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Would A More Expensive PS5 Price Be Justified?

Tqaulity

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From the tidbits we've been hearing from both Sony and Microsoft, I'm starting to see a real possibility that Microsoft will undercut Sony in price. It seems almost a given at this point that the PS5 will be more expensive than the PS4 was at launch (>$399). Also, Microsoft is pretty adamant about getting the leg up on Sony for this console launch and we've heard rumors about everything from them undercutting Sony in price to launching the Series X several months early. Most people seem to perceive that the Xbox Series X is offering more from a hardware standpoint since it has a bigger GPU with more TFLOPS and thus will be the more expensive of the two if they were not equal in price. However, when you think about, the PS5 does in fact offer a lot more from a hardware standpoint that adds up in terms of cost. We got a custom cooling solution that is reportedly pretty expensive, ultra fast custom SSD (2x faster), lots of custom hardware for I/O and other features, custom 3D audio hardware, feature packed controller with speakers, microphone, advanced haptic feedback, adaptive triggers, motion senors, LED lighting, touchpad and more (not present on XBSX controller). All of this with a build quality and attention to detail that appears (nobody has seen the PS5 in person yet) to be superior compared to the Series X (the micro PlayStation symbols for the texture on the controller :)) .

We've seen the more expensive systems fair worse at launch in the last two generations. The Xbox One was condemned out of the gate for being priced higher while having lower spec hardware and less features meaningful to the core gamers. The PS3 was also prohibitively expensive and suffered at launch although many could at least see it's value given all that is had to offer (i.e cutting edge tech in Blu-Ray and Cell, Full PS1 and PS2 backwards compatibility, range of multimedia features, and HDMI out of the box). Keeping in mind that Xbox was already well behind this generation, I think a higher price tag would do worse for Microsoft than it would Sony for next gen. Sony has been saying for years that the PS5 is a "premium" console and they have been careful to avoid speaking about price directly and focusing on value. I think they have accepted that the price for their vision is to likely come in higher than PS4 did and they will sacrifice some initial marketshare. That said, they still have the PS4 (and PS4 pro) that will offer a cheaper entry point into PlayStation which they will continue to promote and push for the next few years at least.

My Take: I don't think it would be unreasonable if the PS5 was in fact more expensive than the Series X. I think that will be a big win for Microsoft as they are coming from a position of trailing the PS4 pretty significantly and need to make up ground. I think it will lead to Microsoft gaining some ground initially and make the start of next gen much more competitive. That said, i don't think that Sony will be doomed but they will probably have a slower launch relative to PS4 (and PS2 for that matter). I think Sony is focused more on not bleeding money despite their premium console (a la PS3) and will still push the PS4 and PS4 pro in the foreseeable future as viable alternatives. It would be great if they both were the same price but if one had to be more expensive than the other, I think it's more likely to be the PS5.

What say you guys?
 
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kingpotato

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This sounds exactly right. Sony has been here before and know the risks associated with exotic hardware designs. They are fighting for brand image as much as market share. They probably feel more comfortable taking risks like this based on their worldwide position. At least this time around it's supposed to be a developers dream to work with.
 

-Arcadia-

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I don't think so. The same price would be fine, but if Series X truly does end up with better looking games (worth noting that all the most impressive next-gen games are on PS5 rn), having a higher price is always worse in that scenario.

You're giving consumers reasons to not engage with you, and you don't want to do that.

I don't expect it to be, for what that's worth. The Cerny overseen systems (apparently Vita too), have always delivered bang for a relatively reasonable price.

I also don't think that the same company that took pains to keep the Pro's price at $400 via some clever hardware and software usage, is taking a go-for-broke approach to next-gen.
 

