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DF Direct: The Price of PS5 - Are We Looking At A $500 Console?

Fake

Member
Please trust me when I say I'm trying to come at this from as non-bias of a standpoint as I can. But are you are saying that Sony is willing to take a loss in next gen software sales but not hardware? Or are they going to take a loss on both?

Dunno, just my guess but I guess is a possibility they are looking for earning money from other sources. I should recommend watch this DF video. They have a more mature service to backup all this lost this time.

Here - 7:55


Little reminder. Both Sony and Microsoft sold PS4 and Xbox One at loss for one year or more. There is no magic or miracles anymore. Those components are expensive this time. And I'm using the bloomberg article. $450 is just the start of the manufacture price point. People are taking this $450 as some sort of 'wow PS5 will cost this', but no, $450 is where the cost start.

The reason the prices are important to the manufacturers is that the higher the price of the next gen consoles, the lower the adoption rate will be. The lower the adoption rate, the less they will make off of software sales (the biggest money maker as far as I know.) coming from those specific consoles.

Next gen AAA games are going to cost a lot to develop if current gen AAA games are anything to go by. Less adoption rate means making less money to cover that cost.
Agree, but again, different times. This loss compared with PS4 could be very high for them to accept. Actually current gen games are already very cost.

The way to mitigate this would be to not have software that was locked to a specific console. Which is why I think MS are smart for putting their games on as many of their consoles as possible right now, even though they won't be utilizing the full potential of their machine right off the bat. And less people miss out newer games while they save up to have more bells and whistles if they want. Which to me is more "comfortable" as you put it than Sony's approach of next gen console only games.
Smart not always means lucrative. Sony and mainly Nintendo have being locking their game for system sellers porpuses. Besides, we can't prove this theory without numbers, with unfortunately, Microsoft deny to show.
Reminds me one very old tweet of my saying 'with is good for consumers not always are good for devs'.

Not to mention how this complicates the split in marketing between next gen only and current gen games. Which are you going to prioritize? Current gen, where you get most of your software sales atm? Or next gen where, if your first party games are locked, you are trying to push adoption rates to make up for the crazy amounts of money you are spending developing it's software? The higher the bar to entry the harder the ladder is going to be. So then split the diff. Either way, it's more of a risk and a money sink.
100% Agree, but I guess both companies have their own analysts for doing that.


And unless I'm misunderstanding you, your analogy about PC doesn't make sense in that, your library ALWAYS comes with you and is instantly upgraded if there are settings to turn up. Which, imo, is the most comfortable of all when talking about transitioning gens.
I can be wrong, but are some games stop running on Windows 10 (Have many issues with old games like Rise of the Triad running in modern Windows 10 patch updates. I not alone in this problem)? Besides, people have some problems when we talk about PC. When I talk PC, I talking about a personal computer, not a computer running a Windows operation system with Steam installed.
My days of PC user are gone. Now I just use a notebook. Last time I updated both CPU and GPU I was forced to buy a compatible motherboard.

Again, sorry if I misunderstood. I'm actually in the middle of a project and taking a break bc my brain hurts.
No problem. English is not my main language. You're not wrong at all. Just my guess, but IMO both company have mature measures to counter all those problems, at least for a period of time. Maybe after one year PS5/seX manufacture components get cheap.
 
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Sota4077

Member
At this point a higher price is extremely unlikely to lead to materially better specs IMO, because most components must be locked in for pending production. So based off the rumored 450 production cost, I think we will get 399 for the reason DF said. Sony has a lot more profit from digital everything to offset the loss.

Good Lord that is not how that works lol. Early on in a console life cycle they are selling nowhere near enough consoles and digital sales to offset a major loss of the console. $399 is absolutely not going to happen for the justification you just laid out. Haha
 

StreetsofBeige

Gold Member
How about consoles edging up from $400 to $500? Get the benefit of MS and Sony jamming in some better specs. NOOOOOO!

