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Is a new XSX coming out and why the PS5 DE doesn't matter anymore

I think they do the redesigns to save money. The 6nm version already has leftover space in the current unit after they shrunk the heat sink. If they've moved to 5nm or something they could likely save even more space. A more compact console costs them less to to store and ship and so on.

I just don't think Jim Ryan is looking to cut prices anytime soon. I don't think you sell 25-30 million units at full price and decide you're going to cut prices and get into a price war with Microsoft when you don't have to. They never cut the price of the PS4 Pro even when the PS5 digital came out for the same price. They just discontinued the PS4 Pro. They could have priced the PS4 Pro at the same price as the XSS at 300, but they kept the original PS4 at 300, meaning they don't see the XSS as real competition. Similarly, I think they're willing to let Microsoft drop the XSX to 400 and stay at 500.

The difference in dropping the price 100 dollars and they sell between 20-30 million units between September 2023 and September 2024 is 2-3 billion dollars.

If I'm Sony, I rather keep the price at 500 dollars, use that extra profit to buy a major publisher and sell even more units based of the increased production of software studios. Two more years at 500 dollars and maintained sales goes a long way towards paying for companies like Bungie or FromSoftware/Kadokawa.

Given inflation, I don't think dropping the price makes sense and it's not something Nintendo would do. Everything we've seen from Sony suggests that they're trying to operate more like Nintendo these days.
 

Fafalada

Fafracer forever
Would that have really required a redesign? They could have just shuttered the PS5 SE and put together a firmware update to accept an external disc drive.
The Firmware already recognizes external optical drives.
If I had to guess, the point here is monetizing the add-on instead of allowing it to be open standard to arbitrary USB-C drives, and redesign is part of the marketing push to help sell such proprietary add-on.
And with add-on being sold for 99 (or 129, because why not), that would balance out the 399 MSRP.
 
You aren't looking at the big picture.

They can bundle software with PS5 because that software is more times than not... first-party software. And at the time, there's no reason to give it for free, because doing so is as good as actually doing a price drop. Now, that bunded software would be considered as a deal, and not as a price drop. And at the end of the day, it feeds into what I am saying... they take a hit on selling you the hardware to get you into their ecosystem and spending more money.

And they don't care if the peripheral doesn't sell a lot. They don't even want it to. Why? Because Sony makes significantly more money from people buying software digitally than they do from you buying a disc.d

The new PS5 SKU, is just that, a new SKU. But more importantly, a new CHEAPER SkU. The whole point of the redesigns is always to save money. If you look at the current PS5 now, from what was released in 2020, an argument can be made that they could even already make it smaller. The new SKU comes as a digital SKU, and you just add in the disk drive if you want to. And the reason it's not BC with the older digital SKU probably would speak more to the way it's connected than anything else. Its probably going to be more like a disc drive cartridge if that makes any sense.

I think it's you that isn't looking at the big picture.

First, their bundles aren't always first-party, though they tend to be. They just did bundles for Call of Duty and Final Fantasy.

Sony is less interested in taking a hit on hardware now. Especially with them having no issues selling hardware. Dropping to 400 dollars doesn't drastically increase their demand, certainly not to the point where they have supply to keep up with it.

Every Sony report mentions that they are taking less of a hit on hardware as it relates to the standard edition specifically.

Thanks for explaining to me what I already said man. I'm the one that said they don't want the disc attachment to sell and that I think they'll charge upwards of 100 dollars for it. Hell it might be even more than that.

There is no reason why it couldn't work with the old sku. It's going to have to connect via USB. Could the slim model have an extra usb port? sure, but there is no reason based on disc read speeds and poower that it couldn't work with usb C.
 

Fredrik

Member
If the unit is slim and more than 400 dollars you close your account.

If it is not slim and 400 dollars I close my account.

If it is the same form factor but more than 400 dollars or slim and more than 400 dollars it is a push and no one closes their account, but you should apologize for being a jackass.
How about you both stay and stop doing bets and talk like normal people instead?

