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Sony Is Struggling With PlayStation 5 Price Due to Costly Parts

thebigmanjosh

Gold Member
PS4 cost $380 to make and sold for a slight loss at $399 for a few months before turning profit.

PS5 will cost $460 to make and could sell at $499 while possibly making a profit right from the beginning.

The doom/gloom and mental gymnastics in this thread are unreal. How does a higher BOM translate to a weaker console? Why are people shocked at a $450 BOM when every indication was that these consoles would be comparatively more powerful that last gen and retail for $499?

Also, if Sony are having cost issues, so are MS.

EDIT: Last thought: MS are going to have a hell of a value proposition at $499 (even more so at $399-$450) if they include a few months of Game Pass and Halo right at launch. Sony probably knows this and are going to do everything they can to either undercut on price or add value.
 
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5700XT is also a dedicated GPU card sold for high profit margins to PC gamers. And the price also includes the GDDR6, motherboard, PSU and cooling.

Consoles are getting their tech at a very different pricing thanks to bulk order discounting and long-term contract deals. Plus they are using customized APUs fusing the CPU and GPU onto the same die, which helps with costs (at the expense of using "mobile" CPU chips to keep TDP managed well).

The two aren't that comparable imo.

What do you think a realistic price range is for next gen consoles then? Realistic high vs realistic low, in your eyes?
 

Gavon West

Spread's Cheeks for Intrusive Ads
I think i might go back to xbox till ps5 pro comes i just don't have a good feeling, the smell of shit is in the air.
Yep! Its basically as some of said; Sony is waiting on Microsoft - which has been the deal all along. There's a reason why they've been so quiet and missed two major pressers with little to no information on the PS5 currently.

I'm gonna predict (and I could very well be wrong. I admit that) Sony might just cancel releasing the PS5 this year and hold out till next. Also, it looks like Sony will have some cross gen games of their own for the first year or so. We'll see.

But yeah, something is SUPER off about Sony's whole game plan right now.
 
People thinking that only Sony is affected by shortage of ram and flash memory are hilariously funny.
This has effect on everyone using those parts, even Nintendo might be affected as this will likely delay Switch price drop
 

sdrawkcab

Banned
Consoles are not the best and greatest, though. Not even close. They're not designed to be bleeding edge high end tech, they are first and foremost affordable and convenient gaming devices for a large amount of people. And those people will pay what they pay. Sony tried to convince people that $600 was a good price for their PS3, nobody bought it, they had to cut costs and release a cheaper system six months later. And no, "it costs a lot to make, please pay more" is not going to convince a single person outside of gaming forums to buy it. These are luxury devices, nobody needs to own a PS5, and the price has to reflect that reality.
That's usually the case, but the coming gen is clearly different. SSDs on their own are pretty expensive, and this is using NVMe drives, if I'm not mistaken. Sure, they'll strike up deals and be purchasing these things in bulk, but still. The cost of R&D and development (which people always seem to forget about), the motherboard (custom), the RAM (GDDR6, if I'm not mistaken?), the new Navi processors... both companies will struggle to hit a $399 price-point. And that tech isn't bleeding edge, but it is a huge step up from any gen before, and damn near the best you can get on any console, in history, and can easily rival a $700-$800 PC in performance. The cheapest resources of these consoles are the plastic shell and Bluray drive.

I really don't see it, sorry. I can understand Sony's frustration, because there's this desire to please gamers, and of course, sell units. But let's be realistic here, gamers (especially the very vocal ones) haven't proven to be the voice of reason around here. Gaf is a great example of that. I get that every man has to focus on his own pockets, and who doesn't want to save a couple hundred dollars? We all do. But we can't expect those kinds of specs and still expect cheap prices, and still expect that these companies will make decent profits. Those 3 things just won't work in harmony with each other. Somewhere a compromise has to be made. And I honestly think, gamers (we) are the ones who need to make the sacrifice. These companies run businesses, and it's becoming apparent that the physical console sale ain't what it used to be. It just isn't very sustainable.

