RCU005
Member
But the SSD is very expensive, there is no way that thing is cheap!
According to who? Do people have insider information about the deals that Sony do with suppliers about the cost?
When the Xbox Series X specs were announced and said it was a 12TF console, everyone was saying the thing wouldn't cost less that $600 USD. However, they are selling it at $499 (with people even believing that they could cut the price in response to Sony because they showed an ERP).
But Microsoft is so big they can afford to lose more money on each console!
According to who? Do people have insider information about how much money are companies willing to lose on each product they make?
Then, there's the fact that people ignore, which is that EVERY COMPANY that develops a product, they have to design each product based on a target price. They don't make a product out of gold and say, " Oh well, I guess we'll have to sell it at $10,000". They KNOW they need to hit a selling price point, and they need to design the product around that target. If the product goes higher than that, it will only be approved if they are willing to take the loss, they will never allow to build a product with the mindset that they will sell it at a higher price (unless the market allows it).
I'll make sure to edit and add the link when I find it, but there was an interview with Mark Cerny about the PS4 design, and he said that they were set on selling it at $400, and they had to make compromises to make sure they hit that target. Of course it will be the same for the PS5
There is no way that Sony didn't want to limit themselves to a $400. If they approved a $500 console, it's because, like I wrote above, the market allows it. How do they know the market allows it? They spend a lot of money doing market research.
Then, there's the fact that the PS5 Digital Edition exists. If they were willing to do two models, it had to be because they still wanted to hit a target price. If they knew they could go to $500, but still wanted to hit $400, they do a lowered SKU. Why did Microsoft make the Series S? Because they wanted a lower price point, but this time, they needed to lower the specs to hit THAT low of a price point. Sony might be able to take the cost of a Disc Drive.
Another thing that it's important to take into consideration, is that Sony could make a 50TF, 40 GB Ram console and sell it at $3,000 USD. Of course there might be people who says "Wow! 50TF at JUST three thousand dollars? that's a steal!, but is that something that Sony would want as a business? Is that the market they want to be in? The answer is NO!.
The market Sony wants is the market Sony has, and it's 100 million big. They want to keep as much as possible. They know that 100 million people are willing to pay $400 for their console. They are so willing to pay it, that Sony did NOT have any real price cut the entire generation! So, what makes you think they will say " whatever, we will sell the PS5 at $600!"
IMO, the most realistically price point the PS5 can be is $399 for the PPS5 DE and $499 for the PS5. If course they can say "Fuck it! and announce that it will be higher", but of course they haven't done anything that would point they'd do that.
According to who? Do people have insider information about the deals that Sony do with suppliers about the cost?
When the Xbox Series X specs were announced and said it was a 12TF console, everyone was saying the thing wouldn't cost less that $600 USD. However, they are selling it at $499 (with people even believing that they could cut the price in response to Sony because they showed an ERP).
But Microsoft is so big they can afford to lose more money on each console!
According to who? Do people have insider information about how much money are companies willing to lose on each product they make?
Then, there's the fact that people ignore, which is that EVERY COMPANY that develops a product, they have to design each product based on a target price. They don't make a product out of gold and say, " Oh well, I guess we'll have to sell it at $10,000". They KNOW they need to hit a selling price point, and they need to design the product around that target. If the product goes higher than that, it will only be approved if they are willing to take the loss, they will never allow to build a product with the mindset that they will sell it at a higher price (unless the market allows it).
I'll make sure to edit and add the link when I find it, but there was an interview with Mark Cerny about the PS4 design, and he said that they were set on selling it at $400, and they had to make compromises to make sure they hit that target. Of course it will be the same for the PS5
There is no way that Sony didn't want to limit themselves to a $400. If they approved a $500 console, it's because, like I wrote above, the market allows it. How do they know the market allows it? They spend a lot of money doing market research.
Then, there's the fact that the PS5 Digital Edition exists. If they were willing to do two models, it had to be because they still wanted to hit a target price. If they knew they could go to $500, but still wanted to hit $400, they do a lowered SKU. Why did Microsoft make the Series S? Because they wanted a lower price point, but this time, they needed to lower the specs to hit THAT low of a price point. Sony might be able to take the cost of a Disc Drive.
Another thing that it's important to take into consideration, is that Sony could make a 50TF, 40 GB Ram console and sell it at $3,000 USD. Of course there might be people who says "Wow! 50TF at JUST three thousand dollars? that's a steal!, but is that something that Sony would want as a business? Is that the market they want to be in? The answer is NO!.
The market Sony wants is the market Sony has, and it's 100 million big. They want to keep as much as possible. They know that 100 million people are willing to pay $400 for their console. They are so willing to pay it, that Sony did NOT have any real price cut the entire generation! So, what makes you think they will say " whatever, we will sell the PS5 at $600!"
IMO, the most realistically price point the PS5 can be is $399 for the PPS5 DE and $499 for the PS5. If course they can say "Fuck it! and announce that it will be higher", but of course they haven't done anything that would point they'd do that.