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A Friendly Reminder About PlayStation 5 and the Cost to Produce it ($499 gang, GET ITT!!!)

Bloomberg reports that the PS5 is costing Sony around $450 per unit. However, Bloomberg's source claims that Sony is taking a "wait-and-see approach" to decide on the pricing of the console.

Bloomberg predicts that the price will have to be at least $470. However, we're expecting the PS5 to be at least $499 if Sony wants to make some semblance of a profit. Then again, the PS4 sold for $399 at launch, but the cost to manufacture was actually $381, as estimated by IHS Markit.

In other words, Sony will not be selling at a loss if they decide to price the PS5 as $499.

I predict the PS5 Digital Edition to price at $399 and make up the lose by cutting out the middle man when it comes to software sales.
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February 13, 2020, 9:50 PM CST is when that article was released, that is Pre-CoVID, but sure entertain yourself to disappointment.

There's this.


Weird how with a severe increasing in production costs (and MSRP) they decided to increase production.
 
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lachesis

Member
I think they'll match MS - $499 and $449 for digital ver. If not, $549 / $499 digital. I don't think they'll be cheaper than Series X at all.

As they pretty much ruled the current gen (Asides Switch) - Sony has the advantage here over loyal fans and more robust 1st/2nd party as well as 3rd party support momentum from current gen.
 

Oddspeak

Member
My prediction ever since the Wired article back in October has been $499, and $449 for the digital edition since it was confirmed.

Sony might be ballsy enough to shave $50 off those figures solely to undercut Microsoft, but I doubt they'd consider it necessary.

Basically, both consoles (with disc drives) will likely be $499 like every reasonable person expected, and this game of price chicken will have been total bullshit.
 

Kdad

Member
My prediction ever since the Wired article back in October has been $499, and $449 for the digital edition since it was confirmed.

Sony might be ballsy enough to shave $50 off those figures solely to undercut Microsoft, but I doubt they'd consider it necessary.

Basically, both consoles (with disc drives) will likely be $499 like every reasonable person expected, and this game of price chicken will have been total bullshit.
MS is only releasing Estimated Retail Pricing right now right? So if SONY does undercut, MS will have to match and it makes MS look reactionary...maybe some marketing value in that?
 

Evangelion Unit-01

Master Chief
The price for both of these consoles was set along time ago.

I've expected $299/$499 on the Xbox side for a while. Based on all of the specs it is just what made sense.

I expect $399/$499 on the PS5 side, perhaps $449/$499. The bill of materials approaching $500 being an issue was never about MSFT having a "cheap" S nor was it about the margin on the PS5, rather it was about the loss on the digital console.

A $299/$399/$499 slate of options is very interesting. MSFT will pull in a very different type of consumer with the S and remains enticing to the hardcore with the X's power. SNE will have a compelling suite for the hardcore with a choice of digital vs physical at two different price points. Really a good host of options from both.

Honestly what is most surprising to me is the lack of a digital X SKU from MSFT.
 
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jaysius

Banned
The price for both of these consoles was set along time ago.

I've expected $299/$499 on the Xbox side for a while. Based on all of the specs it is just what made sense.

I expect $399/$499 on the PS5 side, perhaps $449/$499. The bill of materials approaching $500 being an issue was never about MSFT having a "cheap" S nor was it about the margin on the PS5, rather it was about the loss on the digital console.

A $299/$399/$499 slate of options is very interesting. MSFT will pull in a very different type of consumer with the S and remains enticing to the hardcore with the X's power. SNE will have a compelling suite for the hardcore with a choice of digital vs physical at two different price points. Really a good host of options from both.

Honestly what is most surprising to me is the lack of a digital X SKU from MSFT.

Year and half before 3rd SKUs for both.
 

Blond

Banned
If they decide to take the loss route I'm thinking 450 minimum because if technically they sold the PS4 at 399.99 they still didn't make a profit till May 2014, 6 months after it launched and that was full steam ahead in terms of sells.

If they go on Attack mode I'm thinking 399.99 to Combat Series S and 499.99 to Match Series X.
 
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Raise a big middle finger to Microsoft and sell it for $450!

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I wish, but they really have no reason to do that. Did you see how many units they sold vs MS this past gen? Why would they cut their profits when unnecessary? They even outsold the 360 after the disaster our launch of the $600 grill.
 

Entroyp

Member
Yup, assuming those numbers from Bloomberg are accurate the PS5 should be $499. I find pricing the DE a bit odd because the BOM is virtually the same so $399 is a big loss per unit, but on the other hand you lock the user to the PSN store and make more revenue per unit that way.

I still believe it will be $499/449
 

Entroyp

Member
February 13, 2020, 9:50 PM CST is when that article was released, that is Pre-CoVID, but sure entertain yourself to disappointment.

So Covid increased the BOM price? Did the SoC or the Flash storage needed hospitalization or something?
 
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Silver Wattle

Gold Member
449/499.
No need to go lower as the digital already offers a lower price than the X, and Sony need not devalue their disc version console by letting people think that the bigger GPU means the X is worth more.
 

Entroyp

Member
BOM estimates are kinda silly.

Beyond that, your BOM isn't your "cost of goods sold" COGS. So if you have a $450 BOM, you can still lose money selling at $500.

The PS4 was losing money when it launched but it wasn’t nearly as bad as when the PS3 launched. If I remember correctly Sony needed to sell a couple of games on each device to make that money back.

Same will apply to PS5, it will absolutely not make money on hardware alone for at least 6 months to a year.
 
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The retailers are kind enough so that they do not make any money?

Historically retailers understood selling the console platforms equates to a larger marketplace and business turnover of games. However a digital future really sees that drop off a cliff in recent times, it's only going to be worse as that supply chain shrinks to a direct consumer model.
 
299 Series S - 399 PS5 DE - 499 PS5/SeX

These are my predictions and every choice would have something going for it, everything right with the world. Series S is the cheapest, PS5 DE is a substantial upgrade for only 100 more, and the the top priced models will probably be even.
If PS5 Digital Edition comes in at $399, Whoo Boy.
$399 was always the sweet spot and i envision it would be PlayStation's highest seller.
 
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