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Next-Gen PS5 & XSX |OT| Console tEch threaD

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joe_zazen

Member
This is not that complicated, AMD sells all their hardware with profit, margins vary based on quantity (wholesale discounts etc.). If MS placed an order for let say $2bn they will usually get all SKUs within this order at some discounted price compared to someone who placed an order for $1bn. I am sure that before starting the development of new consoles both Sony and MS sent pricing requests to like of nVidia and Intel, not only AMD, and selected AMD based on a,b,c etc. Same applies to SSDs, Microsft simply orders more of them than Sony (whole Surface family + Xbox + Azure). It is a simple business, bigger buyers are getting better prices.

amd does not sell hardware to xbox & sony. They sell tech and engineering.

anyway, this guy from resetera sums it up better than me

i don't usually chip in with comments on these issues because you always get swamped by armchair analysts. but 12 years in manufacturing as a quality compliance manager means i probably know a bit extra (a bit)

a BOM (bill of materials) is (usually) just a list of the physical components needed to make the thing... as in the parts, the bits

(usually) it doesn't take into account labour, heat, light, machinery costs, business rates, etc etc etc... (usually)

what it certainly doesn't include is taxes, duties, shipping, contractors, marketing, point of sale commission, and everything else i'm forgetting

if your BOM is 450... and you sell for 500... you WILL make a loss... absolutely 99%

my 1% doubt is if someone as big and powerful as Sony really does have position to leverage a deal... if they can, it will be for a few negligible coins, nothing substantial

so all in all, from what's been leaked, a 500 PS5 will (probably) run at a loss

but don't worry plastic box full of microchips fans... their competitors will be in the exact same boat... (and probably worse if their thing costs more)

sony (and microsoft) have numerous entertainment revenue streams... so as many have already stated, you run at a loss here to create brand awareness and trust, then your other services make up the difference and put you in the green

edit jezuz i am grumpy today. Sorry.
 
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DaGwaphics

Member
Wrong. Microsoft picks a hardware vendor to provide servers and there's a range of them (HP, Dell EMC, SuperMicro, IBM, etc.). Last I heard they selected Dell EMC for some of their deployments. If Microsoft designs and deploys their own servers they are in limited quantity... if at all. As far as leasing is concerned, a lot, and I mean a lot, of data center space Microsoft utilizes is leased. As a matter of fact, Microsoft is one of the biggest leasers of data center space. Not much different from anyone else.

You misunderstood my statement. They lease floor space, they buy a lot of hardware at various levels of completion. They also design and manufacture (as in contract for manufacture from an existing vendor/assembler) custom blade units for xcloud and big learning clients. They also purchase an astronomical number of drives/memory/network components and so on. So yes, they do buy from vendors, did anyone think they would be manufacturing their own parts. LOL
 
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I'm just trying to snub the whole doom and gloom about people saying Sony is in trouble because of the costly parts...I am willing to bet both consoles are using very similar components so if one of them is 'struggling on the costs' then so it the other. Everyone needs to realize that both sides are playing a chess game on the specs/pricing and neither of them want to have another PS3/X360 or PS4/XB1 pricing discrepancy again, both sides are on their game this gen so it is going to be interesting.
It is a weird situation though because although Sony are the most successful console manufacturer by far at the moment, actually MS have more money to play with in terms of selling at a loss if they wanted too. Is it likely that MS will sell a console with more expensive hardware and actually sell at a loss just to gain a lead in the next gen? No I don't think it is likely but they have the resources to do it so it's possible.
 

lynux3

Member
You misunderstood my statement. They lease floor space, they buy a lot of hardware at various levels of completion. They also design and manufacture custom blade units for xcloud and big learning clients. They also purchase an astronomical number of drives/memory/network components and so on. So yes, they do buy from vendors, did anyone think they would be manufacturing their own parts. LOL
You made it sound like they do everything themselves.

They lease floor space, they lease network providers, they lease everything.

Last we officially heard Microsoft had 3 million servers that make up Azure from 2017 (up 2 million from 2015). I assume it may have doubled? Lets just say 6 million... over a 4 year span. That's small even in comparison to Xbox One hardware sales annually. Not to mention it's completely different channels compared to semi-custom. Who cares what other components they buy that are from other vendors and how is that related to semi-custom? I doubt they're looking into data center grade components for a video game console; components they don't even dabble in because they buy it directly from a vendor.

