Not surprising as Sony without a doubt takes a MUCH bigger loss on the Digital Edition. After launch I expect that the split will slowly grow towards a 50/50 split.
They're definitely taking a huge loss on the DE.
Not surprising as Sony without a doubt takes a MUCH bigger loss on the Digital Edition. After launch I expect that the split will slowly grow towards a 50/50 split.
What do you mean they'll never get back the loss on most sales? People have to buy digitally which is a huge boost to revenue.Of course. The $399 digital edition is an $80+ (even higher right now) loss that they'll never get back on most sales.
And it seems like the cost of the components in these consoles really isn't going to be going down, besides the SSD.
The graph shows ranges of 2:1 - 7:1 and averages out to 3:1.That looks more like it. Feels like somewhere between 4:1 and 6:1 split.
I though Sony stopped selling digital codes. You can still buy PSN credit.
I believe Sony will bank on the fact that most people wouldn't want to be permanently locked out from using the disc drive.
I also expect the distribution of PS5 DE : PS5 to be 20-30% : 70-80%.
I have been a believer of $399 since the 9TF days, and I still am.
Yeahanother thing to consider is that possibly they've just matched what they expected demand to be?
ya
I honestly hope the S doesn't take too much of the pie . If it's significantly lopsided towards I fear 3rd party won't prioritise X as much.
Unless it's in one of those big bundles, nah. They sell out pretty much instantly.
What do you mean they'll never get back the loss on most sales? People have to buy digitally which is a huge boost to revenue.
i dunno, i think plenty got sold today via Playstations email link.The digital will become a collector's item if retailers are resistant to selling it lol.
Unless it's in one of those big bundles, nah. They sell out pretty much instantly.
Ahhh interest, thank you. How were the ResetEra polls?another thing to consider is that possibly they've just matched what they expected demand to be?
Buying a card with a digital download code is still a thing. Not as lucrative for GameStop is all games were physical disks, but for moms / grandmas / family that comes in to get their kid a game? Here's a card with a download code.
Obviously Gamestop is in a more perilous position with this shift, but it's not out of the question for them or other retailers to stock Digital-based systems for this reason.
Ahhh interest, thank you. How were the ResetEra polls?
I got a Disc Version preordered and one for my friend as well. Kinda want digital tho...
It's about setting narratives. Imagine how much negativity they'd have at 500 and 559. Ps4DE shocked the world and casuals are freaking hyped. It's like people have forgotten PS5 is weaker.Personally, I don't believe they really needed to try and compete with Microsoft's pricing. The Playstation brand and the first-party titles that come with that are enough to get people to spring for the extra $50. That said, we're in the middle of a pandemic, so it's best that they do make it as appealing as possible.
The BOM reported in February by Bloomberg was $470. If you include the retail cut at a similar rate to the PS4, it comes out to around $490.
I think more than anything, Sony is determined not to repeat the PS3 announcement where the $599 price tag was met with dead silence.It's about setting narratives. Imagine how much negativity they'd have at 500 and 559. Ps4DE shocked the world and casuals are freaking hyped. It's like people have forgotten PS5 is weaker.
The BOM reported in February by Bloomberg was $470. If you include the retail cut at a similar rate to the PS4, it comes out to around $490.
The disc-drive is a $20 cost, so subtracting that yields a cost/console at $470. So at $399, that is a $70 loss.
Since then, they've doubled production and are air-freighting millions of consoles to the US because of shipping logistic issues. All of that includes additional costs.
The most conservative estimate is $70 loss per console, but it is easy to imagine that it is higher than that right now.
It's about setting narratives. Imagine how much negativity they'd have at 500 and 559. Ps4DE shocked the world and casuals are freaking hyped. It's like people have forgotten PS5 is weaker.
Most likely around 80/20 or 85/15.
$100 is a big difference when you are talking 400/500. Moreso with the pandemic and with game price ups.The digital version doesn't offer any advantages beside the price, only restrictions compared to the regular version. I'm not surprised it's the smaller %.
I assume anyone who managed to get a preorder day one, aka a gaming fanatic, would be the kind of person to prefer a physical edition.
Most of the digital editions I assume will be from parents who want to buy the cheaper option come this holiday season. Kinda like with the Switch lite.
for PC games, I think a lot of PC gamers got used to how they often have to order their computer parts online so they got used to no physical stores. But if you're walking into a Best Buy or GameStop and see Spider Man or Demon Souls for $20 off, and can trade it in too or give it friends, it's hard to ignore that benefit and pick the digital only options. Just imo. I don't pretend to know how the market will go.
Just like the 20GB PS3. It let them say $499 at launch and they killed it off soon after.
It's a marketing move. They don't actually want to eat the losses so they restrict supply until BOM comes down. They want to say Starting at $399
The BOM reported in February by Bloomberg was $470. If you include the retail cut at a similar rate to the PS4, it comes out to around $490.
The disc-drive is a $20 cost, so subtracting that yields a cost/console at $470. So at $399, that is a $70 loss.
Since then, they've doubled production and are air-freighting millions of consoles to the US because of shipping logistic issues. All of that includes additional costs.
The most conservative estimate is $70 loss per console, but it is easy to imagine that it is higher than that right now.
That's right. They won't ever kill the DE (unless market interest ends up being so low as to make that a reasonable decision). They will just keep favoring the regular SKU until when and if that starts hurting sales.They aren't going to kill the DE though. The 20 GB PS3 gave them nothing other than the price point. The DE has advantages that don't go away after the launch.
bloomberg bom was 450.
digital can be 420 then because the 4kultra bluray could be 30 instead of 20 for normal bluray drive(that why ps4pro didn't had a 4k drive..... not the same price)
sony is losing 60/80 which is more than manageable.
I think they will also start favoring it when the BOM starts coming down making the losses less painful.That's right. They won't ever kill the DE (unless market interest ends up being so low as to make that a reasonable decision). They will just keep favoring the regular SKU until when and if that starts hurting sales.
That's right. They won't ever kill the DE (unless market interest ends up being so low as to make that a reasonable decision). They will just keep favoring the regular SKU until when and if that starts hurting sales.
I think they will also start favoring it when the BOM starts coming down making the losses less painful.