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Microsoft is waiting for Sony to reveal PS5 price to undercut it with Xbox Series X, say Michael Pachter and Peter Moore

That strategy worked flawlessly with the Sega Saturn, right?

Yeah it's an uphill battle against Sony coming off last generation but releasing after Sony isn't going to do Xbox any favours. Xbox still turned around the miserable Xbox One generation but nowhere near the extent that Sony did. I'm hoping Xbox makes solid strides from the "far more" right steps than missteps they've been making in recent years. I'd truly like to see a larger population in Australia and some cross play with PC for Xbox so my favourite games and matchmaking filters stand half a chance at what I want to play with some modicum of online fairness.
 

quest

Not Banned from OT
Yes it sold more by like 1-2 million units but Xbox made more noise and was the leading platform for the Devs and profit that gen.
It was the lead platform only because if it was not it performance was shit. The 360 was much easy to work with so did not need to be the lead platform and need the extra attention to run at parity. Money made depends on who your market was eastern game of course they made more on the ps3. American centric game they made more on the 360.
 

12Dannu123

Member
But that kind of decision wouldn't exist in a bubble. You bleed money you better make it back; product becomes more of a risk, you immediately become under great scrutiny from your board of directors, etc. And I'm bringing those things up because they tend to lead to what we don't want; decisions unfriendly to the consumer later down the road.

MS might be thinking of going the loss leader route, might be basing that on what Sony does, etc.. but it wouldn't necessarily mean we as gamers win.

Microsoft isn't new to loss leader products. They do they all the time when launching new products.
 

quest

Not Banned from OT
In US and the UK, very well. Everywhere else, not so much.
This is the correct answer. Sony could crap in a box and it would still sell out in the east and mainland EU. Any gains Microsoft makes this generation will come the in America's and UK. It is a shame in a way because if Sony does screw up they should be punished. If not for the Americas and the UK we would of not gotten the great second half the PS3 generation were Sony worked hard to win customers back after taking them for granted.
 
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ethomaz

Banned
I think he is asking you to link your sources or something.
How obtuse can you be?
It is in the financial reports for each quarter.
I really won’t dig again only to post the link for him but I believe any GAF financial threads has a table with all the data.

Like that:https://www.neogaf.com/threads/sony-fy12-400m-net-income-ps3-ps2-16-5m-vita-psp-5m-forecast.555550/
Or that: https://www.neogaf.com/threads/microsoft-q4-1-1m-xbo-360-shipped.859945/

It is funny that he keep saying I’m lying without show any proof when I’m just sharing public data.

He needs to stop to be lazy and go search the data.
It just the data is true and go against his bias so he will call it made up numbers lol

I’m not obtuse... I’m being direct... do you want people to do your search too?

It is really boring to discuss the same thing already discussed in the past with people saying things that goes against public data:

PS3 sold better than 360 since begin it just 360 had a ~8m head start that made it looks like it was selling better but PS3 catch up over 1 million per year with exception of 2012 where Kinect made 360 sell more than PS3 if I’m not wrong.
 
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JohnnyFootball

GerAlt-Right. Ciriously.
That's pure nonsense.

Why? If they want to go $400 it means they would lose at least $100-$150 per unit (Series X has bigger APU die, bigger SSD so the cost has to be significantly higher than PS5' $450)
So $100 x 10 000 000 = $1 000 000 000 ($1B)

Yes, Microsoft makes $10B of pure profit every quarter but no corporation would be willingly writing off that much money...
Correct. The shareholders would quickly take notice.
 

Thirty7ven

Banned
The other day he was claiming that Phison officially confirmed that they were supplying the SSD controller for the SSD, yet he never posted a source. Apparantly, a pattern is emerging.

He just posted where you can check the numbers.

Don't know about officially, but it seems to me you don't know what Digitimes is.

The only pattern I see is some people are constantly having a go at revisionist history and daydreaming about the near future.
 

TBiddy

Member
He just posted where you can check the numbers.

Don't know about officially, but it seems to me you don't know what Digitimes is.

The only pattern I see is some people are constantly having a go at revisionist history and daydreaming about the near future.

Digitimes isn't an official source. I have no idea what you're on about with the last paragraph.
 

Thirty7ven

Banned
Digitimes isn't an official source. I have no idea what you're on about with the last paragraph.

Again I don't know about official, but Digitimes has access and they reported on it and it was quoted by reliable tech sites.

You know what I'm on about in the last paragraph.
 

TBiddy

Member
Again I don't know about official, but Digitimes has access and they reported on it and it was quoted by reliable tech sites.

You know what I'm on about in the last paragraph.

No, I really don't. I assume you're trying to be snarky or passive aggresive.

And yes, Digitimes has stated, that according to sources, Phison is supplying the controller. The claim, however, was that Phison had officially confirmed it and also stated, that they weren't supplying for the PS5. A source was never posted.
 

Thirty7ven

Banned
No, I really don't. I assume you're trying to be snarky or passive aggresive.