Anyway I work in electronics manufacturing, the component costs are going up in every area, even packaging. This is not Sony but I doubt they’re immune to what’s happening in the whole industry. I wouldn’t expect price drops unless something substantial is removed.
 
The Firmware already recognizes external optical drives.
If I had to guess, the point here is monetizing the add-on instead of allowing it to be open standard to arbitrary USB-C drives, and redesign is part of the marketing push to help sell such proprietary add-on.
And with add-on being sold for 99 (or 129, because why not), that would balance out the 399 MSRP.

The PS5 digital actively blocks the connection of the drive. Youtubers have tried connecting the oem disc drive to a digital and while it gets power it doesn't read the disc. You can't covert a digital to a standard.

I just think we're on separate pages on what Sony's motives are and ultimately we'll see who is right, but I'm pretty confident that Jim Ryan wants to generate more operating income off of the sale of the hardware.
 
How about you both stay and stop doing bets and talk like normal people instead?

Anyway I work in electronics manufacturing, the component costs are going up in every area, even packaging. This is not Sony but I doubt they’re immune to what’s happening in the whole industry. I wouldn’t expect price drops unless something substantial is removed.

Normal people aren't rude to complete strangers for no reason... I suggested a bet because he said what I think is a pretty sound theory, speculation aside was stupid. I'm willing to challenge him on that.
 

KungFucius

King Snowflake
You forgot retailers aren't interested much in selling digital-only devices that completely cut them out of the equation.
I think you forgot that retailers still take a cut of sales of these $3-500 boxes and will sell them as long as they move quickly enough to justify the inventory/shelf space. So what if they no longer have a large area devoted to games that often get reduced in price to make room for the next ones.
 

Fafalada

Fafracer forever
The PS5 digital actively blocks the connection of the drive.
Of course it does right now - I don't think anyone argued otherwise. My point was that current PS5s already recognize external drives and even load-up information from discs on some, ie. this is likely something they've been thinking about on the software side since original launch / or even before.

I just think we're on separate pages on what Sony's motives are and ultimately we'll see who is right, but I'm pretty confident that Jim Ryan wants to generate more operating income off of the sale of the hardware.
The obvious reason to consolidate to a single SKU is to improve profit margins to begin with. And keeping 399$ entry MSRP would not lead to 399$ ASRP in this scenario either - as lots of people would continue buying the disc add-on, bundled or otherwise.
So it's not necessarily a binary choice scenario, keeping 399 could still lead to improved operating income (especially on the back of potential increase to hw-volumes).
 
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Fredrik

Member
Normal people aren't rude to complete strangers for no reason... I suggested a bet because he said what I think is a pretty sound theory, speculation aside was stupid. I'm willing to challenge him on that.
Bet on something else instead so you can both keep talking about games. A Playstation Store gift card?
 

Astray

Gold Member
I think you forgot that retailers still take a cut of sales of these $3-500 boxes and will sell them as long as they move quickly enough to justify the inventory/shelf space. So what if they no longer have a large area devoted to games that often get reduced in price to make room for the next ones.
Think of it this way, I'm a retailer who can either get a distribution cut out of a digital console that will at best bring me some store card or digital code sales, maybe some peripherals. or I can take a cut out of a regular console that has a higher chance of getting me all the above plus physical games (which take up a ton of space in my store), which one will I stock more of?

If you are a retailer, the choice is obvious and will guide a bigger split in favor of disc-enabled consoles.
 

StereoVsn

Member
I can see new Slim PS5 being $399 and the drive being another $100. That said, I can also see the Slim being $449. Don't think Sony would sell the base model for $499 though.

If they price the Slim at $399-$449 then Pro at $599-649 would have enough of a separation. Pro could also use the same attached Blu-ray to simplify production.

I don't see Sony pricing the revised model lower since they really don't have to and they want the nice margins.
 
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DaGwaphics

Member
I do see a slim model but at lower price? LoL Come back to earth people.

I don't think it will be a lower price than the current DE model. However, it would be a bold move to up the price of the DE to $500 as is being suggested here.