Needless to say, trying to argue the "who gets better deals" and injecting Azure as some kind of leverage is silly AF.
 

Mendou

Banned
It is a weird situation though because although Sony are the most successful console manufacturer by far at the moment, actually MS have more money to play with in terms of selling at a loss if they wanted too. Is it likely that MS will sell a console with more expensive hardware and actually sell at a loss just to gain a lead in the next gen? No I don't think it is likely but they have the resources to do it so it's possible.
With the little faith Microsoft have in their Xbox division, I agree with your view point. If Phil doesn't ensure that the XSX will be profitable for Microsoft, then Xbox might just become Sega 2.0 after this generation.
 

Dane

Member
Okay, I couldn't even understand much of the Timdog shitstorm, but looking at this post

Hey brother love your post so i figure i join in. Heard that Sony is indeed afraid to show the form factor thats why they are in wait and see mode. Form factor dead giveaway, and also these consoles are indeed 499, or wait and see mode is worried that both are that price and one has superior specs . Hence why we are in waiting mode , some On team X wanna go bold and say specs, because they know what they have in machine is more powerful “also more expensive”, but cooler heads prevail, let the weaker one try and decide gameplan & wait out. Reveal set for April but who knows for Now for Xnormous. Also this ssd hype, heard both will be same, and Xnormous will actually have better Ray Traces = More Cus. Anyway thats my sights and when the time comes i will either anti up or I will graciously love everyone here and accept another medal . None the less love you all

Wasn't there some people saying that the Loren Ipsum in that Xbox Reveal conf in April could be a sign of legitmacy?
 
D

Deleted member 775630

Unconfirmed Member
So let me get this straight, people think because the parts are expensive that the machine is weak? In what world does that make sense? The machine has been rumored at $499 at a loss. Take that number and run with it. $450 would be a blessing. Specs aren’t changing at this point For either machine.
People think that Sony might have over-engineered it with too many custom changes, which will result in a more expensive console due to those more expensive parts, but weaker (not weak) than the XSX who has the same price, but less customisations. Or more likely. They'll both cost $499, and will be practically the same in power, and Sony takes a bit of a bigger hit in costs.
 

DaGwaphics

Member
You made it sound like they do everything themselves.

They lease floor space, they lease network providers, they lease everything.

Last we officially heard Microsoft had 3 million servers that make up Azure from 2017 (up 2 million from 2015). I assume it may have doubled? Lets just say 6 million... over a 4 year span. That's small even in comparison to Xbox One hardware sales annually. Not to mention it's completely different channels compared to semi-custom. Who cares what other components they buy that are from other vendors and how is that related to semi-custom? I doubt they're looking into data center grade components for a video game console; components they don't even dabble in because they buy it directly from a vendor.

Needless to say, trying to argue the "who gets better deals" and injecting Azure as some kind of leverage is silly AF.

As opposed to what, manufacturing camcorders????

My point was that they will do a major build-out for Xcloud. Since the same hardware is being retrofit for the Xcloud blades, that increases initial purchase orders (even if MS expects to move fewer units than Sony). And if you think contracts for high-margin products can't be used to gain leverage on low-margin buys, that's on you. But this is a bit off topic and "silly" as has been pointed out. Both companies will be in a very similar range on most components. Every once in a while a deal comes along like the Philips deal that put UHD BR drives in OX and OS, but that doesn't stretch across all components.
 
10 TF IS STILL a option ... I said 10 plus. Between 9 and 10., 10.2 even that’s it, not everything is set in stone but it will hover around that range, If the 36 CU IS TRUE. It’s bound by CU. Will never reach 12TF WITH the 36 CU setup.

If 36CUs is true, you can't get 10TF without blowing up the chip. You'd need to turn all 40CUs on and still clock them to 2GHz. But with all 40 active, it means less yields.

...otherwise it's 36CUs @ 2200MHz. And I mean, a 5700XT was overclocked to 2.2GHz but it's like....damn, really!?

