

People need to forget the era when consoles were sold at loss. It won't happen. You want 12 TF console you will pay for it 499$ or more OR you can finance it. Those will be the two options available.
You have a bad habit of posting nonsense as facts with no basis in reality whatsoever and then acting like it's somehow a logical conclusion. You have been consistently terrible at shoring up your position in this thread. Make extraordinary claims, provide extraordinary backing.

"Please ignore 20 years of data, here's an article that I bookmarked" is not extraordinary evidence.
 
Oct 26, 2017
6,151
United Kingdom
I know what u mean man .people were talking about that number with so much confidence that I had believed it .and when I googled Navi teraflops that link that talks about 24 is the first link .so I was kinda sure without even double checking .

Anyways I guess Feb 2019 at AMD conference it will be the first time we hear about Navi performance.lets see what they r cooking .

Yeah, i'm really lookig forward to it. Hoping they announce some Navi products with some specs. but we'll see.
 
Oct 29, 2017
329
Hopefully whatever Sony push out next feels like a generational leap in terms of hardware, playing games like GoW excites me as to what next-gen will look like. Not sure how they'll come in at a good price point for consumers if we want a big jump in specs.
 

goonergaz

Member
Nov 18, 2017
1,710
As I said you can't look at what happened in the past and expect the same thing, because the world had changed since then. The narrative back then was "you need to sell hardware at loss", because the idea was to make volume in order to make lots of revenue. But shareholders were starting to put pressure to have profits and not just revenue. That's why IBM, HP or Dell moved away from some hardware businesses to focus on margin rich hardwares ( storage or servers ) or services.

But there is one actor that change all that : Apple. Apple showed that narrative wasn't right, you can sell hardware by actually making profits. Lots of profits. And you can see that this Apple trend moved into the videogames industry. When Sony launched the PS3 the cost of the machine was 800$ ! But as you know it was sold 600$. Could you imagine the loss ? The PS4 was making profits, that's how Sony turned things around. This is what Kaz said :

"From a profitability perspective, PS4 is also already contributing profit on a hardware unit basis, establishing a very different business framework from that of previous platform businesses"

So the message is clear : the days of selling platforms ar loss the old way is gone.

So yes PS+ brings more money, but the plan is not to use that money to sell a console at loss ! The idea is to use the money to re-invest it in new services and a better infrastructure.

The only reason you would sell at loss a hardware today, is if you want to enter a new market. Google and Amazon did that with their tablets for example. But there is no need for Nintendo, Microsoft or Nintendo to do so.


Source : https://www.google.es/amp/s/www.pol...4344/ps4-already-profitable-for-sony-ceo-says

Saying you can't use history is ridiculous as that's all you can go by! Also, you're comparing apples to oranges. IBM, Dell and HP don't make the money on software Sony does so it makes sense. And PS4 was sold at a loss yet has made Sony lots of money.

You're quote does nothing more than say 'previously we sold at a much bigger loss' (which we all know - PS3 was a big mistake, I'm not suggesting they go back to that!)

Point is, if Sony want to sell at a profit at launch then the machine they launch will have to be underpowered compared to what they could do with a minimal loss that breaks even on the purchase of one or 2 games. Bearing in mind that from that point you're in profit...every game, PS+, accessory sold from then is gravy.

Time will tell but I'm confident Sony would be prepared to sell at a loss at launch.
 

Deleted member 35598

User requested account closure
Banned
Dec 7, 2017
6,350
Spain
You have a bad habit of posting nonsense as facts with no basis in reality whatsoever and then acting like it's somehow a logical conclusion. You have been consistently terrible at shoring up your position in this thread. Make extraordinary claims, provide extraordinary backing.

"Please ignore 20 years of data, here's an article that I bookmarked" is not extraordinary evidence.

That's a pointless post you made. You contribute to nothing. You're the one ignoring facts here. If you choose to do so fine. But don't pretend I'm making false claims !

You are ready to say here that a company like Sony that is is in incredible financial health will "suddenly" turns back to old habits of selling console at loss ? Something that nearly destroyed the company ? If there is one extraordinary claim here, it's to say Sony would sell the PS5 at loss...
 

goonergaz

Member
Nov 18, 2017
1,710
That's a pointless post you made. You contribute to nothing. You're the one ignoring facts here. If you choose to do so fine. But don't pretend I'm making false claims !

You are ready to say here that a company like Sony that is is in incredible financial health will "suddenly" turns back to old habits of selling console at loss ? Something that nearly destroyed the company ? If there is one extraordinary claim here, it's to say Sony would sell the PS5 at loss...

But you're ignoring the fact that Sony was losing haemorrhaging money yet launched with a loss-leading PS4 which has turned the companies fortunes around!? Why wouldn't they repeat that formula?
 

Heckler456

Banned
Oct 25, 2017
5,256
Belgium
As I said you can't look at what happened in the past and expect the same thing, because the world had changed since then. The narrative back then was "you need to sell hardware at loss", because the idea was to make volume in order to make lots of revenue. But shareholders were starting to put pressure to have profits and not just revenue. That's why IBM, HP or Dell moved away from some hardware businesses to focus on margin rich hardwares ( storage or servers ) or services.

