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Do you think Sony will subsidize the base PS6 at launch, if so what's highest you think they'll go?

Do you think Sony will subsidize the base PS6 at launch, if so what's highest you think they'll go?

  • I don't think they'll subsidize it at all

    Votes: 50 47.2%
  • Under $100 USD per unit

    Votes: 40 37.7%
  • $100 to $200 USD per unit

    Votes: 12 11.3%
  • $200 to $300 USD per unit

    Votes: 0 0.0%
  • More than $300 USD per unit

    Votes: 4 3.8%

  • Total voters
    106

vivftp

Member
First, let's be clear that this thread is referring to the baseline PS6 console, not the Portable or any other variants. Now we don't know if they'll do separate disc/digital models again, so please clarify your vote in your post if you'd like.

Now, there's a lot of speculation over when the PS6 family of consoles will arrive, what the economy will be like at that time, and what the tech sector might look like. We can't know any of that, so this is a prediction thread that we can look back upon in the future. The question is simple, do you think Sony will subsidize the PS6 baseline console at launch and if you do, how much do you think they'll subsidize it to hit their target MSRP?

Historically Sony's subsidized their new gen of consoles at launch. This data is from my own online searches, so hopefully it's accurate. With the PS4, Sony lost about $18 - $61 per unit. With the PS3, Sony lost about $240 - $300 per unit. Let's look at the hit that a new console gen takes on their profits from a historical perspective: (I'm only now realizing that one chart below says millions of Yen and one says billions of Yen, but oh well, I'm just looking at the relative scale of each year)

fh-ZK17j.png


We can see that Sony has historically been willing to subsidize to hit a target price, even if it meant taking a loss on their profits initially. The PS5 was the first gen where Sony was able to not only reverse that trend, but pull in a record profit, but of course this was also during the first year of the pandemic where video game sales ballooned. Let's take a look at another chart showing how things have gone in subsequent years:

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So we can see that Sony has increased their profits since the PS5 launch, meaning they have a far larger cushion to fall back on should they decide to heavily subsidize the PS6. They're operating on a completely different scale now than they were during the PS3 gen. I mean the entire disastrous 4 year stretch of losses during the PS3 gen is pretty much on par with their profits of just this FY alone, and I think this chart is only showing the first 3 quarters! So SIEs capacity to potentially subsidize the PS6 is massive, if they really want to try and hit a specific target price. Remember they were eating $240 - $300 per unit on the PS3, and they could tank that right now while still pulling in a massive profit.

So while we don't know what the future will hold, what's your guess on how much you think Sony will be willing to subsidize the baseline PS6 to hit their target price?
 
I voted under $100, but I think neither Sony nor MS want to subsidize hardware any longer. The next gen consoles will simply be Premium hardware.

The PS6 handheld Canis will be for the masses. Or a Lite variant with the Canis internals.
 
Sony won't subsidize shit. It took them 12 years to recover from the PS3 disaster. Also their profits aren't really that special. In 2023 they were at the level Nintendo was in 2008 already.
fgONJ1gn_o.jpg
 
I think they'll be willing to put up to 100 dollars TOPS. I expect the ps6 to be 599 to 699. Probably closer to 699.

My thoughts on this seem to change daily because last week I thought it could be 799 to 899 but if they are waiting a year or two then that changes things.
 
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There is no need to subsidize. People should start spending money on luxury goods. TSMC is increasing wafer prices every year, and things will be more expensive from now on.
 
What urge do they have to absolutely sell tons of hardware at launch ? All games are going to be cross gen anyway.
 
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They may subsidize it a little bit in Japan to help its sales there.

No chance they do anything in markets where they are dominant already, at least during the cross-gen period (2-3 years).
 
They wont subsidise it much. Their profits will take a nose dive.

Its for core audience who will buy the system no matter what. So will be high priced.

There will be other systems for casual audience. Though I dread at the idea of a affordable handheld. Ideally handheld should be more expensive so its not gimped.
 
Up to $100 tops to reach a mass‑market price point, and then offset it through higher PS+ tiers, digital game sales, MTX, accessories, etc.
 
I doubt they will subsidize it at all, but they won't really make a profit on it either. They'll sell it close to cost. People will be used to paying more for electronics that contain DRAM/VRAM and NAND by 2028.
 
