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News Rumor French Retailer Leaked PS5 Prices Plus Launch Lineup Maybe

NickFire

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Mar 12, 2014
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Really surprised if it does end up $100 cheaper for the diskless machine, it really doesnt make sense. They must really want you to buy that version.
It makes perfect sense if you understand two concepts: 1) loss leaders; and 2) more profit on digital game sales.
 

mckmas8808

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A $399 PS5 makes the value proposition of the XSS look terrible. Yes, it's a $100 and to many that is a lot of money, but the prices are still very close.
Let's all be honest with ourselves here. $100 is nothing when it comes to gamers. The Nintendo Switch is still selling at $300 worldwide and it's selling like hotcakes. The base PS4's still cost $300!!!! That damn system has been on the market for 7 years! And it's sold about 115 million units worldwide. Both of these consoles are the fastest-selling consoles in world history.

Why is it that "all of a sudden" people think gamers are broke and have no money?
 
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Michael Hawk

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100 dollar/euro spread between digital and 'classic' is pretty brutal if true. It probably shouldn't even be $50, but that would be more understandable. $100 for a damn disc drive (before I get jumped on by people citing retail prices for 4K bluray players, you know damn well sony is not paying anything remotely close to those types of prices).
It's less about the bluray drive and more about the business model behind it.

If it's a $100 difference, this means Sony is more than likely taking a bigger hit on the DE with the intention of making that money back via digital transactions. It makes sense; lose some money on hardware, make more money on software.
 
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Golgo 13

The Man With The Golden Dong
Jun 14, 2014
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Well if that was true it certainly wouldnt make sense as they are pushing the diskless version way more.
Big thing about the diskless version, if that even though they may take a $100 loss initially, they make that money up down the line tenfold by

1) Eliminating physical media sales (which have a much smaller profit margin than digital).
2) Eliminating the possibility the user ever buys a USED GAME, which is unfathomable in how much money that saves Sony. So it makes sense in many ways, it's playing the "long game" very intelligently.
 

NickFire

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Let's all be honest with ourselves here. $100 is nothing when it comes to gamers. The Nintendo Switch is still selling at $300 worldwide and it's selling like hotcakes. The base PS4's still cost $300!!!! That damn system has been on the market for 7 years! And it's sold about 115 million units worldwide. Both of these consoles are the fastest-selling consoles in world history.

Why is it that "all of a sudden" people think gamers are broke and have no money?
Speak for yourself rich man!

Some of us spent all our money on micro-transactions. :messenger_tears_of_joy:
 

prag16

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It's less about the bluray drive and more about the business model behind it.

If it's a $100 difference, this means Sony is more than likely taking a bigger hit on the DE with the intention of making that money back via digital transactions. It makes sense; lose some money on hardware, make more money on software.
Sure, but someone upthread already explained why a $100 gap seems unlikely to pay off for them from that standpoint. The people buying the digital edition were probably mostly digital to begin with even this past generation, therefore you're not necessarily converting very many sales from physical to digital. I guess we'll see.
 

rofif

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again... 100 for including a disc drive is way too much. NO... IT DOES NOT compare to cost of standalone bluray player. Putting that stupid laser in ther is probably like 7usd
 

Ogbert

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Big thing about the diskless version, if that even though they may take a $100 loss initially, they make that money up down the line tenfold by

1) Eliminating physical media sales (which have a much smaller profit margin than digital).
2) Eliminating the possibility the user ever buys a USED GAME, which is unfathomable in how much money that saves Sony. So it makes sense in many ways, it's playing the "long game" very intelligently.
What you have just written gives competition lawyers and regulators genuine erections.
 

sinnergy

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again... 100 for including a disc drive is way too much. NO... IT DOES NOT compare to cost of standalone bluray player. Putting that stupid laser in ther is probably like 7usd
Yes , but it’s more based on value for the customer.. disc can be loaned , returned , exchanged, etc ..

I think it’s the right price and model .
 

rofif

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Yes , but it’s more based on value for the customer.. disc can be loaned , returned , exchanged, etc ..

I think it’s the right price and model .
if bc will be ps3 and ps4, then many ps3 and ps4 games can be bought very cheaply. I have a library of ps4 exclusives on shelf. I will have to get 500usd version
 

Ellery

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again... 100 for including a disc drive is way too much. NO... IT DOES NOT compare to cost of standalone bluray player. Putting that stupid laser in ther is probably like 7usd
It is 100$ cheaper (if it is true) because Sony wants people to go all digital. Even at $399 the console is eventually more expensive (for consumers) than the rumored $499 with disk drive.

Basically Sony is saying "you can save 100$ now so we can easily make 300-400$ more from you over the course of the next 7 years"
 
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rofif

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It is 100$ cheaper (if it is true) because Sony wants people to go all digital. Even at $399 the console is eventually more expensive (for consumers) than the rumored $499 with disk drive.

Basically Sony is saying "you can save 100$ now so we can easily make 300-400$ more from you over the course of the next 7 years"
Yeah probably. Going all digital is probably wise and so on. I have over 500 steam games but there is value in real disc games too. I can display them but with the risk of disc degrading over time (which is not a huge risk).
I can play offline, buy cheap games and sell. I still have my 360 collection and to say the truth, The console is barely working on but games are fine :p
 

Dynasty8

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Jan 30, 2014
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Posted this before but the numbers don't really work out.

At $100 gap they'd likely break even by generation end. You could argue that makes it worth it, but it is risky.

Depend on the estimates you want to believe you're looking at about $10 extra in Sony's pocket from a digital sale vs. physical. The trap is to say that means all they need to do is sell 10 titles to make that $100 gap up. But that's forgetting that firstly it isn't a $100 cost gap as there's no optical drive, it is more like a $70/80 cost gap. But it would still be a mistake to say they only need to sell 8 titles as people are already buying digital games so Sony already gets those juicy 10 extra dollars. You would instead need to convert 8 physical sales into digital ones to generation an additional $80 beyond what you already would have done.

Also consider who is the type of person that might readily switch to a digital only console. It is important to note that whilst someone might buy a lot of digital it doesn't mean they'd be willing to go exclusively digital. The user is likely going to be someone who already heavily buys digital. And if that turns out to be true then there's not going to me many physical purchases that you're converting into digital for that type of user.

It may be that they have some additional revenue streams to announce (something like a Game Pass or cloud product) that could yield additional revenues to make that profit elsewhere.
I am not 100% sure how accurate this still is, but I remember reading a report years ago (360/PS3 gen) that retailers take approximately 25% ($15) of the cut. Also, given the fact that next gen will be priced at $70, that'll probably be additional profit for Sony now. The main takeaway here is used games. Console manufacturers lose a TON of money on consumers purchasing used games vs new/digital. I know many who finish some single player games and then immediately list them on eBay afterwards, myself included. I'm hoping they do $399 for digital, eventually this industry is going to go all digital at one point anyway. Betting in the next 10 years it'll happen.