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Bloomberg - Sony cuts PS5 production by 4 million units, $449 and $399 price

supernova8

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I would never buy a console without a disc drive so, no? I'm getting it regardless of price difference.
I mean if they gave me free PS+ forever and 2 free games at launch and a $100 price difference for the trouble of going all digital, I might consider it.
 
Oct 7, 2019
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I mean if they gave me free PS+ forever and 2 free games at launch and a $100 price difference for the trouble of going all digital, I might consider it.
Each to his own 🙂. To me digital games have no value, I want a physical collection and the ability to sell games I don't play anymore. Also, I like collector's editions. And buying used games sometimes.

So they could give me a hundred games and the console for a hundred bucks; I'd still rather pay $500 for the disc version 🤷‍♂️
 

laser_printer

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Question. Would you feel shit for paying potentially an extra $100 for the same device but with a disk drive?
No because honestly during the time of COVID I wouldn't normally consider it but considering I don't feel like dealing with shipping or with the public more than I have too digital convenience is a win to me but more than likely when they release the redesign I'll jump on it at a cheaper price with a disc drive.
 
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Max_Po

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I don't mind waiting a few weeks, since Kena is delayed.... but man I am excited.
 

RayHell

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The higher's frequency the lower's the yields. It's an interesting choice architecture wise but from production standpoint not so much. Good news is that yields gets better over time.
But i'm not worried for customers. For comparison, the PS4 shipped 7.5 million units by March 2014.
 
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Dolomite

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Have those pre-order pages refreshed and ready boys. 2020 is gonna be 2006 all over again
 

supernova8

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Each to his own 🙂. To me digital games have no value, I want a physical collection and the ability to sell games I don't play anymore. Also, I like collector's editions. And buying used games sometimes.

So they could give me a hundred games and the console for a hundred bucks; I'd still rather pay $500 for the disc version 🤷‍♂️
If only they had 100 games ready ;)
 
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Hopefully either of these systems will have hardware issues at launch.

If that happens and these systems are hard to come by due to low suppply that can be another mess just waiting to happen.
 
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Rhazer Fusion

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Highly unlikely Sony will hit $450 with the BR edition. They'd be a $150 loss on each console sold.

Not saying it's impossible as Sony may feel pressured to undercut Xbox Series X due to the Xbox performance advantage, but I'd say it's far more likely Sony will leverage their greater mindshare and exclusive game portfolio to at the very least hit price parity. I'd say it's a 50/40/10 chance with them hitting price parity (50) vs simply launching at $600 (40) so as to break even vs undercutting (10).

At $449 Sony would lose billions on the hardware and need to be very confident of a high attach rate in order to break even in the initial launch window. They aren't a cash rich company to begin with, certainly not to the degree they'd need to be to make this move casually.

That said, from a consumer perspective I'd love it. I'm likely Day One on both new consoles but have been considering waiting for a smaller re-design of PS5. A $450 launch price means I'm in no questions asked.
I thought the disc version of the PS5 was approximately $450 to manufacture. Is it even more than that?
 

Malakhov

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I want to be able to buy used games and sell mines so even a 100$ extra is worth it in the long run. Already checking prices of ghost of tsushima used copies around here
 

quest

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I want to be able to buy used games and sell mines so even a 100$ extra is worth it in the long run. Already checking prices of ghost of tsushima used copies around here
That is why I said before your a disc person or digital person. The 49.99 or 99.99 won't convert anyone. So it makes the most business sense to keep it to 49.99 and pocket the extra cash
 
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KiNeMz

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50% yield. This is concerning. I'm not a chip expert but I hope that doesn't mean we may potentially see problematic systems on the market. Also what happens to the 50% failures. Are they melted down and reused?
 

Max_Po

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50% yield. This is concerning. I'm not a chip expert but I hope that doesn't mean we may potentially see problematic systems on the market. Also what happens to the 50% failures. Are they melted down and reused?
seriously ? where the **** do you think
dildos
come from ?