The sad part is, Microsoft is better off financially to take bigger losses from console sales. Sony; not so much. I love competition, and I know the more profitable both these companies are in gaming, the healthier the gaming ecosystem will be. Sure profits aren't everything, and companies can get greedy, but if Sony (or Microsoft) has to cut back on the tech to hit the $400 price-point, I'd be disappointed to say the least. I'd much rather they put their best into their offerings (within reason, because they can easily build a $700 console), and have the consumer cover the costs to make a decent profit. I honestly wouldn't mind.

I've already started saving for next gen. I can't tell people what to do with their money, but I think it's a good idea to start saving from now, and give yourself a +$100 window. If you save $500, and your console of choice turns out to be $400, great; you'd have saved some money and can use that extra for other things. I really wouldn't hurt.
 

Gavon West

Spread's Cheeks for Intrusive Ads
Sorry mate, they got LOTS of work to do to “kill” Sony. Having the upper hand in power isn’t everything. Yes the X1X is magnificent and the PS4 Pro doesn’t come close to it but still, thats not the big factor here.
You don't believe that, right??

This is the start of a new gen. First impressions are everything! Microsoft comes in more powerful with Series X, bangers like Infinite, Forza 8, Playgrounds new IP and Initiative IP all on Gamepass day n date bundled with Xcloud with best experience being on console. Is that the "ALOT" you're talking about here?

Cause if so, it is alot.
 

LordOfChaos

Member
Most of the components for the console have been locked down, the people said, including the cooling system, which is unusually expensive at a few dollars per unit. Typically, companies would spend less than a dollar, but Sony opted to lavish more on making sure heat dissipation from the powerful chips housed inside the console isn’t an issue.


I was hoping for some more exotic cooling for the entire hype cycle of the 9th gen. Looks like we're getting it, from both.

Dollars a unit is a pretty good return for that last 10-15% performance imo.
 

sublimit

Banned
Yep! Its basically as some of said; Sony is waiting on Microsoft - which has been the deal all along. There's a reason why they've been so quiet and missed two major pressers with little to no information on the PS5 currently.

I'm gonna predict (and I could very well be wrong. I admit that) Sony might just cancel releasing the PS5 this year and hold out till next. Also, it looks like Sony will have some cross gen games of their own for the first year or so. We'll see.

But yeah, something is SUPER off about Sony's whole game plan right now.
Why exactly people like you are blaming only Sony for waiting on MS and not the other way around?

What more has MS officially showed or said that makes Sony to you being the ONLY one that is waiting?

Is it because MS has shown a box? Is the box design so crucial to you and others to spread stupidity like "Sony is afraid" or "Sony is waiting MS"?

I'm so tired with all this fanboy BS.
 

FranXico

Member
Why exactly people like you are blaming only Sony for waiting on MS and not the other way around?

What more has MS officially showed or said that makes Sony to you being the ONLY one that is waiting?

Is it because MS has shown a box? Is the box design so crucial to you and others to spread stupidity like "Sony is afraid" or "Sony is waiting MS"?

I'm so tired with all this fanboy BS.
Boxes, logos... both are just buying time.
 
What do you think a realistic price range is for next gen consoles then? Realistic high vs realistic low, in your eyes?

Never minding Lockhart?

Hmm... $399 on the realistic low end, $499 on the realistic high end. If PS5 BOM really is closer to $450 and they come in weaker, they could launch at $499 and still sell out (I mean the XBO did the same sticking to $499 even after all the PR disasters that happened after that May/June and sold out at launch), but if they notice sales slowing down too much they may price it lower to $450 a few months later, probably with a pack-in bundle, and see how that goes.

I honestly don't picture XSX being anything other than $499. Over $500 is risky, and they'd take too much a loss going $399 or maybe even $450. I mean, the whole point of Lockhart is to be the affordable option, but I don't think that means XSX is gonna be $600, either.

Sony, honestly I think they'll launch at $499 after thinking on it some more, because they know they'll sell out of the launch shipments no matter what. And they will likely be in more markets at launch than MS, which gives them room for $499 especially in those territories. However, depending on whatever momentum MS gains with XSX (and Lockhart, if it comes out this year), if Sony sees it encroaching on them, they may start doing bundles and temp-drop to $450 like during a Spring sale. I wouldn't picture them dropping $100 in one year tho no matter what, not as the new permanent price anyhow.