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What urge do they have to absolutely sell tons of hardware at launch ? All games are going to be cross gen anyway.

To maintain and grow their overall userbase. The PS5 will eventually grow long in the tooth and users will migrate away to other options, so there will be a need to shift folks to their next platform to keep them in their ecosystem. The PS5 was built on top of the massive userbase of the PS4 while it found its footing and the PS6 will be built on top of the massive userbase of the PS5 while the PS6 finds its footing and establishes itself.

Sony has to answer to investors, and a new console gen selling like shit will have consequences, both in the short and long term as the userbase would eventually erode. There is a balance to be stuck as investors also want to see profit rolling in, which is why I think two of the biggest factors that will help SIE cushion the blow will be the live service initiative, and GTA6. By the time next gen arrives they'll have several more live service games running and the recurring revenue from those games will help to bolster their bottom line and give them more wiggle room should they need to go harder in subsidizing the PS6 while maintaining profitability. And GTA6 is a gigaton title that'll bring in an enormous pile of cash and increase their userbase even more. Those two factors alone will help to provide the stability I think they'll need to ensure the PS6 is sold at a desirable mass market price so grow its userbase, while maintaining profitability to appease investors.
 
Wasn't the lack of subsidy the reason Europe turned Apple into a 'general computing device'.
Europe, you need to put Sony into the same category and force Playstation to allow other stores on the system if they don't do a big razor blade subsidy.
 
Probably won't sell at a loss, but Sony is still beholden to stock holders who will want increased revenue as soon as possible.
 
The only reasonable thing to do is to wait for the AI market to crash, so hardware prices will go back to normal.
 
Not sure where the narrative that Sony doesn't want to subsidize anymore even comes from (outside of the fact that they obviously don't want to keep losing money on 6yo hardware when it's not officially discounted and outside of Japan). They obviously will.
 
To maintain and grow their overall userbase. The PS5 will eventually grow long in the tooth and users will migrate away to other options, so there will be a need to shift folks to their next platform to keep them in their ecosystem. The PS5 was built on top of the massive userbase of the PS4 while it found its footing and the PS6 will be built on top of the massive userbase of the PS5 while the PS6 finds its footing and establishes itself.

Sony has to answer to investors, and a new console gen selling like shit will have consequences, both in the short and long term as the userbase would eventually erode. There is a balance to be stuck as investors also want to see profit rolling in, which is why I think two of the biggest factors that will help SIE cushion the blow will be the live service initiative, and GTA6. By the time next gen arrives they'll have several more live service games running and the recurring revenue from those games will help to bolster their bottom line and give them more wiggle room should they need to go harder in subsidizing the PS6 while maintaining profitability. And GTA6 is a gigaton title that'll bring in an enormous pile of cash and increase their userbase even more. Those two factors alone will help to provide the stability I think they'll need to ensure the PS6 is sold at a desirable mass market price so grow its userbase, while maintaining profitability to appease investors.
Okay. And how do you achieve this when the only way to release a console worth buying, meaning that it creates a technological gap, is to make it double the price of your current product ? And you can't even drop the price of your current product, on top of it.

Are you expecting them to stop selling the 500$ PS5 and sell only a 1000$ PS6 ? How well will this work ?
 
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Not sure where the narrative that Sony doesn't want to subsidize anymore even comes from (outside of the fact that they obviously don't want to keep losing money on 6yo hardware when it's not officially discounted and outside of Japan). They obviously will.

The narrative comes from Phil Spencer lovers, the guy who is now telling them to pivot to a $1200 PC after saying this to shit on PS5 Pro



Phil-Spencer-1000.png
 
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The X axis in your graph uses raw profit when profit margin is more indicative of what you're trying to show. Sony's profitability took a hit this year for subsidizing the PS5 through the holidays. I can't imagine it being able to sustain heavier subsidies for a future, more expensive console in today's component market. Even getting consoles at cost would be subsidy enough these days.
 
Sony won't subsidize shit. It took them 12 years to recover from the PS3 disaster. Also their profits aren't really that special. In 2023 they were at the level Nintendo was in 2008 already.
fgONJ1gn_o.jpg
This is a dumb take. the profits now from subs and selling digital games plus dlc and other stuff is not even comparable to ps3 era. they been selling ps5 for 399$ for like 4 months now.
 
