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Microsoft to completely stop Xbox Series production for the quarter and Sony to halve production after lower-than-expected sales during Christmas

DJ12

Member
The disc PS5 supposedly makes a profit whilst the Digital break even.

I call this rumour as BS on both parts but mostly on the PS5 one.

But the consoles need to have a price cut. The PS5 is almost 500 quids in UK, 550 euros in Europe. $500 in US and 800 doliroos in Australia.
I can fully believe MS have stopped production of the series x, I bet they will start producing the discless version no one wants when stock levels have dropped sufficiently.

Cannot imagine MS want to subsidise the console for its entire life cycle.
 

Astray

Gold Member
I can fully believe MS have stopped production of the series x, I bet they will start producing the discless version no one wants when stock levels have dropped sufficiently.
That would be a different thing, it's called a production line changeover, what we're seeing cited here is a complete halt, meaning nothing gets produced whatsoever. Reminder that this includes the Series S as well, which already got a 1TB SKU added last year.

I think this report is accurate for both parties, as it's corroborated by AMD saying they expect a double-digit decline in console sales, which makes sense because they are the supplier for both.
 

DenchDeckard

Moderated wildly
Price drops needed. You can still buy he standard old design PS5 in the UK, thats after them tanking the price for months as well. They had record sales, but there is obviously shit loads of inventory out there. I feel Sony were really pushing for that 25 mill, which I don't blame them for but theres probably too much stock still in the channel that they need to clear through.

Xbox is just fucked.
 

Topher

Gold Member
If Xbox stops manufacturing:
ha ha simpsons GIF


If Sony stops:
I Dont Believe You Will Ferrell GIF

Uh.....this doesn't reflect what the article says or the responses to it.

Now everyone’s trying to dig up any news they hear about MS for clicks.

...Sony to halve production after lower-than-expected sales during Christmas​


Come On Reaction GIF by MOODMAN
 
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reinking

Gold Member
PS5 had its best month ever in November. Or am I remembering it wrong? Over 50 millions sold so far? What gives? Did they over produce? Trying to burn through the fat model inventory?
 

BlackTron

Member
If it's true, half a million is a lot more than zero. And it could even be the end of current model Xbox production altogether. By the time they have to finalize plans for q2, Phil could change his mind 17 times, or Satya exactly once.
 
Looks like some big decisions have been made at MS. The trouble with stopping production is the cost in tens of millions just to start up again before even 1 more unit is produced.
 
Would be good to see some price drops. Usually the price lowers over time and the more casual people can get one.

For me a PS5 would be a GT7 box but just not arsed spending that amount, more so after how long they've been out and Pro around the corner. Same with graphics cards, still on the GTX 1080.
 
Factories don't just sit there empty waiting for MS to give order on the next production run. The factory and staff will be utilised for other products. For a second xbox run, factory staff will have to be retrained, machines and floor has to be re-tooled. Bill of materials reworked, etc. Factory time has to be rescheduled and new contracts set up. That's why it's a major decision to halt.
 

JackMcGunns

Member
Factories don't just sit there empty waiting for MS to give order on the next production run. The factory and staff will be utilised for other products. For a second xbox run, factory staff will have to be retrained, machines and floor has to be re-tooled. Bill of materials reworked, etc. Factory time has to be rescheduled and new contracts set up. That's why it's a major decision to halt.


You did pull "Tens of Millions!!" out your ass though

dr-austin.gif
 

Fake

Member
Is the PS5 DE that is not making much sales, correct?

If Sony is starting to stop the production of the Digital Edition would be more believable because the DE sales are low in comparison with the regular PS5.
 
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Cyberpunkd

Member
I might be stupid, but is anyone also thinking this really spiralled out of control in the past 12 months and feeling like Microsoft is going 0 to 100 in even shorter period of time?
 

DaGwaphics

Member
If there is any legitimacy to this, it begs the question: Exactly how many units did they expect to sell over the holiday? Keep in mind that both set sales records for the platforms in the month.

They both just threw darts at a board and decided that 2023 was going to be the best holiday ever. 🤷‍♂️
 

midnightAI

Member
Agree. Some here just need to turn anything/everything into a "GAF is biased against Xbox" take even when the title clearly highlights both Sony and Microsoft.
While this whole thing is BS in my opinion, for all we know Sony may have doubled production for the Christmas period and then halved it to go back to normal (if its true...... which it isnt..... probably)
 

Astray

Gold Member
They both just threw darts at a board and decided that 2023 was going to be the best holiday ever. 🤷‍♂️
First rule of forecasting is that your forecast is always wrong even when it's "right".

No one ever gets it right, especially when it gets more granular.
 

DrFigs

Member
Seems unlikely xbox would discontinue the xbox now. I think it may even be more likely that PS5 really did decrease production, and idk by half sees believable enough. Do console sales typically go up from Q4 to Q1?
 
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That makes sense to me as far as MS goes.