But any price drops with PS5 in that kind of situation, I only see for the NA and some European markets, which are probably the main areas they would see any serious encroaching by MS in that early into next-gen. It would take more time for Xbox to start having that type of effect in foreign territories PS has been dominant in, but people need to keep an eye on Xcloud for those places. If that takes off in, say, Japan, SK or China, Sony's going to notice and that does actually affect PS5's sales in those locations. That's likely when you would see Sony start to take countermeasures in pricing in those territories (and probably start pushing PS Now a lot more heavily, hopefully by then they have the capacity to do so).
 

SleepDoctor

Banned
You don't believe that, right??

This is the start of a new gen. First impressions are everything! Microsoft comes in more powerful with Series X, bangers like Infinite, Forza 8, Playgrounds new IP and Initiative IP all on Gamepass day n date bundled with Xcloud with best experience being on console. Is that the "ALOT" you're talking about here?

Cause if so, it is alot.


Of course you dont lol.

Too bad all those games you named are also on pc and gamepass. Where's the incentive to buy an xbox over a pc or even a ps5?

Why should people trust Microsoft just because its a new gen?

Brings me right back to fanboys have no logic. They will always spin shit to fit their narrative.
 

sublimit

Banned
Of course you dont lol.

Too bad all those games you named are also on pc and gamepass. Where's the incentive to buy an xbox over a pc or even a ps5?

Why should people trust Microsoft just because its a new gen?

Brings me right back to fanboys have no logic. They will always spin shit to fit their narrative.
I just checked his post history. Oh boy i should have done that before i bothered to reply to him.
 

diffusionx

Gold Member
That's usually the case, but the coming gen is clearly different. SSDs on their own are pretty expensive, and this is using NVMe drives, if I'm not mistaken. Sure, they'll strike up deals and be purchasing these things in bulk, but still. The cost of R&D and development (which people always seem to forget about), the motherboard (custom), the RAM (GDDR6, if I'm not mistaken?), the new Navi processors... both companies will struggle to hit a $399 price-point. And that tech isn't bleeding edge, but it is a huge step up from any gen before, and damn near the best you can get on any console, in history, and can easily rival a $700-$800 PC in performance. The cheapest resources of these consoles are the plastic shell and Bluray drive.

I really don't see it, sorry. I can understand Sony's frustration, because there's this desire to please gamers, and of course, sell units. But let's be realistic here, gamers (especially the very vocal ones) haven't proven to be the voice of reason around here. Gaf is a great example of that. I get that every man has to focus on his own pockets, and who doesn't want to save a couple hundred dollars? We all do. But we can't expect those kinds of specs and still expect cheap prices, and still expect that these companies will make decent profits. Those 3 things just won't work in harmony with each other. Somewhere a compromise has to be made. And I honestly think, gamers (we) are the ones who need to make the sacrifice. These companies run businesses, and it's becoming apparent that the physical console sale ain't what it used to be. It just isn't very sustainable.

The sad part is, Microsoft is better off financially to take bigger losses from console sales. Sony; not so much. I love competition, and I know the more profitable both these companies are in gaming, the healthier the gaming ecosystem will be. Sure profits aren't everything, and companies can get greedy, but if Sony (or Microsoft) has to cut back on the tech to hit the $400 price-point, I'd be disappointed to say the least. I'd much rather they put their best into their offerings (within reason, because they can easily build a $700 console), and have the consumer cover the costs to make a decent profit. I honestly wouldn't mind.

I've already started saving for next gen. I can't tell people what to do with their money, but I think it's a good idea to start saving from now, and give yourself a +$100 window. If you save $500, and your console of choice turns out to be $400, great; you'd have saved some money and can use that extra for other things. I really wouldn't hurt.

This gen is not different. The hardware doesn't change what people are willing to pay. If it did, everyone would have high-end PCs. Let me put it this way. Nobody is going to spend an extra $100 because it has GDDR6. Nobody. The fact that it has a SSD doesn’t matter if it is priced too high. If Sony built a console too expensive for the market, that is Sony’s problem, not the market’s (a lesson Sony learned on PS3). People will pay what they pay. The tech doesn’t matter. For a $500 console, Sony has to do something nobody has ever done, convince people to spend $500 on a console. And you don’t do that by touting specs. Maybe this is the gen people buy $500 consoles, but "muh SSD" is not going to be why. It’s just not something that drives sales. Anyone who wants to sacrifice for more power can build a PC, and lots of people do.
 