You know they are not wasting premium silicon on those....
 

CobraXT

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There is no way PS5 DE be will be 400 $ with such an abysmal yields
 

LED Guy?

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I have expected the prices to be at $449 & $399 in my PlayStation 5 Showcase event predictions tweet like 2 days ago. 👀👀👀👀👀👀👀👀👀👀👀👀

Let's hope my price predictions are right.





 
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kikkis

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Aug 13, 2020
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50% yield. This is concerning. I'm not a chip expert but I hope that doesn't mean we may potentially see problematic systems on the market. Also what happens to the 50% failures. Are they melted down and reused?
How can console be 399 if yield is 50 percent? Soc must cost more than 100 dollars anyways.
 
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reinking

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I am trying to remember where we are at with this and my memory might be off from the original Bloomberg article.

Sony originally was shooting for 6 million?
Then they added 4 million?
This article comes out saying they were actually aiming for 15 million? (which none of us knew)
Now they are on pace to hit 11 million which is one million more than even the last Bloomberg article?
They will have more PS5's than they did PS4's at launch?
This is a disaster for Sony because PS5's will be in short supply?
What am I missing?





How can console be 399 if yield is 50 percent? Soc must cost more than 100 dollars anyways.
Sony might not have to eat the full cost? I honestly do not know.
 
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Jun 13, 2020
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I am trying to remember where we are at with this and my memory might be off from the original Bloomberg article.

Sony originally was shooting for 6 million?
Then they added 4 million?
This article comes out saying they were actually aiming for 15 million? (which none of us knew)
Now they are on pace to hit 11 million which is one million more than even the last Bloomberg article?
They will have more PS5's than they did PS4's at launch?
This is a disaster for Sony because PS5's will be in short supply?
What am I missing?

Sony might not have to eat the full cost? I honestly do not know.
here is another bloomberg article from July, the time that sony announced the increasing of production:


Sony began PS5 mass production in June and, under the latest plan,
expects to assemble 5 million units by the end of September
and another 5 million between October and December
so, multiply with 0.5 (yields), add freight and do the math
 

reinking

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here is another bloomberg article from July, the time that sony announced the increasing of production:



so, multiply with 0.5 (yields), add freight and do the math
Why am I adding freight when I was asking about the number of consoles being available?

unless you are saying the actual shipping times. I believe Sony has that part covered as well as they have any previous generation. This isn't their first rodeo.
 
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dvdvideo

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Kind of disturbing, makes you wonder if the yields are failing at stress. Maybe the small cu count clocked high wasn't the best strategy after all......

Hopefully this doesn't end up with approved units failing down the road.
 
Jun 13, 2020
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Why am I adding freight when I was asking about the number of consoles being available?
Because they need to travel from china to all over the world. It was announced recently that sony secured some air transport (60 flights) for USA market in October.
During pandemic flight plans usually are more difficult to arrange. But without this option, the other way takes like a month or more.
 
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jaysius

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Shit I hope Sony is generous on the CND conversion 399>524, that's too much, if it's $499(small loss) that'd be more reasonable.
 

Investor9872

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If I remember correctly, Bloomberg was the first to announce that Sony was doubling their PS5 production to 10 million units by the end of this fiscal year, March 31, 2021, not 15 million. It's still 10 million units, or 11 mil according to this article, so I don't see an issue. Either way, I don't mind waiting until after the first few batches of PS5s to see if there are any major hardware issues, as there has always been some with new hardware launches, especially something this powerful, running hot (2.23 Ghz GPU), and with the exotic liquid-metal cooling housing units.
 
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reinking

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Because they need to travel from china to all over the world. Sony announced recently that they secured some air transport (60 flights) for USA market in October.
During pandemic flight plans usually are more difficult to arrange. But without this option, the other way takes like a month or more.
Sony has used air before. At least the previous two generations. Like I said, this is not their first rodeo and I believe they have that under control.

Again, this does not answer my question about the panic.

