If I remember correctly, their original thought was that they'd ship 6 million because it'd cost higher and then reduce the price of the PS4 Pro and PS4.
That's why this might imply they may be going with a lower price on hardware.
Sony is increasing production of PS5 hardware units by 50% (expects 10m units made by December, may still be limited by shipping constraints)
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That's why this might imply they may be going with a lower price on hardware.
Damn, 10 million produced by the end of 2020 is mighty nice. I had previously said if Sony could produce 30 million units in the first year that they'd sell each and every one of them and I still firmly believe that. Gaming is huge right now and with Covid not going anywhere anytime soon people are going to need to entertain themselves any way possible, not to mention the social aspect of playing with friends.
So yeah Sony, make as many as you possibly can in that first year because they'll all sell. Even if they're selling at a loss they'll make monstrous profits off of game sales, accessory sales, services sales, not to mention they'll still have the juggernaut that is the PS4 raking in buttloads of money for years to come. Whether it's the PS5 or the PS5 Digital, one of them is gonna be $399, this only reaffirms that to me.
Making me feel really confident that I'll at least be able to secure my own PS5 at launch and the other 2 that I'll need before Christmas.
So yeah Sony, make as many as you possibly can in that first year because they'll all sell. Even if they're selling at a loss they'll make monstrous profits off of game sales, accessory sales, services sales, not to mention they'll still have the juggernaut that is the PS4 raking in buttloads of money for years to come. Whether it's the PS5 or the PS5 Digital, one of them is gonna be $399, this only reaffirms that to me.
Making me feel really confident that I'll at least be able to secure my own PS5 at launch and the other 2 that I'll need before Christmas.
Not necessarily. I think they either had Covid-19 related concerns with suppliers and their own workers and they now feel things are getting better. Or maybe they've figured out how to automate certain assembly processes.
I remember them saying they shipped 8 million PS4s in the same timeframe in the last article about this, and that 6-7million hinted at lower demand because of a higher pricepoint?
So.. does this indicate..they are pushing for more units this fiscal... because demand will be higher/ or as high as ps4 launch indicating we get atleast one of the sku's at $399?
So.. does this indicate..they are pushing for more units this fiscal... because demand will be higher/ or as high as ps4 launch indicating we get atleast one of the sku's at $399?
I think everyone is looking at the Switch and realizing people need entertainment during this crisis so why create a shortage situation. Their initial production goal would have been a deliberate cutting themselves off at the knees.
Seems like it will still be tough to get at launch but they're trying to make it easier on folks in the few months following.
Or they're just looking at the gaming industry in general probably, or hell, maybe even their own numbers.
Beating on 60/40 or 70/30
As much as Sony wants more people to go digital, I think physical will still be what it leans more on at least at launch.
yeah, I was thinking the same thing. No way they would be able to sell 10 mil if it was above 500
I hope Sony isn't stupid and make it $399.
Insane launch, momentum leading to even more sales, keep it at $399 for multiple years. Way better to eat a loss at the beginning and have a guaranteed successful launch than the opposite.
Insane launch, momentum leading to even more sales, keep it at $399 for multiple years. Way better to eat a loss at the beginning and have a guaranteed successful launch than the opposite.
Yeah, I don't see it being anywhere near 50/50, retailers are also likely to prefer physical version.
399 would be absolutely massive, They would however take a huge hit, especially at 10 million units sold. if the BOM is really at something like 470, including retail and all that would come close to a 100$ loss per console, so 1 billion loss on that front til march 21. Since they are in a comfortable market leader position this would seem like an absolutely crazy move to me.
I'm curious, do we have any stats on which console had the most sales in its first year? If they're already aiming higher than the PS4 in the same relative time frame then I wonder how it might stack up against all historical consoles once its first year is done.
Also, I'm very curious how many PS4's they're still gonna be making. Is this the year we get the fabled PS4 super slim, or is that a next year thing? I'm still banking on that sumbitch breaking the PS2's sales record. Now that Sony has jumped on the all digital console bandwagon I wonder if the potential super slim could have a digital variant as well to hit an even lower price point. I doubt the super slim would be all digital since physical sales are still pretty big, but it'd be interesting to see if they go the 2 SKU route there as well.
And on another note, if they're gonna be installing PS5 hardware in PS Now servers I wonder how much resources is being devoted towards that. That means components that could've made it into consoles would be used for the PS Now servers. Or... maybe they're planning to install the PS5 hardware in PS Now servers sometime after launch, and they're dedicating the components that would've gone towards PS Now to console production which is what this increase is based on? Hmmm, wonder if that's possibly what happened. Well, sometime in the next month or so I expect we'll get a better idea of their PS Now plans to know if PS5 support will be there for launch or not.