And yes, Digitimes has stated, that according to sources, Phison is supplying the controller. The claim, however, was that Phison had officially confirmed it and also stated, that they weren't supplying for the PS5. A source was never posted.

Saying 360 outsold PS3 launch aligned is revisionism history just like forgetting Kinect gave 360 its best years is selective memory.

You're saying you saw a pattern though, yet you're hanging on to a single word. How can a pattern be observed when there's only 1? You attacked a poster who sticks close to the facts. I won't bother asking you why, but you don't get to trash the image of somebody just because he doesn't co-write the narratives you like.
 
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TBiddy

Member
Saying 360 outsold PS3 launch aligned is revisionism history. Forgetting Kinect gave 360 its best years is selective memory.

You're saying you saw a pattern though, yet you're hanging on to a single word. How can a pattern be observed when there's only 1?

I have little interest in sales and haven't voiced my opinion on the matter, so I have no idea why you're talking about revising history and daydreaming.

He has left a discussion with me multiple times, after being unable to show a source. Usually he does a "LOL" emoji on the post and then skedaddles.
 

KingT731

Member
I can guarantee you cost wise PS5 controller is more. The cooling solution for sony im going off of patents. It could be something they have had in the works for a while, and like you said may not contribute to costs since it would be calculated as R&D.

But actuaators in PS5 controller, among the built in MIC, speaker, usb C, built in battery will add up to a 69.99 controller. I'd be shocked if it came in at 59.99.

Longer battery life was a big cost for Switch Pro controller among the Gyro sensors which is why it's 69.99. Bigger battery will cost more. And PS5 controller from what I've read has a much larger battery using USB-C for fast charging.
Not really a fair comparison as Switch controllers are ridiculously overpriced
 
I’ll tell you what... if these guys don’t make fall for these things I’m just going to blow 1000 bucks on a graphics card and call it a day. This is the worst rollout of a generation I’ve ever seen.

You don't think this pandemic put a damper on the gaming landscape let alone the entire world? I feel like a little patience is in order IMHO.
 

Gamernyc78

Banned
Common sense dumb shit. And Sony is waiting for Microsoft to reveal price like when thy slaughtered them last time. Do we really need threads for common sense takes?
 
D

Deleted member 775630

Unconfirmed Member
I think they are both going to be $499, no one is going to take the risk with a $599 console when they're both weaker in certain areas
 

SUPERGGK

Member
I don't think that MS will undercut Ps5 but I am sure that they will make sure to match the price of ps5 and use their higher tf count as a bullet point to downplay ps5 ssd and I/o advantages. They don't want to come out at a higher price point than ps5 as it will severely impact their sales. But if they could match the price of ps5 then it can make series x a very attractive proposition.
 

scalman

Member
Good plan, maybe then after sony will lower its price too to beat ms on that. Good for us at least. Lets them comoete. Imagine how much better it would be to have 3rd home console would be even more competition
 

ZywyPL

Banned
Spencer said in one live stream interview that the price is determined at the very beginning of designing a console, that it's one of the most important factor to consider before going into the whole R&D process, so I don't believe either of the two companies are waiting for each other to reveal the price. Bottom line is, they are more or less build on the same solutions, same technologies, delivered by the same suppliers, I'll be surprised if there's gonna be 50$ different between the two consoles.
 

John254

Banned
Spencer said in one live stream interview that the price is determined at the very beginning of designing a console, that it's one of the most important factor to consider before going into the whole R&D process, so I don't believe either of the two companies are waiting for each other to reveal the price. Bottom line is, they are more or less build on the same solutions, same technologies, delivered by the same suppliers, I'll be surprised if there's gonna be 50$ different between the two consoles.
Yeah, that's true. Consoles are always built with price in mind, but on the other hand, If Microsoft (or Sony) set their prices to 499€ (highly possible) they still have wiggle room in terms of final price. If one company reveals their price for 549€ (for example), then second company can decide it they just want to match the price, or undercut them by 50+€.

It's no-brainer, than Microsoft can afford bigger loss on one console then Sony and with recent promotion of the whole Xbox division in Microsoft's hierarchy i think, that Spencer has biggest support from CEO of Microsoft ever.

But my prediction is 499€ each. Microsoft then can have a marketing around "more power/same price"
 
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turtlepowa

Banned
Yeah, that's true. Consoles are always built with price in mind, but on the other hand, If Microsoft (or Sony) set their prices to 499€ (highly possible) they still have wiggle room in terms of final price. If one company reveals their price for 549€ (for example), then second company can decide it they just want to match the price, or undercut them by 50+€.

It's no-brainer, than Microsoft can afford bigger loss on one console then Sony and with recent promotion of the whole Xbox division in Microsoft's hierarchy i think, that Spencer has biggest support from CEO of Microsoft ever.

But my prediction is 499€ each. Microsoft then can have a marketing around "more power/same price"
If they really have a Lockhart, i think MS would even be fine with 50 bucks more on the XSX.
 

longdi

Banned
$600. Surejan.gif.

That's never going to happen when Cerny himself implied a consumer friendly price.

Paul is MS unofficial mouth piece? I think MS will surprise Sony bigly!