My assumption is that they prefer users buy the DE for all the obvious reasons (no used games, forced to use their store, etc.) but don't want the bad press of eliminating the disk drive. Moving to the DE being the base model with an add-on drive works in both cases. Though they could bump the storage and use that as an excuse to increase the DE pricing to $500, I doubt it would go over that well though.
 
The digital only ps5 is to cut production costs, so they only need to make one sku, most ps5 consoles will still be bundled with a disk drive. At 499. They are not going to increase price again lol, DE edition is still very important to Sony, if anything, expect a price cut on Black Friday for de edition.
 

EverydayBeast

thinks Halo Infinite is a new graphical benchmark
Honestly physical games sort of feel beneath me at this point.

PS5-Digital-Box-24-09-2020.jpg


SONY's gameplan out the gate with the digital edition was give new gamers a chance to play their catalog of games, leaving behind loud noisy disk drives, a faster wifi, improved controller, and cheaper price tag.
 
Think of it this way, I'm a retailer who can either get a distribution cut out of a digital console that will at best bring me some store card or digital code sales, maybe some peripherals. or I can take a cut out of a regular console that has a higher chance of getting me all the above plus physical games (which take up a ton of space in my store), which one will I stock more of?

If you are a retailer, the choice is obvious and will guide a bigger split in favor of disc-enabled consoles.
You're assuming that it is the retailer's choice in this scenario.
 

LordCBH

Member
0% chance the slim PS5 is priced at $500. 0.
It’ll be $399 at most and they may have a bundle that includes the rumored add on disc drive.
 

Mr.Phoenix

Member
I think it's you that isn't looking at the big picture.
Guess we will see, but I will address what you have said regarding this.
First, their bundles aren't always first-party, though they tend to be. They just did bundles for Call of Duty and Final Fantasy.
Again, these bundles are more like deals, than a price drop. Eg. Cosoe cost $499. The bundle cost $549. That will be looked at as a $20 saving/deal for someone that was going to buy the console and the game anyways.
Sony is less interested in taking a hit on hardware now. Especially with them having no issues selling hardware. Dropping to 400 dollars doesn't drastically increase their demand, certainly not to the point where they have supply to keep up with it.
Its not about interest. It's about market share. So doesn't care if they lose $50 on a unit sod if the overall net spend from that buyer puts them $10 ahead at the end of that transaction. And the sooner they sell more consoles, the sooner they make more money too. If they are having production or supply issues, then they could increase the price, but as long as they are meeting their supply targets, they would always sell at cost or even at a loss if they can.
Thanks for explaining to me what I already said man. I'm the one that said they don't want the disc attachment to sell and that I think they'll charge upwards of 100 dollars for it. Hell it might be even more than that.

There is no reason why it couldn't work with the old sku. It's going to have to connect via USB. Could the slim model have an extra usb port? sure, but there is no reason based on disc read speeds and poower that it couldn't work with usb C.
That we say the same thing, doesn't mean we are arriving at the same conclusions. Yes, I do not believe they want the disc attachment to see, and they have no obligation to make it compatible with the current discless SKU.

Rather than go back and forth on this, how about this...

  • I believe the disc attachment would be some sort of slide-in cartridge-type affair, and use a connector interface which means it's not compatible with any PS5 before the new SKU.
  • I believe the new PS5 will retail for no more than $399. May even be less. and the disc drive will retail for anywhere between $70 - $100.
Now I don't care nor know if they would be selling at a profit, breaking even, or at a loss. I just know that there is no way they are releasing a new, smaller, cheaper-to-make PS5 without a disc drive and selling it for more than a disc-free PS5 costs now currently.
 
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Guess we will see, but I will address what you have said regarding this.

Again, these bundles are more like deals, than a price drop. Eg. Cosoe cost $499. The bundle cost $549. That will be looked at as a $20 saving/deal for someone that was going to buy the console and the game anyways.