DrScissorsMD

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I honestly think XSX being $50-$100 cheaper would be best case for all, in the sense that Xbox makes up a bit of ground and PS continues to lead. There’s not really any scenario short of your PS5 punching you in the face when you buy it that will make Sony lose the lead, but I think conceding even a bit of market share would keep things competitive and have no negative impact on their output.
 

prag16

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I'd be shocked if they're not both $499. Lower and they take a bath, higher is the kiss of death. Though with the two 'versions' of the PS5 it'll be interesting what they do. Maybe same price for both with a larger SSD for the discless version?
 
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Tqaulity

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I'd be shocked if they're not both $499. Lower and they take a bath, higher is the kiss of death. Though with the two 'versions' of the PS5 it'll be interesting what they do. Maybe same price for both with a larger SSD for the discless version?
I think $499 is the reasonable estimate for both. But if Microsoft attempts to undercut Sony, then we may see:

$499 - PS5
$449 - PS5 w/o Disc
$399 - Xbox Series X
$299 - Xbox Series S (i.e. Lockhart)

Frankly, I don't see MIcrosoft selling Series X for under $299, especially when they will have a lower priced Xbox on the market with Lockhart. Along with that, I have a hard time seeing the PS5 as being more expensive than $499, unless it's some crazy bundle that may include a game, camera, console stand, and headset for like $599 or something.
 
Oct 16, 2017
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PS3 was very reasonably priced... but it was also too expensive.

Every game generation, we have threads started by people who want expensive consoles. These same people refuse to understand how small a minority they are, and how suicidal it is to give them what they want.
 
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Dargor

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It might be more expensive, console makers are known for making really stupid and disastrous decisions. With that being said, it has already been made clear that I dont think it would be justified.

They are already weaker in pure horse power, being more expensive would make things even easier for ms from a marketing pov. Not saying that would ruin this gen for sony, mindshare and market share wise, they probably can take the hit, but would be really pushing it, imho.

Let’s forget Tflops since that seems to be a weird topic now with this new gen for some reason. The xbox has the better gpu, cpu and memory bandwidth. Also, the Ps5’s ssd is two times faster?

As far as I am aware, yes, the ps5 ssd is at least two times faster.
 
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Rikoi

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I'm more curious about the price difference of the no disk/disk version.
Is 50$ cheaper really enough to convince people to never buy disks or get games from friends and family?
Seems like a short term gain for a long term loss.
 

bender

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It would be a mistake. I kind of feel like both sides are waiting for their price announcement so they can react to the other. Sony has some new leadership in place and are do for a blunder so nothing would surprise me.
 

Iced Arcade

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Those are some nice justifying spins, you definitely have spiderman posters on your walls.

Changing more for weaker tech is possible, Nintendo reaping cash with the Wii and switch.
 

bitbydeath

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I wouldn’t be surprised if it cost more than XSX due to all the custom silicon and three, yes THREE CPU’s.
 
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Bo_Hazem

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Even $100 more than XSX will be sold out within few hours. But both BOM suggest $450 for PS5 and $460-520 for XSX.

Based on Mr. Ahmad’s estimates, the Xbox Series X cost to manufacture will be $460–$520.



Lockhart will make it even worse with lower sales target = higher BOM.
 
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It would only be justified if they showed me games that truly wowed me. Good fucking luck with that, tho. I'm getting to be a pretty jaded bastard.
 

vaibhavpisal

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Microsoft is not necessarily going to undercut ps5.

They would be looking at how gamepass can subsidise console while still giving good margins for game development.

If they are able to come up with good enough model, they might be able to undercut ps5 while having enough funds for big budget blockbuster games that would further increase gamepass install base.

I doubt they are focussing on ps5 while discussing price. If it comes out to be below ps5, it would purely be coincidental, and would be a result of efficient ecosystem.
 

acm2000

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Both MS and Sony shouldnoffer mobile phone like plans, 24 month contract, pay for the console with little to no interest and then live gold/psnplus included in whatever the price is each month.

Can upgrade for gamepass etc too.
 

Men_in_Boxes

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How crazy is this place going to be when they announce the cheaper SKU for $399?

It's happening folks.
 