I don't know...my hunch about drives is that both companies want to minimize this launch cost of HDD and use a bigger HDD as an easy selling point for S model refreshes as the cost per GB drops, but the bigger issue - with so much of console profits made from digital -is that they don't want to lose a digital game sale for the sake of insufficient storage on the customers HDD, and if you don't do HDD (make it all SSD) you make that problem worse, as you've then effectively ruled out USB attached storage. History of HDD size in Xbox/xbox360/One and PS3/PS4 lean me towards believing mechnical is still essential to both companies digital software strategy.

As for persistent RAM, I think it isn't durable or reliable enough judging by Intel Optane module reviews for the smaller modules. The cheaper/easier solution would be to use a portion of the GDDR6 (2GB) or DDR4 to mimic the millisecond access bridge that Persistent RAM facilitates in bridging nano second RAM access - for the CPU - to Micro second SSD access.. The sizes are also encroaching into the small SSD size and increases the console failable component count. If durability of GPU mapped (NVME) SSD is an issue at 16GB or 32GB then I suspect they'd just double the size to spread the wear giving a 2 or more lifespan increase. So I'm now thinking for the slower hiearachical storage data path: for the CPU to access data it will be:

16GGDR6 -> 2GB DDR4 -> 32 or 64GB SSD NVME on GPU -> 500GB HDD

I aslo think the use of an SSD will mean install size of PS4/PS5 games on PS5 will be 1/4 of what we have on PS4 - as it has been mentioned that replication is heavily used to maximize access of the PS4(PS3,etc) HDD because it reduces the rotation of the HDD head to reach the data when replicated across a platter.

Yeah, Optane doesn't quite deliver the performance ATM you'd hope, that is true. But I'm sure big data centers are getting their use out of it, plus hopefully with another refresh or two performance will increase and prices come down. There is definitely a future in the consumer market for persistent RAM but it's probably still too soon even for Optane, let alone ReRAM.

I like the idea of the DDR4; PS5 will likely have some anyway at least for the OS but for all we know if they still want to have 4GB for background OS tasks and just double it up, that could give 4GB for the idea you're proposing. I think a separate partition of DDR4 for it is better than taking a chunk of the GDDR6 away from devs, because whatever amount the system has anyway (at least 16GB), probably 2GB will be reserved for OS tasks anyway.

The only potential issue with going with a HDD at all (500GB or otherwise) is the perception it could cause with customers who view it as a relic technologically speaking. Especially if one of the systems has a 500GB HDD but the other goes with a 500GB or 1TB SSD. Early adopters will note that difference and it could be bad optics for the system with the HDD even if the solution for it in the system relative to the rest of the memory setup is plenty sufficient.
 

diffusionx

Gold Member
It is a weird situation though because although Sony are the most successful console manufacturer by far at the moment, actually MS have more money to play with in terms of selling at a loss if they wanted too. Is it likely that MS will sell a console with more expensive hardware and actually sell at a loss just to gain a lead in the next gen? No I don't think it is likely but they have the resources to do it so it's possible.

I think either company could do it, but neither want to or will. Office 365 doesn't exist to subsidize Xbox into perpetuity, and Phil isn't there to extract money from the rest of the company. His job is to turn Xbox into a growing and sustainable business. MS wants to push services, their main goal is selling GamePass, not Xbox consoles, so I don't think they will be throwing money down a black hole just to sell consoles.

As for Sony, I think the PS4 showed it's just absolutely unnecessary to do it. If it's the cost of getting into the market, fine, you pay what you pay (like an internet startup these days), but the PS4 proved you can release an affordable console at or more or less cost day one and succeed.
 

nowhat

Member
But glad he gone.

so-say-we-all-gif-2.gif
 
It is a weird situation though because although Sony are the most successful console manufacturer by far at the moment, actually MS have more money to play with in terms of selling at a loss if they wanted too. Is it likely that MS will sell a console with more expensive hardware and actually sell at a loss just to gain a lead in the next gen? No I don't think it is likely but they have the resources to do it so it's possible.

MS does have a TON of money at their helm, how much of it is available to the Xbox Division is another question too, but they do have the internal money to do some crazy stuff if they wanted to! Sony also has some money this time around as well since they didn't sink a ton of money into R&D like they did with the Cell and then take a huge loss on the console, the PS4 was break even from the beginning, it has been selling well and with the PS Plus subscription money coming in I am sure it has helped tremendously going into this next gen. I expect both companies to be swinging for the fences on their hardware and I can't wait to get my hands on the games! Holiday 2020 can't get here soon enough!
 