Its not about interest. It's about market share. So doesn't care if they lose $50 on a unit sod if the overall net spend from that buyer puts them $10 ahead at the end of that transaction. And the sooner they sell more consoles, the sooner they make more money too. If they are having production or supply issues,then they could increase the price,but as long as they are meeting their supply targets, they would always see at cost or even at a loss if they can.

That we say the same thing, doesn't mean we are arriving at the same conclusions. Yes, I do not believe they want the disc attachment to see, and they have no obligation to make it compatible with the current discless SKU.

Rather than go back and forth on this, how about this...

  • I believe the disc attachment would be some sort of slide-in cartridge-type affair, and use a connector interface which means its not compatible with any PS5 before the new SKU.
  • I believe the new PS5 will retain for no more than $399. May even be less. and the disc drive wi retail for anywhere between $70 - $100.
Now I don't care nor know if they would be selling at profit, breaking even or serving at a loss. I just know that there is no way they are releasing a new, smaller, cheaper-to-make PS5 without a disc drive and selling it for more than a disc-free PS5 costs now currently.

The bundles are 560 not 550. They give you a 10-dollar break by forcing/incentivizing you to buy the game of their choice. These games are generally games that Sony have specific marketing deals with, so ensuring a certain number of titles sell, helps them mitigate the costs of those marketing/exclusive deals and in the case of their own games, pump up the overall sales numbers.

The problem is you're assuming significantly different sales at 400 than at 500, whereas we know the ps5 digital is already at 400. If they wanted to sell the unit at this price, they could have sold more of these, but they've opted not to.

I would be stunned if it has a slide-in cartridge given that we're assuming it's going to have a slim form factor. I'm guessing it will just connect via a usb port, likely the USB A port.

You think the new PS5 and disc drive will retail for less than the current PS5? You really must not know Jim Ryan.

But we'll see, will be an interesting one to look back at in a couple months.
 

Soosa

Banned
Yup, and that’s how I saved $100 on a PS5.
That is one way.

I saved like 300€ on PS5 disc version, by buying games used for 20-40€ within 1-6 weeks of launch and then resold many of them with +-5€ margin after completion, or just kept them and still got them pretty cheap.

Disc version always gives the option to buy&resell used copies, which is usually superior way to save money in the long run, and it also can be used for digital games, so it is win-win, for digital only you either have to lose 10-30€ for every new game on launch window, or wait for 4-12 months to get even remotely as good as deals as for used copies.

But each to their own, there are many styles to save money.
 
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Monokrom

Member
Starting your entire post off with a massive falsity. Bold.
I think it depends where you live. Here in Sweden the main retailers are out of stock (just checked) and the few that are available is quite expensive.
But I guess it's a bit different in US.
 

Mr.Phoenix

Member
The bundles are 560 not 550. They give you a 10-dollar break by forcing/incentivizing you to buy the game of their choice. These games are generally games that Sony have specific marketing deals with, so ensuring a certain number of titles sell, helps them mitigate the costs of those marketing/exclusive deals and in the case of their own games, pump up the overall sales numbers.
Doesnt matter if the bundles save you $10/$20. Its still a deal and Boderline price drop cause it cost you more to buy them separately. And no one is forcing you to buy anything. You are making this more than it is all in the name of pushing your point.

If you want, right now, you can still buy a standard disc PS5 for $499. Or the GOWR Bunde for $510 (albeit it was originally $560)

If you were being forced... it would mean there is NO option to buy the OG SKUs anymore. That is clearly not the case.
The problem is you're assuming significantly different sales at 400 than at 500, whereas we know the ps5 digital is already at 400. If they wanted to sell the unit at this price, they could have sold more of these, but they've opted not to.
Ok. Fair enough...I am assuming they choose to see at $399 vs $450+. But you are assuming that a PS5s will somehow cost as much as a PS5 with a disc drive cost to make ($450) almost 3 years ago. Meanwhile, my assumption is based on my belief that the disc-free PS5s would cost no more than (or around) $350 to make. So even if they sell for $399, that's already a $50 markup.