The original Bloomberg article increased Sony's production to 10 million units. Based on the current article they are still on track to hit 11 million. That is still 1 million more units than the original article claimed. The only panic (or gloating in some cases) is coming from the 15 million target quoted in this current article which none of use knew about.
 
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Mr Moose

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Sure they did.
Up from 10M to 15, then down to 11.
 
Jun 13, 2020
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Sony has used air before. At least the previous two generations. Like I said, this is not their first rodeo and I believe they have that under control.

Again, this does not answer my question about the panic.

The original Bloomberg article increased Sony's production to 10 million units. Based on the current article they are still on track to hit 11 million. That is still 1 million more units than the original article claimed. The only panic (or gloating in some cases) is coming from the 15 million target quoted in this current article which none of use knew about.
I think it was written clear and simple in what I posted the first time.
They expected to have 5 million assembled by september (aka for launch)
and another 5 up to december.
multiply this by 1/2

In their last rodeo, they were using available technology, without any manu problems or difficulties in shipping, and there were scarcities.
 

Aceofspades

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399 would be pretty great. 100USD to jump from the gimped version of this gen to the full vision of it.

Though, that's not counting that Microsoft is actually eating some of the foreign conversion like CAD and AUD, which is very nice. If Sony doesn't do that that 100USD conversion grows.
P55 at $399 is the bargain of the century. Series S would look very bad next to it, Series S should be $150 just to match the value on $399 PS5.

Edit: I expect PS5 DE to be $450, lower than that is too good to be true
 
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Investor9872

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50% is an absurdly low yield for 7nm.
That is why I'm calling BS on this. It's not true. Bloomberg was the first to claim that Sony was doubling their PS5 output to 10 million units by the end of FY2000. Now they are claiming that number is 15m - 4m (due to bad yield) = 11m. I think it was always 10 million to 11 million in the first place, so I'm calling B.S. on this story.

I'm sticking to my prediction of a $399 - $450 for the PS5 DE, and $499 for the PS5 Disk, matching XSX. The XB has no games at launch, so there's no need for the PS5 to undercut the XSX by so much ($50 undercut = $500 million loss). And by undercutting the XSX, Sony is effectively saying that XB is a more powerful system then theirs, and I don't believe that Sony will admit that. Honestly, the XSX may have a faster CPU, more CUs and higher memory bandwidth (for 10 GBs anyway), but the PS5 has the fastest SSD on the planet right now, and that will be more beneficial to gamers. You'll see!
 
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kikkis

Neo Member
Aug 13, 2020
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I am trying to remember where we are at with this and my memory might be off from the original Bloomberg article.

Sony originally was shooting for 6 million?
Then they added 4 million?
This article comes out saying they were actually aiming for 15 million? (which none of us knew)
Now they are on pace to hit 11 million which is one million more than even the last Bloomberg article?
They will have more PS5's than they did PS4's at launch?
This is a disaster for Sony because PS5's will be in short supply?
What am I missing?






Sony might not have to eat the full cost? I honestly do not know.
Likeliest possiblity is that 50 percent yield simply isnt true. Otherwise Sony would be in fair amount of trouble.
 

DonJuanSchlong

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It's interesting how the mindset of people are in here. Me personally, if I was getting the ps5, I would go digital, and get my keys elsewhere than Sony. Same for if I got an Xbox. Digital is the way to go on PC, so it's interesting to see console players vouch for physical media.



Edit: disclaimer



Not downplaying you guys at all. Just interesting to see is all.
 
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Bryank75

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It's interesting how the mindset of people are in here. Me personally, if I was getting the ps5, I would go digital, and get my keys elsewhere than Sony. Same for if I got an Xbox. Digital is the way to go on PC, so it's interesting to see console players vouch for physical media.
Buy too many CE to do that.
 

supernova8

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I thought the disc version of the PS5 was approximately $450 to manufacture. Is it even more than that?
It's only $600 if you believe Dusk Golem. I think he's generally good with Capcom stuff but not so sure about his general Sony stuff.