So let me get this straight, people think because the parts are expensive that the machine is weak? In what world does that make sense? The machine has been rumored at $499 at a loss. Take that number and run with it. $450 would be a blessing. Specs aren’t changing at this point For either machine.
You're right, but Sony is acting strangely with PS5. And that creates distrust. Quite the opposite of MS that shows confidence.
 
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Gavin Stevens

Formerly 'o'dium'
While alot of people fighting over the power, Naughty Dog is about to redefine triple-A with tlou part ll.
wWW6pTA.jpg

Yeah I know I’m about to take some flack for this, but...

I REALLY hate people that toot their own horn. I don’t care how good your game is, be humble. UC4 was likely the biggest disappointment of the gen for me (I can’t say anthem or fallout 76 as expectations were so low already).
 
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lynux3

Member
As opposed to what, manufacturing camcorders????

My point was that they will do a major build-out for Xcloud. Since the same hardware is being retrofit for the Xcloud blades, that increases initial purchase orders (even if MS expects to move fewer units than Sony). And if you think contracts for high-margin products can't be used to gain leverage on low-margin buys, that's on you. But this is a bit off topic and "silly" as has been pointed out. Both companies will be in a very similar range on most components. Every once in a while a deal comes along like the Philips deal that put UHD BR drives in OX and OS, but that doesn't stretch across all components.
As opposed working with component suppliers to building roughly ~17-18M semi-custom consoles a year on average, millions upon millions of CMOS sensors, hundreds of thousands of TVs, AVRs, headphones, etc. All of this hardware is custom built by Sony. These aren't ready to hot swap my drive because it failed vendor replacements. These are built in-house and contracted out through several suppliers and manufacturers.

I don't understand why you're hard on for these custom Project xCloud blades like Sony didn't beat them to the punch 5 years ago. Sony has been doing that since PS3 with a highly custom chassis (8 PS3s per chassis) and now they are doing the same with PS4. PlayStation Now has a capacity of 5 million users, it's no joke. I suppose this also increases initial purchase orders the same way?

This is such a pointless argument and really all I'm saying is Azure doesn't come close to or leverage "deals" on semi-custom.
 

01011001

Banned
While alot of people fighting over the power, Naughty Dog is about to redefine triple-A with tlou part ll.
wWW6pTA.jpg

redefining how shallow and dumbed down they can go with their gameplay and gamedesign while still getting GOTY nominations because UH MAH GAWD LOOK AT THEM GRAPHIX AND DRAMATIC MO-CAP! :pie_roffles:
 
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demigod

Member
.
So let me get this straight, people think because the parts are expensive that the machine is weak? In what world does that make sense? The machine has been rumored at $499 at a loss. Take that number and run with it. $450 would be a blessing. Specs aren’t changing at this point For either machine.

Actually $450 BoM would be cheaper than what I would've guessed. Did Sony get a huge discount on Navi or something? I would've guessed $599 shipping and retail cut included and MSRP at $499. If PS5 still has a better GPU, how the hell is XSX BoM higher, lol.
 

DaGwaphics

Member
As opposed working with component suppliers to building roughly ~17-18M semi-custom consoles a year on average, millions upon millions of CMOS sensors, hundreds of thousands of TVs, AVRs, headphones, etc. All of this hardware is custom built by Sony. These aren't ready to hot swap my drive because it failed vendor replacements. These are built in-house and contracted out through several suppliers and manufacturers.

I don't understand why you're hard on for these custom Project xCloud blades like Sony didn't beat them to the punch 5 years ago. Sony has been doing that since PS3 with a highly custom chassis (8 PS3s per chassis) and now they are doing the same with PS4. PlayStation Now has a capacity of 5 million users, it's no joke. I suppose this also increases initial purchase orders the same way?

This is such a pointless argument and really all I'm saying is Azure doesn't come close to or leverage "deals" on semi-custom.

Again, this is all silly. But you'd better do some multiplication on what a 100m consoles = in $ to AMD vs 200-300 trays of EPYC 7702s. LOL

Drink some coffee, you aren't making sense here.

Also, MS is making a much larger push with Xcloud than Sony ever did with PSNow (as did Google with Stadia).
 