ZywyPL

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It would be 2013 in reverse if the bigger, less powerful console would be expensive. But given that both consoles are practically identical, it will all come down to a business decisions rather than actual BOMs.
 

Gavin Stevens

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Some people have a really hard time with understanding that the lockheart specs talked about would provide a next gen experience just at 1080p, which is more than fine for a lot of people. So they talk about how it will cannibalise sales, or hold next gen back, without actually thinking for a second that it won’t hold a thing back anymore than the ps5 will hold the series x back.

But the truth of the matter is I know a lot of people will buy the Ps5 even with a weaker overall system that would be a full £200 more expensive. That’s just how it works. Same way people will play twice as much for an iPhone that does less than an android. People want the label because they want the experience associated with the label. And no amount of price lead will change these people’s minds, they will buy a PS5 over and Xbox even if they were given away at McDonald’s.

I do see the Xbox being the cheaper version. Both the Series S will be cheap, but also the Series X will be cheaper than the PS5. A lot of people report on how the Xbox BOM is higher some how, but... really think about that reporting for a second, and maybe you will get your answer.

The most likely price situation they will all be in will be (highest to lowest): PS5 > XSX > PS5D > SXS. The true wildcard really is the Lockheart (Series S) as everybody is divided on if it will hurt sales or bump them. Either way, it won’t hold next gen back, you muppets.
 
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Bo_Hazem

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Some people have a really hard time with understanding that the lockheart specs talked about would provide a next gen experience just at 1080p, which is more than fine for a lot of people. So they talk about how it will cannibalise sales, or hold next gen back, without actually thinking for a second that it won’t hold a thing back anymore than the ps5 will hold the series x back.

But the truth of the matter is I know a lot of people will buy the Ps5 even with a weaker overall system that would be a full £200 more expensive. That’s just how it works. Same way people will play twice as much for an iPhone that does less than an android. People want the label because they want the experience associated with the label. And no amount of price lead will change these people’s minds, they will buy a PS5 over and Xbox even if they were given away at McDonald’s.

I do see the Xbox being the cheaper version. Both the Series S will be cheap, but also the Series X will be cheaper than the PS5. A lot of people report on how the Xbox BOM is higher some how, but... really think about that reporting for a second, and maybe you will get your answer.

The most likely price situation they will all be in will be (highest to lowest): PS5 > XSX > PS5D > SXS. The true wildcard really is the Lockheart (Series S) as everybody is divided on if it will hurt sales or bump them. Either way, it won’t hold next gen back, you muppets.

Hope you're doing great, mate. Read:




 
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Gavin Stevens

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Of course it will fail if using too much memory. Think about that statement from a logical point of view. First of all, the series X and PS5 will also have fail safes in so that memory consumption cannot go over a certain level, due to games not being the only thing the memory can use. It would create massive system instability of that was the case. And secondly, of course, it has a rumoured lower memory because it is aiming for 1080p rather than 4k, which has a much lower memory footprint right out the box (plus other additional features will be tweaked per title). So yes, if you were to run a game that hit memory limits, the amount of hitching would be insane and the system would fall apart, from a consumption level. All next gen consoles will act this way.

The actual specification of the lockhart system is a next gen device. It is the same SSD (size may vary), same cpu (threads/cores/speed) and same RDNA 2 GPU feature set (clocked lower due to reduced overhead costs of 1080p vs 4k). It will offer the exact same experiences as PS5 and series x, just as a reduced fidelity, and is light years ahead of the One S/1X.

The only real question mark is with regard to things like RT capability. It’s very well done on the series X, but no idea if the Lockhart will even support it, or will be but reduced and lowered in quality like PS5. More likely they will have it just toned down a lot. At 1080p, the box is a serious contender for a LOT of people looking for a next gen entry console who don’t have a 4k set and want to save money. It will play all the same next gen game exclusives. It’s going to be a big thing for the masses IMO. I won’t buy one, I want the top end, but I may do later on for the bedroom to replace the 1X there.
 