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S0ULZB0URNE

Member
Is this there greatest power move ?
Sony is in trouble right now. They will follow Microsoft's pricing model for Xbox Series X, because lets face it, they dont hold a candle to Microsoft's technical prowess.
Microsoft knows what it is doing regarding Xbox Series X and has many more surprises stored for us.
Many more surprises stored for us?

LOL who wrote this
 

Vawn

Banned
You don't believe that, right??

This is the start of a new gen. First impressions are everything! Microsoft comes in more powerful with Series X, bangers like Infinite, Forza 8, Playgrounds new IP and Initiative IP all on Gamepass day n date bundled with Xcloud with best experience being on console. Is that the "ALOT" you're talking about here?

Cause if so, it is alot.

Xbox hasn't had many "bangers" in a long time. Why are we supposed to believe this time will be different?

Just look at PS4's 2020 vs Xbox One's. MS is talking. Sony is releasing games. This has been the case most of the last 20 years. It has only gotten worse since Phil Spencer took over.

Show me the better games like you had for maybe the first two or three years of Xbox 360 and I'll be back. Until then I have no confidence anything has changed.
 
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S0ULZB0URNE

Member
They'll be a bunch of hypocrites of course. Remember how it was absolutely anti-consumer and evil to charge for online with Xbox Live?

That wasn't s problem anymore when Sony forced then to pay for online when PS4 launched.
No it was a problem but we paid and got the best online service in return.
 

Gavon West

Spread's Cheeks for Intrusive Ads
Lay off the personal insults and discuss in an adult manner.
Of course you dont lol.

Too bad all those games you named are also on pc and gamepass. Where's the incentive to buy an xbox over a pc or even a ps5?

Why should people trust Microsoft just because its a new gen?

Brings me right back to fanboys have no logic. They will always spin shit to fit their narrative.
You sound straight stupid and in yo feelings. Not gonna bother responding to your dumb ass post. What fucking spin, genius? Everything I said was true.
 

Vawn

Banned
Not really sure it's the best when PS Plus puts a cap on cloud saves.

I don't know anyone personally who ran out of cloud saves. But I do see Xbox Live going down quite a bit more often than PSN despite less than half the number of users.

Regardless, it is lame to pay for online play from all three. Microsoft gets more blame simply because they normalized it. Nintendo should get more too just because their online service is below what people should expect even for a free service.
 
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Clear

CliffyB's Cock Holster
Frankly Sony could very likely hold off for 6 months and still be way ahead.

The reality is that Series X is going to be an expensive box that at launch that is offering the exact same sort of value proposition as One X did, and that failed to make a dent in Playstation.

Honestly, long-term its unlikely to matter anyway. Whoever starts out with the more expensive box is going to have the most expensive box all generation long. Because when the hardware is so similar, and mostly sourced from the same external partners there's no way to gain significant advantage over the competition.

I'd also add that people should bear in mind that this about production volume as much as material cost; meaning its about overall revenue because you can only sell what you can produce and make p/l based on that. These things interact as well due to higher unit cost likely slowing uptake, so its naturally self regulating unless you need to maximize short term income, which Sony as market leader have less need for than MS do.
 

Gavon West

Spread's Cheeks for Intrusive Ads
I've been reading here long enough to know who's comments aren't worth even reading lol.
I've never hid what platform I prefer, my guy. But everything I said is extremely likely and you and your goon squad know it. The real uncertainty is Sony and Sony fanboys ain't digging that too much. So when you kats like you hear the truth, you call it spin or PR. Especially if its positive Xbox news. You guys are a fucking joke and too emotional to even apply to be an arm chair dev, marketing director, or analyst. You can't see the forest for the trees. When the shit is staring right back at you.
 

Hobbygaming

has been asked to post in 'Grounded' mode.
Yep! Its basically as some of said; Sony is waiting on Microsoft - which has been the deal all along. There's a reason why they've been so quiet and missed two major pressers with little to no information on the PS5 currently.