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Gamernyc78

Banned
It is a weird situation though because although Sony are the most successful console manufacturer by far at the moment, actually MS have more money to play with in terms of selling at a loss if they wanted too. Is it likely that MS will sell a console with more expensive hardware and actually sell at a loss just to gain a lead in the next gen? No I don't think it is likely but they have the resources to do it so it's possible.

You assume this bcus of what lol Sony has way higher profit margins in gaming division than Microsoft if anyone has more money to sell at a loss its Sony. Business doesn't work the way ppl think, Microsoft is a trillion Dollar company but Xbox does not have a trillion dollar coffer. Every department has budget constraints and given the slack and gripes investors have had in the past with Xbox and how thy were nowhere as successful this gen as Sony thy don't have more money to sell at a loss, thts complete bs.
 

Gamernyc78

Banned
Again, this is all silly. But you'd better do some multiplication on what a 100m consoles = in $ to AMD vs 200-300 trays of EPYC 7702s. LOL

Drink some coffee, you aren't making sense here.

Also, MS is making a much larger push with Xcloud than Sony ever did with PSNow (as did Google with Stadia).

Microsoft also made a much larger push with motion gaming and kinect anddddddd we know how tht went lol ps moves are around, kinectssss mmmmm 🤦‍♂️🤔
 
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I inferred your post to mean MS would get a better price on APUs, due to being a "computer tech giant". I don't think it's that straightforward, there are plausible explanations why Sony would get a better deal.

(if I misunderstood you then ignore)
No, you understood me right. And you are correct, there are plausible explanations why Sony COULD get a better deal. But those explanations are more unlikely than likely in my opinion. The entire suite of MS products is pulling heavily from AMD on a whole host of products beyond Xbox.
 

hemo memo

Gold Member
So let me get this straight, people think because the parts are expensive that the machine is weak? In what world does that make sense? The machine has been rumored at $499 at a loss. Take that number and run with it. $450 would be a blessing. Specs aren’t changing at this point For either machine.

$499 is not much. I’m not rich. Not even close but c’mon people. It’s the world of Apple. Mass market pay that much for a fucking watch.
 
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Actually $450 BoM would be cheaper than what I would've guessed. Did Sony get a huge discount on Navi or something? I would've guessed $599 shipping and retail cut included and MSRP at $499. If PS5 still has a better GPU, how the hell is XSX BoM higher, lol.

I am expecting the BOM to be around $500-600 and to have a street price of $499. If they did somehow get a $450 BOM for the PS5 I am really interested to see the breakdown, I feel like just the APU, RAM and SSD should be more than enough to shoot the cost above $450
 

RookX22

Member
Yeah that is one thing that gets me about people talking about xcloud I mean psnow is a thing right now and has been. I can launch it and stream on my pc and ps4 like what is xcloud and stadia except other forms of what sony is already doing?
 

Mass Shift

Member
This is a worrying quote. Those who believe the ps5 could be sold for a profit at launch tells me they do not understand the market and are greedy AF.

I do believe they have power at Sony hq given how sony has closed studios, reduced genre diversity, made cheap AF hardware, and generally done everything to exact maximum money with least expenditures and a ‘future will take cate of itself’ attitude.

Them wanting a $450 bom console and a retail $499 price makes 100% sense. MS having a $499 more powerful console with gamepass makes things mighty tricky.

So what can you get for $450 USD in 2020? 13TF with blzing 1TB ssd and 24 GB ram alongside great controller and whisper quiet console? or closer to 8.X tf 16 gb 500 gb ssd etc?

that is the billion dollar question.

I am hoping MS is acutually super hungry like they were in 360 era. Sony has been greedy as fuck this gen and they need to up their game.

These platforms still need to be profitable. I could see how both MS and Sony could both be enticed to price as close to their BOM costs as possible. Sony, even more so. They don't have a whole bunch of sub -platforms planned like MS to help drive their profit ambitions.
 

lynux3

Member
Again, this is all silly. But you'd better do some multiplication on what a 100m consoles = in $ to AMD vs 200-300 trays of EPYC 7702s. LOL

Drink some coffee, you aren't making sense here.

Also, MS is making a much larger push with Xcloud than Sony ever did with PSNow (as did Google with Stadia).
Better yet, let's just take a look at PlayStation's revenue in hardware versus AMD's revenue in the datacenter. Then we'll put you out of your misery by adding up the rest of their hardware lineup in revenue.