Of both our assumptions, which do you think is more reasonable?
I would be stunned if it has a slide-in cartridge given that we're assuming it's going to have a slim form factor. I'm guessing it will just connect via a usb port, likely the USB A port.
Sony would never do something as ghetto as that. They wud build some sort f connection interface onto their PCB. And build the console in such a way that you can slide and lock the disc drive into the console in some sort of nice, plug n and forget kinda way. It's the sony way... and there is precedent.
PS2_HDD_adapter2-e1650921535974.jpg



You think the new PS5 and disc drive will retail for less than the current PS5? You really must not know Jim Ryan.

But we'll see, will be an interesting one to look back at in a couple months.
Yup, we will. What you are failing to consider, is that even at $399 new SKU + $70-$100 DDA, they would be making more money than they are currently making for a $499 PS6 with a disc drive.

Hell, even if you decide to not buy a DDA,and just a PS5s for $399, they would probably be making a profit on that.
 
Doesnt matter if the bundles save you $10/$20. Its still a deal and Boderline price drop cause it cost you more to buy them separately. And no one is forcing you to buy anything. You are making this more than it is all in the name of pushing your point.

If you want, right now, you can still buy a standard disc PS5 for $499. Or the GOWR Bunde for $510 (albeit it was originally $560)

If you were being forced... it would mean there is NO option to buy the OG SKUs anymore. That is clearly not the case.

Ok. Fair enough...I am assuming they choose to see at $399 vs $450+. But you are assuming that a PS5s will somehow cost as much as a PS5 with a disc drive cost to make ($450) almost 3 years ago. Meanwhile, my assumption is based on my belief that the disc-free PS5s would cost no more than (or around) $350 to make. So even if they sell for $399, that's already a $50 markup.

Of both our assumptions, which do you think is more reasonable?

Sony would never do something as ghetto as that. They wud build some sort f connection interface onto their PCB. And build the console in such a way that you can slide and lock the disc drive into the console in some sort of nice, plug n and forget kinda way. It's the sony way... and there is precedent.
PS2_HDD_adapter2-e1650921535974.jpg




Yup, we will. What you are failing to consider, is that even at $399 new SKU + $70-$100 DDA, they would be making more money than they are currently making for a $499 PS6 with a disc drive.

Hell, even if you decide to not buy a DDA,and just a PS5s for $399, they would probably be making a profit on that.


It's a deal that helps Sony's margins since they are selling more software units. Whether they sell software at 60 or 70, as long as they sell units, they're profiting. I said force/incentivized, but you ignored incentivized. There are times when it's difficult to get a PS5 without a bundle or the wait is longer. These bundles are there to drive attach rate and margin. You'll note that they don't have a bundle that is "buy a PS5 and get any game for 60 dollars".

You're mistaken again. Ultimately it doesn't matter how much it "cost" sony to make the new hardware. It's about how much they can sell it for and what their profit margin is to drive operating income. They expect an 8% increase in operating income in the next fiscal year, with a lot of that to do with improvement in hardware profitability. Note that the fiscal year runs from April to March, so by the time they launch this in either September or October they're only going to get 5-6 months with this new sku.

Dropping the price of the PS5 to 400 dollars unless they maintained the standard sku isn't going to generate significant profitability. That's the equivalent of a 16% or more increase in operating income for the full duration of a year. That's significant, especially with their expectation of increased units sold in FY23 vs FY22.

Since they do not sell many digital units at the present the vast majority of their sales are standard units. Dropping the price of this from 500 to 400 even if they're reducing cost by 75 dollars would result in decreased hardware profitability, which isn't in line with their forecast.

That's like saying they'd build an internal camera for the PS Camera, which they never did or ignoring the multi-tap they created for PS1 and PS2.
 

El Muerto

Member
The Series X inventory was low the past couple months and you couldnt find them in stores. Now there seems to be more and my local stores have them back in stock. If the new slim PS5 has a detachable disk, then i'm scared that 1. the drive will be horribly overpriced like all of Sony's accessories and 2. Limited quanities will be available. Imagine buying the PS5 slim and when the PS6 is announced you wont be able to find a replacement drive.
 