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Tqaulity

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When you think about it, it's telling that Microsoft even needs to create a label called "Optimized for Xbox Series X". That appears to just mean "developed for Xbox Series X". We never saw labels for new PS2 or PS3 games, even though both systems had near full backwards compatibility at launch. It was clear by the box art and console spec on the box that you were getting the next gen version (even for Cross Gen Titles). But now, since all titles are being made across all Xbox platforms, they replaced the traditional "Xbox Series X" with "Optimized for Series X". That description is a bit misleading since nearly every game they listed so far on the website was designed for the current gen console first and foremost.

So what does optimized mean? By this definition, it's simply running the game at 4K/60fps potentially with Ray Tracing and reduced loading time, which could be done for near the entire Xbox One catalog. But what happened to a game like the OG Gears of War launching on X360 or even something like Elder Scrolls: Oblivion on X360 or Ryse on the Xbox One? Games actually designed to run on the new system and take advantage of it's features from a design perspective. Wouldn't that be the most common meaning of "optimized" for the next gen hardware?

This may factor into the PS5 value questions as well? Between the presence of Lockhart and the policy of supporting Xbox One with all new releases (at least for the first 2 years or so), it is very possible that we may not see the true capabilities of the Series X anytime soon. Would the fact that PS5 will feature new gen games not possible on old gen add to it's value proposition in your opinion?
 

Andodalf

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When you think about it, it's telling that Microsoft even needs to create a label called "Optimized for Xbox Series X". That appears to just mean "developed for Xbox Series X". We never saw labels for new PS2 or PS3 games, even though both systems had near full backwards compatibility at launch. It was clear by the box art and console spec on the box that you were getting the next gen version (even for Cross Gen Titles). But now, since all titles are being made across all Xbox platforms, they replaced the traditional "Xbox Series X" with "Optimized for Series X". That description is a bit misleading since nearly every game they listed so far on the website was designed for the current gen console first and foremost.

So what does optimized mean? By this definition, it's simply running the game at 4K/60fps potentially with Ray Tracing and reduced loading time, which could be done for near the entire Xbox One catalog. But what happened to a game like the OG Gears of War launching on X360 or even something like Elder Scrolls: Oblivion on X360 or Ryse on the Xbox One? Games actually designed to run on the new system and take advantage of it's features from a design perspective. Wouldn't that be the most common meaning of "optimized" for the next gen hardware?

This may factor into the PS5 value questions as well? Between the presence of Lockhart and the policy of supporting Xbox One with all new releases (at least for the first 2 years or so), it is very possible that we may not see the true capabilities of the Series X anytime soon. Would the fact that PS5 will feature new gen games not possible on old gen add to it's value proposition in your opinion?

The games are the games. If they’re great I’ll play them regardless of where they are. I will also play them where they play better if it’s on multiple platforms I own. It doesn’t inherently make PS5 a better value, unless those exclusive games are bangers, which honestly they probably would be regardless of tech.
 

billyxci

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PS5 absolutely needs to be cheaper than XSX.

the only good thing it has going for it is the speed of the SSD which won't matter in majority of games. otherwise it is weaker than XSX and the price should reflect that.
 
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JimiNutz

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I think it'd be smart for MS to try and launch at around $449 (assuming that PS5 is $499).
Maybe pack in Halo Infinite as well (or a few months free Game Pass and Live instead).

That shouldn't cost them too much $ and at the very least should allow them to capture back some of the X360 fans that they lost to Sony this gen due to the shitty XB1 launch.

I think Sony can afford to come in at $499 and still have a lot of success. They've built a devoted fanbase over 4 previous generations. They've never lost a gen to MS previously and they have a lot of gamers already committed to their system/store and exclusive IP. I can't imagine they will come second this upcoming gen unless something goes horrifically wrong (like a huge design fault in the PS5 or a ridiculous price at launch). I don't think PS5 coming in at $50 more than XSX will be a problem for Sony.