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Okay. And how do you achieve this when the only way to release a console worth buying, meaning that it creates a technological gap, is to make it double the price of your current product ? And you can't even drop the price of your current product, on top of it.

Are you expecting them to stop selling the 500$ PS5 and sell only a 1000$ PS6 ? How well will this work ?
We know the specs, it's not a $1000 product.
 
Being that I expect the PS6 to cost $700 at launch, and an option $100 disc drive... I believe that will be the post $100, subsidy price.
 
The design is the subsidy.

I think their target is $500 and $600. Given that the next Xbox's are rumored to be $1000+ devices (DOA probability = high), Sony will be motherfucking comfortable launching one of the PS6 models at $600.
 
The design is the subsidy.

I think their target is $500 and $600. Given that the next Xbox's are rumored to be $1000+ devices (DOA probability = high), Sony will be motherfucking comfortable launching one of the PS6 models at $600.
$600 was always a pretty good price, honestly.
 
Okay. And how do you achieve this when the only way to release a console worth buying, meaning that it creates a technological gap, is to make it double the price of your current product ? And you can't even drop the price of your current product, on top of it.

Are you expecting them to stop selling the 500$ PS5 and sell only a 1000$ PS6 ? How well will this work ?

Oh, guess I might as well post my PS6 family price predictions - they remain unchanged from what I've guessed over the last couple years, even in the face of all the pricing madness that's occurring. I think Sony will have designed the PS6 economically enough, and will subsidize enough to hit these prices as they'll want PS4 and PS5 gamers to migrate over to the PS6 family at a record pace. So even if they have to eat $200+ per unit at launch, I think they'll aim for these prices.

$499 PS6 Digital
$599 PS6 Disc
$499 PS6 Portable

And if they happen to put the Portable guts into a PS6 Lite box, then:

$349 - 399 PS6 Lite


I think that Sony's historically shown that they know they have to spend money to make money, and the monstrous profitability cushion they're sitting on will make pulling that off easier this time around. Plus as I noted earlier, I think that cushion will be considerably larger by the time the PS6 arrives, due to the live service initiative and GTA6.
 
There is no need to subsidize. People should start spending money on luxury goods. TSMC is increasing wafer prices every year, and things will be more expensive from now on.
Im quite sure that people are "spending money on luxury goods" when they pay for their system. Do you mean to say "people should spend more money on luxury goods"? If so, why would you wish for things to be artificially higher than what the market currently demands?
 
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They did some lame $10 credit with PS4, I would think they would go that route, subsidize with freebies. So maybe a couple of months of PS+ premium and stack that with PS6 enhanced PS5 classics.
 
Since the PS4 Sony really designs the Consoles for a price because they know that they can only sell games, subscriptions and get their 30% cut, if the Consoles sell in high numbers.
Even if they give a rather large subsidise with over $100, with the large number of payed subscription today they would still earn A LOT of money.

I assume they will target $500, even $600 for a console without disc drive would be a hard ask. I am sure Sony has a size that they get good prices for the components, so the costs for them will be lower than we all expect.
 
Ps6 i think will still be subsidised but nothing crazy.

Handheld i think will be sold at a profit.
 
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not a snowballs chance in hell.

Sony will still expect to make a profit from sales so you better warm up to a $1000 console.
 
We know the specs, it's not a $1000 product.
The price is what the market will support, specs have nothing to do with it, just look at Nintendo. Sony next gen will be alone when it comes to high-end consoles after Microsoft burned this generation.
 
Even at 700$ the issue remains exactly the same.
It doesn't because there is an obvious difference between both prices.
It might be close to that now.
I'd seen $800 suggested with the memory hikes, and this is not accounting any subsidizing they could (will) be doing.
The price is what the market will support, specs have nothing to do with it, just look at Nintendo. Sony next gen will be alone when it comes to high-end consoles after Microsoft burned this generation.
Microsoft has been nonexistent in the console market for the last year and Sony still saw the need on taking losses the last quarter in order to discount the PS5 for BF deals, which itself generally targets price-conscious consumers.
 
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