Although It is crazy to think of undercutting here, phones are going for $999 these days. 🤷‍♀️
 
That's pure nonsense.

Why? If they want to go $400 it means they would lose at least $100-$150 per unit (Series X has bigger APU die, bigger SSD so the cost has to be significantly higher than PS5' $450)
So $100 x 10 000 000 = $1 000 000 000 ($1B)

Yes, Microsoft makes $10B of pure profit every quarter but no corporation would be willingly writing off that much money...
One common myth amonst fans of Xbox, is that any time now, Xbox is going to use the entire might of Microsoft's bank account to just undercut Playstation.

What was not mentioned, is that Xbox as a whole had barely made any money in its combined existence. One good generation does not negate two bad ones. Yes, PS3 lost so much money that it wiped out PS1 and 2's profits, but at least PS4 made up for it. But Xbox just is such a tiny part of Microsoft that it has no pull. It has no ability to ask for infinite funds, because it never earned the right to infinite funds.

The "infinite warchest" myth had been around for as long as Xbox existed. What is amazing is how it survived this long.
 
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Jon Neu

Banned
One common myth amonst fans of Xbox, is that any time now, Xbox is going to use the entire might of Microsoft's bank account to just undercut Playstation.

What was not mentioned, is that Xbox as a whole had barely made any money in its combined existence. One good generation does not negate two bad ones. Yes, PS3 lost so much money that it wiped out PS1 and 2's profits, but at least PS4 made up for it. But Xbox just is such a tiny part of Microsoft that it has no pull. It has no ability to ask for infinite funds, because it never earned the right to infinite funds.

The "infinite warchest" myth had been around for as long as Xbox existed. What is amazing is how it survived this now.

The entire creation of the Xbox brand is literally Microsoft mighty bank account put in action.

And it’s a possibility that Microsoft could inject the brand with more money anytime they want to if they see that can help them make more money in the mid/long run.

And let’s not underestimate the importance of videogames, Microsoft knows they can make a lot of money from them and build an image amongst the younger generations. The videogame industry is super huge already and only seems to get bigger and bigger every generation.

I remember the days in which talking about a videogame console was something out of this world that very few little nerds knew about. Now every parent and even grandparents talk about Fortnite, Pokemon or Fifa.
 

MoreJRPG

Suffers from extreme PDS
I think they are both going to be $499, no one is going to take the risk with a $599 console when they're both weaker in certain areas

The only real difference is how much that custom SSD costs to produce. Xbox has the more superior components in the areas that cost the most(GPU & CPU) so it’ll be curious to see where both land price is wise. If Sony had the Xbox SSD with their specs, anything more than 499 would be a scam.
 

THE:MILKMAN

Member
A possible scenario. Both announce the same price between $399-$499 and if one falls notably short on pre-orders after a few weeks price will be reduced before launch.
 
Only way I can see that happening is if the PS is 499 and the Xbox 449.

399 seems impossible for both unless they take BIG losses
 

KungFucius

King Snowflake
I can't see price being fixed. It's most certainly a target and the BOM may exceed the point of profitability,
A possible scenario. Both announce the same price between $399-$499 and if one falls notably short on pre-orders after a few weeks price will be reduced before launch.

While everything is possible, this is extremely unlikely. They would not make up a disparity like that by reducing the cost 50 bucks and that would put them in deeper shit because they would be at risk of not getting into higher volume/ lower cost production. It would 'cost' money to refund the original preorders and would send a really bad message.
 

geordiemp

Member
Does not matter who goes first and what price differences are day 1 really.

Corporations can add in free game or not, or easily add free services for such products as plus or gold or gamepass.

So one console comes out day 1 at 50 bucks more, throw in free game. Easy....And we are back to evens.
 
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THE:MILKMAN

Member
Only way I can see that happening is if the PS is 499 and the Xbox 449.

399 seems impossible for both unless they take BIG losses

$399 might well be out of reach but I still think on the whole the BOM of these consoles are being overestimated. The same happened with PS3 and in the end it was sold at $60 loss ( minus shipping/retail cut) and then subsidised by the EU for 6 months.

There are also the current gen factors that could allow a lower than expected price. Massive digital/PSN/Live revenues/profits, price being kept closer to the OG price for years rather than multiple cuts, minimal investments/costs of doing revisions and slims etc.

At the end of the day if they do come in >£400 in the UK it will take certain specific games for me to get one day one. The price will reduce very quick so wait another short while would be no problem.

While everything is possible, this is extremely unlikely. They would not make up a disparity like that by reducing the cost 50 bucks and that would put them in deeper shit because they would be at risk of not getting into higher volume/ lower cost production. It would 'cost' money to refund the original preorders and would send a really bad message.

I guess and I forget in America pre-orders are payed in full usually? That would make it hard to do for sure. The point is it seems neither of Sony or Microsoft are going into next gen with a mess up as yet and if both show amazing games as expected then only price is there to be played with. If one dares to go $499 they just know the other will go lower. One has to go first with the price announcement....
 
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