That they are hardware constrained on the X. They aren't. There's plenty of x available.

They aren't hardware constrained, they're making an active decision not to produce in great quantities. You can find it, that's for sure, but that doesn't mean it is widely distributed. You still can't get it from Amazon, Gamestop or Best Buy. You can get it from Target or Walmart though.

And I'm mainly talking about without bundle.
 
The Series X inventory was low the past couple months and you couldnt find them in stores. Now there seems to be more and my local stores have them back in stock. If the new slim PS5 has a detachable disk, then i'm scared that 1. the drive will be horribly overpriced like all of Sony's accessories and 2. Limited quanities will be available. Imagine buying the PS5 slim and when the PS6 is announced you wont be able to find a replacement drive.

My guess is that the drive could end up being will be forward-compatible though maybe that's me being naive.
 

FrankWza

Member
They aren't hardware constrained, they're making an active decision not to produce in great quantities. You can find it, that's for sure, but that doesn't mean it is widely distributed. You still can't get it from Amazon, Gamestop or Best Buy. You can get it from Target or Walmart though.

And I'm mainly talking about without bundle.
I agree they're not constrained. The demand is low.
 
You forgot retailers aren't interested much in selling digital-only devices that completely cut them out of the equation.
Game stores sure but do other retailers give a shit?
Selling electronics is just shoveling boxes around in warehouses these days.
 

Astray

Gold Member
You're assuming that it is the retailer's choice in this scenario.
Retailers are the ones who make the orders as they wish, if they get forced into something by Sony or Microsoft they could run into antitrust issues, and who needs that?

Game stores sure but do other retailers give a shit?
Selling electronics is just shoveling boxes around in warehouses these days.
Yes those retailers care, they have business development units working on each category (Televisions Video Games etc).
 

Flutta

Banned
Not sure even MS knows what they’re doing.

They’re in shambles, panic mode as we speak.
 
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jroc74

Phone reception is more important to me than human rights
You say they barely sell the PS5 DE...but since these consoles launched, many times the PS5 DE outsold both Series consoles combined.

I guess it looks small since the PS5 is selling like hotcakes right now, but still.
 

Codeblew

Member
Will you close your account when you're wrong about all of that? I'm saving the post. I guarantee the discless PS5 will be a slim and I'm willing to bet you on that. I'm also pretty confident that it will cost more than 400 dollars. Since you're certain, I'm sure you're willing to put up your account?

It was obvious to me, that's why I said it. That being said, otherwise didn't think that was the case.
No shit sherlock. Of course the next PS5 is going to be a slim. All of the next slim PS5's are going to be DE versions. Current models will no longer be manufactured.

As far as price cut goes, They will cut the price like they have in the past. They will probably sell the Disc drive for $100 (which probably costs $20 to make).
 

Loomy

Thinks Microaggressions are Real
Speaking of which, I think Sony similarly realized that the PS5 Digital doesn't make a ton of sense either cost-wise. They barely sell the thing and they'll almost certainly discontinue it after this summer with the disk drive free PS5 standard that will certainly be a slim model. The difference is that won't be priced at $400 dollars, it'll be full-priced like the PS5 Standard. I think what they've seen is that people gravitate to digital downloads whether they have a disk drive included or not, so all they're doing is taking a 100-dollar loss (less drive cost, shipping weight, and distribution costs).
Am I reading this correctly? You're saying Sony will discontinue the PS5 DE because they're going to release a PS5 with no disc drive?
 
No shit sherlock. Of course the next PS5 is going to be a slim. All of the next slim PS5's are going to be DE versions. Current models will no longer be manufactured.

As far as price cut goes, They will cut the price like they have in the past. They will probably sell the Disc drive for $100 (which probably costs $20 to make).
Hilarious how some of these jerks say of course the next ps5 will be slim while other jerks say that’s the stupidest thing ever.

How about you both find something better to do
 
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