I'm gonna predict (and I could very well be wrong. I admit that) Sony might just cancel releasing the PS5 this year and hold out till next. Also, it looks like Sony will have some cross gen games of their own for the first year or so. We'll see.

But yeah, something is SUPER off about Sony's whole game plan right now.
There's no way they delay the PS5 release unless it was due to some disaster like the coronavirus affecting manufacturing but it sounds like they're on track
 
To put things in perspective, I think the PS3 cost Sony around $805 to $840 to manufacture at launch. That was a whopping $200 plus loss per unit.
 

Gavon West

Spread's Cheeks for Intrusive Ads
There's no way they delay the PS5 release unless it was due to some disaster like the coronavirus affecting manufacturing but it sounds like they're on track
As I said, they very well could be. But none of this shit sounds like Sony is very confident in the PS5 right now. And they are very much waiting on Microsoft to announce their price. And they are very much looking for that "moment" from Microsoft to capitalize on. Thing is, Series X is pretty much a $500 console, regardless of what Sony does. I don't think Microsoft cares what Sony does at this point.
 

Hobbygaming

has been asked to post in 'Grounded' mode.
I've never hid what platform I prefer, my guy. But everything I said is extremely likely and you and your goon squad know it. The real uncertainty is Sony and Sony fanboys ain't digging that too much. So when you kats like you hear the truth, you call it spin or PR. Especially if its positive Xbox news. You guys are a fucking joke and too emotional to even apply to be an arm chair dev, marketing director, or analyst. You can't see the forest for the trees. When the shit is staring right back at you.
When the PS5 reveal does happen, all of these concerns will be put to rest. I think they're preparing for a big show
 

Gavon West

Spread's Cheeks for Intrusive Ads
When the PS5 reveal does happen, all of these concerns will be put to rest. I think they're preparing for a big show
So do I! A show where they control the message. There's a reason for that. And it has nothing to do with E3 is dying or other rhetoric we've heard. Sony is distancing itself for a specific reason. We'll know that reason soon enough...
 
Sony spending an unusual amount on the PS5 cooling system tells me the PS5 will also be very powerful :) and the "costly parts" also hints to PS5 having good tech
well if the article is to be believed, scarce components “pushed” it to $450, meaning it was less than that this whole time. $400-450 without taking a loss gets you a 9.2 tf machine
 

SleepDoctor

Banned
You sound straight stupid and in yo feelings. Not gonna bother responding to your dumb ass post. What fucking spin, genius? Everything I said was true.


I must've broke your little green heart, throwing out personal attacks like that lmao. Put me on ignore bud, its the best thing you can do.
 

SleepDoctor

Banned
I've never hid what platform I prefer, my guy. But everything I said is extremely likely and you and your goon squad know it. The real uncertainty is Sony and Sony fanboys ain't digging that too much. So when you kats like you hear the truth, you call it spin or PR. Especially if its positive Xbox news. You guys are a fucking joke and too emotional to even apply to be an arm chair dev, marketing director, or analyst. You can't see the forest for the trees. When the shit is staring right back at you.


My short reply is met with not one but two emotional replies with personal attacks from you lol. "Goon squad" ???? You sound like Malibu's most wanted. Give it a rest 🤣🤣🤣🤣
 

S0ULZB0URNE

Member
I've never hid what platform I prefer, my guy. But everything I said is extremely likely and you and your goon squad know it. The real uncertainty is Sony and Sony fanboys ain't digging that too much. So when you kats like you hear the truth, you call it spin or PR. Especially if its positive Xbox news. You guys are a fucking joke and too emotional to even apply to be an arm chair dev, marketing director, or analyst. You can't see the forest for the trees. When the shit is staring right back at you.
Positive Xbox news?
Since when?
The only spinning I ever see if from the Xbox camp.

I play em all but find xboys and PC fanboys to be the worse.
 
I won't be able to afford a PS5 at launch, but a price of $450-500 stills seems reasonable to me. It's cheaper than buying a $600-800 phone every 2-3 years to do the same things with it. With a new console you're guaranteed to use it for 5 years at least.
 
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