But there is one actor that change all that : Apple. Apple showed that narrative wasn't right, you can sell hardware by actually making profits. Lots of profits. And you can see that this Apple trend moved into the videogames industry. When Sony launched the PS3 the cost of the machine was 800$ ! But as you know it was sold 600$. Could you imagine the loss ? The PS4 was making profits, that's how Sony turned things around. This is what Kaz said :

"From a profitability perspective, PS4 is also already contributing profit on a hardware unit basis, establishing a very different business framework from that of previous platform businesses"

So the message is clear : the days of selling platforms ar loss the old way is gone.

So yes PS+ brings more money, but the plan is not to use that money to sell a console at loss ! The idea is to use the money to re-invest it in new services and a better infrastructure.

The only reason you would sell at loss a hardware today, is if you want to enter a new market. Google and Amazon did that with their tablets for example. But there is no need for Nintendo, Microsoft or Nintendo to do so.


Source : https://www.google.es/amp/s/www.pol...4344/ps4-already-profitable-for-sony-ceo-says
1. To use Apple as an example, the new Iphone costs in the neighborhood of 400 dollars to produce, but is sold for more than twice that. To put Sony or Microsoft in that same category is profoundly misleading.
2. Investors wanting profits does not negate the existence of a loss leading product. Consoles have always been a loss leading product, or at best, something that isn't there as their main cash cow. On that note:
3. That quote is from May 2014, a full 7 months after the release of the PS4. It's entirely possible that by then, they were already making a profit, while they weren't at launch. Aside from that, it's also possible that he's rolling attach rates of PS+ or number of games per console sold into that figure.

Also: https://www.polygon.com/e3/2017/6/14/15804708/xbox-one-x-not-making-money

Phil Spencer said:
"I don't want to get into all the numbers, but in aggregate you should think about the hardware part of the console business is not the money-making part of the business. The money-making part is in selling games."
 

Elandyll

Avenger
Oct 25, 2017
8,813
That's a pointless post you made. You contribute to nothing. You're the one ignoring facts here. If you choose to do so fine. But don't pretend I'm making false claims !

You are ready to say here that a company like Sony that is is in incredible financial health will "suddenly" turns back to old habits of selling console at loss ? Something that nearly destroyed the company ? If there is one extraordinary claim here, it's to say Sony would sell the PS5 at loss...
I think that all he is saying is that selling at a $10-$20 loss per console with a plan to being neutral within 3-4 months when prod capacity is running full speed wouldn't really be a surprise. It worked well for the PS4, and the plan is that when bought with a game or two and/ or an online sub the console is already making money.
 

Deleted member 35598

User requested account closure
Banned
Dec 7, 2017
6,350
Spain
But you're ignoring the fact that Sony was losing haemorrhaging money yet launched with a loss-leading PS4 which has turned the companies fortunes around!? Why wouldn't they repeat that formula?

Sony did not sold the PS4 at loss. The cost of parts for the PS4 was 381$ vs a 399$ retail price. Of course this doesn't take in consideration marketing or R&D cost but this is not the situation of the PS3 where Sony was losing up 300$ on each PS3 sold. Jesus can we at least get the facts right.

Source : https://www.google.es/amp/s/www.for...port-sony-near-to-profit-on-ps4-hardware/amp/
 

goonergaz

Member
Nov 18, 2017
1,710
1. To use Apple as an example, the new Iphone costs in the neighborhood of 400 dollars to produce, but is sold for more than twice that. To put Sony or Microsoft in that same category is profoundly misleading.
2. Investors wanting profits does not negate the existence of a loss leading product. Consoles have always been a loss leading product, or at best, something that isn't there as their main cash cow. On that note:
3. That quote is from May 2014, a full 7 months after the release of the PS4. It's entirely possible that by then, they were already making a profit, while they weren't at launch. Aside from that, it's also possible that he's rolling attach rates of PS+ or number of games per console sold into that figure.

Also: https://www.polygon.com/e3/2017/6/14/15804708/xbox-one-x-not-making-money

Indeed.

https://www.cnet.com/news/playstation-4-to-sell-at-a-loss-but-sony-expects-profit/

"According to Eurogamer, It said that after a gamer buys a PlayStation 4 for $399, as long as they buy a new game from the device maker and open a PlayStation Plus account, Sony will be able to generate a slight profit on that person."

"It's not clear how much Sony will lose on each PlayStation 4 sale. However, Eurogamer claims that it could be in the $60 range, citing "well-placed" sources."

What I'm suggesting is that potentially Sony could 'meet the consumer half-way' - a $450 machine with a slightly larger leading loss to release the best 'bang for buck'. As they are in an infinitely better position for the next gen than they were at the launch of PS4 why not!?
 

goonergaz

Member
Nov 18, 2017
1,710
Sony did not sold the PS4 at loss. The cost of parts for the PS4 was 381$ vs a 399$ retail price. Of course this doesn't take in consideration marketing or R&D cost but this is not the situation of the PS3 where Sony was losing up 300$ on each PS3 sold. Jesus can we at least get the facts right.

Source : https://www.google.es/amp/s/www.for...port-sony-near-to-profit-on-ps4-hardware/amp/

See my other posts. PS4 was sold at a loss. You do realise building something is just one factor?