Yeah, that push is looking real good... 5 years later, and really, you're making it much easier by using Stadia as an example. Can't tell if you're being serious anymore.

Time for you to take a break, Donnie, you're out of your element.
 
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wolffy71

Banned
$499 seems like a price people are going to be willing to pay. Especially if the supply is limited, either from shortages or by choice. With most of the games being available cross gen they will still sell software a plenty. So it sets itself up to where the hardcore gamers get in at $500 and a bit later once supply chain eases up they can drop the price a little for the masses. This goes for either console, less so MS if they really do a cheaper console of course.
 

Gavin Stevens

Formerly 'o'dium'
I’m anticipating £499.99 each, and no more really. I have £1,000 we put aside for the both, with any extras coming out of pocket as needed.

I honestly don’t expect anything more than that, and that’s my extreme end of things. I would be more happy with £449.99 or £429.99 myself, as that means more for me to play with.

As has been said before people pay £500 for an Apple Watch, so for a huge next gen machine, that’s not too bad. The phones are different though, I know nobody who ever bought a phone out right - we all pay for it on our contracts.
 

splattered

Member
Or the one that purchases 2x the APUs? AMD doesn't get a cut for every AMD CPU/GPU used on Windows PCs.

Are you basing this off of the dual GPU theory (x2 the GPU = double the GPU orders for PS5) or current sales of what's soon to be previous generation... there are no guarantees moving into next generation where both companies are starting sales from scratch.

If there are any deals at all to be struck with AMD it would make sense to be with the company that brings them a larger overall commitment up front. Do you think Sony would foolishly put in an order for twice as many machines to be built for year one when they haven't even landed on a price to the consumer or had a chance to analyze first year adoption rates yet?

Not saying this has happened at all but considering the MS side of things - Initial next gen console build orders, components for high end Azure upgrades, and components for anything that will also be using AMD tech like surface machines could play an overall role in discounts for ALL AMD products that MS uses across all hardware.

Microsoft has also just openly partnered with Samsung for gaming which could lead to discounts on SSD and memory prices and more for all we know.

The AMD reasoning above may also apply to Samsung discount deals... using their tech in XsX and Lockhart, high end Azure upgrades, surface machines, and whatever else might help bring costs of next gen machines down further.
 

Jtibh

Banned
Yeah I know I’m about to take some flack for this, but...

I REALLY hate people that toot their own horn. I don’t care how good your game is, be humble. UC4 was likely the biggest disappointment of the gen for me (I can’t say anthem or fallout 76 as expectations were so low already).
Was hoping for better after 3 but halfways through all i could think was when does it end.
Given the direction nd took with tlou2 a revenge story ala Nightingale i am going to wait out and see if its any good.
 

saintjules

Member
Okay, I couldn't even understand much of the Timdog shitstorm, but looking at this post



Wasn't there some people saying that the Loren Ipsum in that Xbox Reveal conf in April could be a sign of legitmacy?

I'm currently entertaining that the flyer that was posted is possibly legitimate because of that placeholder text.
 

Gamernyc78

Banned
$499 is not much. I’m not rich. Not even close but c’mon people. It’s the world of Apple. Mass market pay that much for a fucking watch.

Bro I have to put down $500 on boost mobile to get the Samsung S20 in March bcus you know boost mobile is no contract/subsidation and the other 500 I'll be paying off monthly. 500 for a console is about right this day in age as long as it warrants it.
 

Gavin Stevens

Formerly 'o'dium'
Was hoping for better after 3 but halfways through all i could think was when does it end.
Given the direction nd took with tlou2 a revenge story ala Nightingale i am going to wait out and see if its any good.

Uncharted 2 was the absolute tippy top of balance. Gorgeous visuals, amazing story and good gameplay. 3 tried to be a more of the same style, but it ended up being tired, no new gameplay ideas, and a terrible story. 4 I couldn’t even finish... it was just dreadful...

TLOU2 looks utterly gorgeous, but unless it’s got some decent gameplay changes and it’s not just TLOU1 with a fresh coat, I’ll likely skip. It will be the only Sony exclusivethat I won’t have played, then. I can’t wait for reviews because they will all hush about it even if it’s a steaming pile, I can see it a mile off.

I want it to be good, but I just have my doubts.
 
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