Also, I'm very curious how many PS4's they're still gonna be making. Is this the year we get the fabled PS4 super slim, or is that a next year thing? I'm still banking on that sumbitch breaking the PS2's sales record. Now that Sony has jumped on the all digital console bandwagon I wonder if the potential super slim could have a digital variant as well to hit an even lower price point. I doubt the super slim would be all digital since physical sales are still pretty big, but it'd be interesting to see if they go the 2 SKU route there as well.
And on another note, if they're gonna be installing PS5 hardware in PS Now servers I wonder how much resources is being devoted towards that. That means components that could've made it into consoles would be used for the PS Now servers. Or... maybe they're planning to install the PS5 hardware in PS Now servers sometime after launch, and they're dedicating the components that would've gone towards PS Now to console production which is what this increase is based on? Hmmm, wonder if that's possibly what happened. Well, sometime in the next month or so I expect we'll get a better idea of their PS Now plans to know if PS5 support will be there for launch or not.
The interesting question would be the split between the digital version and the disk version? It must have been interesting to see how Sony answered this question.
1 billion isn't that much when you consider PSN has been making over 12 billion in revenue per year.
Price disparity between them will be very interesting.. and how that affects demand.
Considering the digital version will be cheaper and every customer who buys this model can only buy software directly from Sony where they get a bigger cut and most of SIE's money is made I'm expecting Sony to produce more digital editions. Perhaps production will be 55% Digital Edition 45% Disc version.
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Oh yeah they are definitely going to take that L with the Digital Edition.
true, but these companies are still in the business to make money and it's still 1 billion and you are going to lose 1 billion for what exactly? How many units would you expect them to sell till march at 499? It's still going to be massive, I'd bet they would still sell 10 mil by march even at 499, but even if it's only at 8 million till march, you are paying 1 billion for 2 million additional units sold by march. Of course there are long term effects to be considered, though I'd argue this is a really tough sell to share holders
No, that has nothing to do with price really. Their assertion of outselling the competitor is based on brand power, mindshare, and response to the June event. Even if the PS5 ad XSX are price twins and the series S is cheaper, they still would anticipate the same result.
Why would they take a bigger loss when they will sell out at launch guaranteed?
Imagine seeing corporates as sports teams in the 2020s. They will both do well lmao
Maybe, though they could probably price it higher and still sell out all 10 million as fast and they can get them on the shelf. I feel like $399 is kind of just leaving money on the table for them.
Surprised that they seem to be going full steam ahead, guess they don't think COVID-19 will be as big of a factor as originally thought (even though it's getting worse in what's arguably its biggest market?).
I say biggest considering the staggered PS4 launch, but given the consolidation of regions into one central branch, simultaneous worldwide release, and Jim Ryan at the helm (previously PS Europe) I'm guessing they're just focusing on the bigger picture.
I say biggest considering the staggered PS4 launch, but given the consolidation of regions into one central branch, simultaneous worldwide release, and Jim Ryan at the helm (previously PS Europe) I'm guessing they're just focusing on the bigger picture.
I hope so because I'm praying the conversions in Aus means we don't get shafted on pricing
Selling hardware at $500 is kind of unproven if you're Sony. And I don't actually think it's a guarantee that they'd sell out 10 million at $500. Whereas it seems like a no brainer at $400.
Very confident in those sales, perhaps the price isn't as high as many are expecting. There's no doubt the demand will be there, was just a potential $449-499 price point combined with pandemic that made me think it might be dampened somewhat.
That said, even with a mess of an economy, we'll all inevitably be in lockdown again in the Winter so new consoles could well be launching at a perfect time in that regard too.
That said, even with a mess of an economy, we'll all inevitably be in lockdown again in the Winter so new consoles could well be launching at a perfect time in that regard too.
Indeed, they only sell Pros these days.
Great news. I need it.gif
Yeah, feels like they're seeing a lot of demand. Doubt we see it physically for obvious reasons but that'll everyone hitting F5 online lol.Seems like they are expecting a lot of demand...
Waiting for first day gifs
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Times have changed, I'm sure around the PS3 era if companies tried to sell smart phones for $1000 people would have laughed and they would have bombed, yet people buy $1000 smart phones every 1-3 years these days without much complaint.
$500 for a console that lasts 7-8 years won't be a problem.
People are deluded if they think we are getting the tech that is in the next gen consoles for $400.
Best case scenario
Digital edition is 399
Normal is 499
Both would instantly sell out at their respective price points
Still, a hell of a loss per unit on the digital edition, could see the digital being 449 too
Digital edition is 399
Normal is 499
Both would instantly sell out at their respective price points
Still, a hell of a loss per unit on the digital edition, could see the digital being 449 too
Yeah PS5 Disc version I'm betting will be $499 and the digital edition will either be $449 or $399 depending on MS pricing strategy.