I just bought a new 4k tv lately, or it's time to upgrade my 1080p to 4k. Meh, what's an extra $100.
 

CyberPanda

Banned
I believe I told you guys that the leaked $499 price was most likely correct. My contacts have told me that Sony is indeed worried about the price and them not making enough money based on the high costs of the system.
What's causing such high BOM? Cooling solution? SSD?
 

nikolino840

Member
I think most people see the cheapest option as...well cheap. And when you get up high enough a $100 difference doesn't seem all that different but of course diminishing returns the higher you go. Of course we don't know what the stats are so if it were $100 between each one I honestly think it would depend on which PS5 looks more similar to when they show off games. If they look as shiney and flashy as Series X I think it would be very good for Sony. Sony has been not most powerful nor cheapest before during PS2 and PS1 so it's not a perfect strategy for beating them
Is the trick in theaters to sell the big size of pop corn and coca cola 😁
 

CyberPanda

Banned
299 sweet spot
399 expensive, but if they can't produce a lot of them could be a option.
499 better have 2 games and a controller delivered with it and be prepared to drop that price at the end of the year.



Probably SSD
I'm gonna guess its a combination of cooling and SSD.
 

Azelover

Titanic was called the Ship of Dreams, and it was. It really was.
At this day and age, I think it's totally ok.

You know what's really gonna matter? The fucking games! If they get every major third party game, and a lot of great exclusives, they'll be fine..
 

sendit

Member
299 sweet spot
399 expensive, but if they can't produce a lot of them could be a option.
499 better have 2 games and a controller delivered with it and be prepared to drop that price at the end of the year.



Probably SSD

Option 4. Get a second job.

Next gen doesn’t start until Sony says it does.
 

Shmunter

Member
I want Sony to eat the cost and release a $500 for $399 simply make the touted Lockheart redundant. Do not want an underpowered system holding back next gen development.
 

Woodchipper

Member
Why not $399? The PS3 was sold at a bigger loss than that at launch, right? It would be a big middle finger to Microsoft, especially if they manage to release Spider-Man 2, Horizon Zero Dawn sequel and Gran Turismo 7 in 2021. That’d almost be PS2 level epicness.

In all seriousness though, I don’t really care. I’ll probably buy it day one even if it costs $600.
 
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Hotspurr

Banned
The X debuted at $500, not crazy.
Plus adjusted for inflation, we were really spoiled last gen getting consoles at $400.
A next gen console is a 5-6 year investment, so not that bad at all.
 

lachesis

Member
Well, Dreamcast launched at 199.... but that's over 20 years ago - and it's 312 dollars now. Considering that, 299 is very much unlikely.
I am fully expecting minimum $499 for PS5 and Series X.

If they are going over than that - say 599 or whatnot - I'm totally fine with it, as long as I don't have to buy any mandatory peripherals besides games... but I would expect a good HDMI cable, 2nd controller, and at least 6 month - 1 year online subscription included.

The way I see it though - is a phone cost over 1000 dollars and a mid-high end graphics card cost 4-500 bucks... with no CPU, no HDD, no optical and no OS... so 499 sounds like a good bargain for launch price.
 

Justin9mm

Member
Do some people really think that with the evolution of technology in a current world of high resolutions, complexity in games requiring large fast memory, storage and processing power, online servicing and features etc. plus higher manufacturing and marketing costs, It's still a reasonable expectation for a next gen console to still be $299 or even $399? GTFO with that shit!!

People are fucking deluded.. No wonder why consoles are held back. Gaming as a serious hobby is not cheap in general, if someone thinks $500 for a console with all their packing in it is too much, they are indeed a fucking moron.

I understand they need the price to be somewhat attractive but if it costs $450 to make, what do you expect? Go out and make your own device with the same specs or build a PC that will give you equivalent performance for $399. Sorry what was that? You can't? Exactly!
 