MS need to try and tighten the over 2:1 lead that Sony have currently. Take back the US and have a lot of success in the UK. If MS come in at same price and same/similar date to PS5 I think they'll perform about as well/poorly as they did this gen (especially worldwide).
 

WelshBluebird

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Despite all the rumours about price, given its microsoft thinking they are having to make the significantly cheaper model (rather than just dropping the disc drive like Sony are doing), I think it is a fair bet that the PS5 will be cheaper than the series X. Otherwise what's the point of lockhart if they are already cheaper than the competition?
 

lastmessiah

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Despite all the rumours about price, given its microsoft thinking they are having to make the significantly cheaper model (rather than just dropping the disc drive like Sony are doing), I think it is a fair bet that the PS5 will be cheaper than the series X. Otherwise what's the point of lockhart if they are already cheaper than the competition?

I'm sorry, but you guys who think MS is having nightmares and cold sweats about the "competition" are delusional. MS is playing a different game than Sony and is in a whole 'nother league financially. If the Series X is cheaper than the PS5, that is just a bonus for them. They will still want to put out a cheaper model of the Xbox because the objective is to sell their services.

You can rag on about Sony's global sales but sales does not equal profit. Sony financials are poor and the way the industry is moving does not bode well for them. This is reality. Microsoft does not worry about Sony.
 

Lordani66

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People really think they didnt announce the price because its going to be like 600 dollars? Lol nope. Both wait for the other consoles price release to undercut it. Ps5 price of build is 450, no need to sell it for more than 500.
 

sircaw

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PS5 absolutely needs to be cheaper than XSX.

the only good thing it has going for it is the speed of the SSD which won't matter in majority of games. otherwise it is weaker than XSX and the price should reflect that.

I hope you have been listening to experts talking about tflops is not a great metric to judge systems by anymore. There is tones of custom silicon in the ps5, to just dismiss like you have done seems very short sighted.
 
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Lordani66

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I'm sorry, but you guys who think MS is having nightmares and cold sweats about the "competition" are delusional. MS is playing a different game than Sony and is in a whole 'nother league financially. If the Series X is cheaper than the PS5, that is just a bonus for them. They will still want to put out a cheaper model of the Xbox because the objective is to sell their services.

You can rag on about Sony's global sales but sales does not equal profit. Sony financials are poor and the way the industry is moving does not bode well for them. This is reality. Microsoft does not worry about Sony.
Jesus some people really live in fairytale land.
 

sircaw

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I'm sorry, but you guys who think MS is having nightmares and cold sweats about the "competition" are delusional. MS is playing a different game than Sony and is in a whole 'nother league financially. If the Series X is cheaper than the PS5, that is just a bonus for them. They will still want to put out a cheaper model of the Xbox because the objective is to sell their services.

You can rag on about Sony's global sales but sales does not equal profit. Sony financials are poor and the way the industry is moving does not bode well for them. This is reality. Microsoft does not worry about Sony.

I really hope you are the last Messiah cos your prophecy's suck.
If your going to troll at least put some effort into it.
 
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lastmessiah

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I really hope you are the last Messiah cos your prophecy's suck.
If your going to troll at least put some effort into it.

It isn't a troll dude. This is the cold hard truth. I've enjoyed plenty of Sony games in the past and I've never even owned an Xbox. But what is the point of denying reality? The Playstation brand is not infallible and their "success" today is nowhere near where Sony wishes it was. I can guarantee you that.
 

Tulipanzo

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Given a BoM of $450, it's fairly easy to theorize.
a) PS5DE: 399, PS5: 499;
A minor loss on hw on PS5DE, offset by no hw loss on PS5
b) PS5DE: 399, PS5: 450;
A minor loss on hw for both, imo if XSX comes in at 499

These are more than they lost last gen, but still justifiable losses (+ shipping ofc).
It'd be great if we had a more certain BoM for XSX, but MS's strategy doesn't seem to include taking losses on hw.
 
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