- Ramped up console production for Starfield, and that product didn't move systems to the expected degree
- Deep discounted Series X during the holiday season down to $349 to clear out excess stock
- Very obviously the leaked Series X 'digital' replacing the current model is on the foreseeable horizon

Where Sony is concerned, I'm wondering if the number of people willing to pay $450-$500 for a console is beginning to thin out. 3 years into last gen, the PS4 had undergone a revision and drop to $299, and the $399 price was subsequently occupied by the Pro. I'm not sure if this time around they're going to do something similar or introduce the Pro at like $599 and maintain current pricing for the existing models.
 
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mckmas8808

Mckmaster uses MasterCard to buy Slave drives
This isn't particularly good news for PS5 as well dude, lmao.

This is neutral news for Sony. Mainly because we actually know what they have been selling for all of 2023. It means instead of selling 25 million PS5s, maybe they'll sell 23.x million. WHOA! Biiiiiiiiig deal. They only broke their all-time record by only a few hundred thousand, instead of millions.

Plus.......had the PS5 slim launched at the "expected" price that "we" thought, it would have easily sold that 25 million. I'm wondering a year ago, did Sony know they were going to raise the price of the PS5 DE the whole time? Or were they pushed into that direction by greed or inflation?
 

DrFigs

Member
the prices on these consoles are insane. the xbox one and ps4 both had permanent price decreases 2 years in iirc. we're heading into the 4th year of the consoles being 500 dollars. And the MSRP of the digital ps5 is actually 50 dollars more expensive than it was in 2020.
 
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mckmas8808

Mckmaster uses MasterCard to buy Slave drives
The price of these machines have to drop but that can only happen if component pricing drops. If game consoles which are traditionally recession proof items are stopping/reducing production, then other industries are screwed big time. It's year 3 for these consoles, price should drop to $399

They are in their 4th year.
 

magnumpy

Member
is this a symptom of a bad global economy? PS5 production cut in half and Xbox stopped entirely :eek:

what's Nintendo doing with Switch production? no change, or some cuts, or what?
 

HeWhoWalks

Gold Member
This is neutral news for Sony. Mainly because we actually know what they have been selling for all of 2023. It means instead of selling 25 million PS5s, maybe they'll sell 23.x million. WHOA! Biiiiiiiiig deal. They only broke their all-time record by only a few hundred thousand, instead of millions.

Plus.......had the PS5 slim launched at the "expected" price that "we" thought, it would have easily sold that 25 million. I'm wondering a year ago, did Sony know they were going to raise the price of the PS5 DE the whole time? Or were they pushed into that direction by greed or inflation?
Really. Not sure why the spin towards Sony like they're in bad shape. A price cut is likely all the Ibuprofen they need. Perhaps another banger like FFVII and Spider-Man 2 as well.

Xbox? Yikes. If that is the case, it is clear that a major shakeup is needed.
 
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Dorfdad

Gold Member
Duh it’s obvious they have halted the Xbox series x production to make room for the shadow drop Xbox series x pro next week!

ITS happening.gif would be inserted here if I knew how to!

/s
 

Elysium44

Banned
the prices on these consoles are insane. the xbox one and ps4 both had permanent price decreases 2 years in iirc. we're heading into the 4th year of the consoles being 500 dollars. And the MSRP of the digital ps5 is actually 50 dollars more expensive than it was in 2020.

The prices are reasonable as far as I'm concerned. We've had inflation since 2016. The slim PS4 released at $299 which is $380 in today's dollars. It had a 512GB 5400rpm hard drive. The PS5 slim has a 1TB SSD, not to mention a much more powerful CPU and GPU. It is very cheap for what it is.
 

JayK47

Member
As some have pointed out, a price cut is needed. It used to be done in the past, but now they maintain these high prices. I purchased most of my consoles after price cut. It is the only way I will consider a PS5 at this point as their first party games have taken a dive since PS4.
 

Mr Moose

Member
Didn't PS5 have great holiday numbers?
I know Xbox is expecting a drop of 40% YoY but stopping fully for the Q? Hmm... Doubt.
 
The prices are reasonable as far as I'm concerned. We've had inflation since 2016. The slim PS4 released at $299 which is $380 in today's dollars. It had a 512GB 5400rpm hard drive. The PS5 slim has a 1TB SSD, not to mention a much more powerful CPU and GPU. It is very cheap for what it is.
Taken from the lens of inflation, I guess economies of scale haven't balanced that out 3+ years in. Irrespective of that, eventually you're going to price out a large number of people who typically buy-in at lower price points. I'm betting the majority of PS4s sold at $299, not $399 ( just a guess of course). Of course, the economy is different post 2020 but it is what it is. It feels like $100 leaves my wallet every-time I leave my house nowadays.
 

ShirAhava

Plays with kids toys, in the adult gaming world
Demand just isn't there across the board hence cutbacks

I remember that article about how kids want digital currency rather than consoles these days

XBOX flopping is ahead of the curve in a way I don't see much a future for the home console model in general the service/sub model is the future for everyone and everything

Consoles will still be around...they just wont be a factor everything is going to keep getting scaled down your watch, samsung fridge will have a PS6 app, xbox app ect.
 
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