93xfan

Banned
And some consoles have cost $500 and $600 and they’ve tanked at those prices. Look, if your goal is to make the next PS3 or be Xbone X then by all means..
I was under the impression Sony wants to have another 100 million unit seller on its hands.

The ceiling has been established. Maybe a console will break that ceiling someday. The truth is that even as wildly successful as the PS4 has been, it still has missed out on entire portions of the market because it is still too expensive. We tend to think we are representative of the market, but we aren’t. We just get the ball rolling. It’s the other tens of millions of people who wait for price drops that make or break a console. If the price of the machine is $100 higher at launch, it’s going to be months before it gets down to even $399.

I guess we’ll see.

Not true. Every time there was a >$499, there was an alternative console at $399. If both Sony and MS go $499, consumers may accept that as the new price.

A Series S may shake things up though.
 

mckmas8808

Mckmaster uses MasterCard to buy Slave drives
I believe I told you guys that the leaked $499 price was most likely correct. My contacts have told me that Sony is indeed worried about the price and them not making enough money based on the high costs of the system.

Why would Sony be worried? They loss money on every PS4 sold on launch day.
 

sinnergy

Member
You spoke wrong. No chance.

Series S $299-$399
PS5 $499
Series X $499-$599

I find it funny you think the Series X is going to release $100 cheaper than they're currently selling the One X for now.
Yes , take the loss grow market share.
 
they are sinners in the eyes of his religion. that's basically it.

he is a die hard Sony fanboy and Digital Foundry is seen as being Xbox fanboys by fanatics like him.

can't watch those imbeciles! 🤣
Correction. I'm a PlayStation fanboy...
What kind of nincompoop are you. 😜

But basically this:
"Our" DF guy admitted singing MSFT gospel straight from script, that's all there is to that.
 
Not expecting a $399 console next gen from either one of them (not including Lockhart). The specs inside PS5 and Series X offer a bigger jump from this gen to next gen than it did from last gen to this gen no? Expecting nothing short of a $499 price point. Give us the best you've got Sony and Microsoft!
 

Sota4077

Member
299 sweet spot
399 expensive, but if they can't produce a lot of them could be a option.
499 better have 2 games and a controller delivered with it and be prepared to drop that price at the end of the year.

Lol do people actually think this way? $299 is the sweet spot? You're absolutely insane if you think that is the sweet spot. It hasn't been the sweet spot for a launch console in like 15 years besides the switch which is drastically less powerful than its competition. $299 is not only NOT the "sweet spot" it is absolutely NOT happening. God damn some of you member are silly.
 
D

Deleted member 775630

Unconfirmed Member
Why would Sony be worried? They loss money on every PS4 sold on launch day.
People are saying both systems are very similar (XSX and PS5), but we also know that PS5 has custom designs in it (pricier). If they want to stay competitive on pricing they have to eat a bit more loss than Microsoft. So they are worried that Microsoft might eat such a cost themselves that they need to go really deep in their pockets to follow. Hence their worry. I think they hope Microsoft is going for $499, and they'll match it. Worst case for them is Microsoft going for $450. This analysis is obviously purely based on the hypothesis that both systems are practically equal in power.
 

mckmas8808

Mckmaster uses MasterCard to buy Slave drives
No, they didn't. They were making money on the PS4 from day 1.


You didn't include the extra cost like shipping, manufacturing, and retail.

People are saying both systems are very similar (XSX and PS5), but we also know that PS5 has custom designs in it (pricier). If they want to stay competitive on pricing they have to eat a bit more loss than Microsoft. So they are worried that Microsoft might eat such a cost themselves that they need to go really deep in their pockets to follow. Hence their worry. I think they hope Microsoft is going for $499, and they'll match it. Worst case for them is Microsoft going for $450. This analysis is obviously purely based on the hypothesis that both systems are practically equal in power.

But MS doesn't have a lot of room to burn money on the next-gen Xbox. Look at their quarterly numbers.
 
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