Bloomberg: PlayStation 5's Bill of Materials have been pushed up to $450 due to scarce NAND and DRAM components

Nov 27, 2017
9,083
Boston MA
I’m thinking premium and core system bundles will make a comeback
Throw in god of war, horizon and the last of us 2 to show off the BC features and 3 months of PS+ for $549/$599
Bare bones version for $499
 

napata

Member
Nov 2, 2017
794
But most posters on here always say to me that retail price has nothing to do with the components of the console.
Does that actually sound believable? B2B & B2C prices are obviously linked. It's just that you can't really deduce the B2B price from the B2C price but to say that there's no relation between them is hogwash.
 

Strike

Member
Oct 25, 2017
13,686
I guess it'll depend or whether or not they want to make or lose $50 on this thing.
 

KojiKnight

Member
Oct 25, 2017
10,433
If the bill of materials is 450, Sony would still be selling at a loss for $499, and likely even $549. Materials need to be assembled, shipped, and sold with enough margin so that retailers can turn a profit. Not to mention all of the sunk costs in the form of R&D.

Not saying they wouldn't sell the system for 499, I just honestly would be surprised if it was cheaper. Sony isn't in the business of taking a 200+ dollar hit per console anymore.
 

Isayas

Member
Jun 10, 2018
2,547
Does that actually sound believable? B2B & B2C prices are obviously linked. It's just that you can't really deduce the B2B price from the B2C price but to say that there's no relation between them is hogwash.
I mean what you are saying sounds about right but I guess I am doing something wrong.
 
Nov 14, 2017
2,932
Does that actually sound believable? B2B & B2C prices are obviously linked. It's just that you can't really deduce the B2B price from the B2C price but to say that there's no relation between them is hogwash.
That meme came about because AMD and Nvidia GPUs were (and maybe still are?) overpriced for the area of silicon they use. Nvidia didn't have any competition at the high end of performance so were free to charge whatever the market would bear. That pushed prices up so much that even when AMD competes on price, it's still relatively expensive in relation to the silicon they use.

I'm not sure if this is still the case or not though.
 

yurr

Member
Nov 20, 2019
465
The PS3 was $599 because each unit cost something like $800. A $450 unit cost doesn't get you to $599. $499 makes more sense unless Sony is willing to take a loss on HW initially.
I hate how no one ever seems to remember the base Ps3 was 499. Kojima was right, memes have taken over.
 

RKR

Member
Oct 27, 2017
2,040
NL
Times have changed. Lots of consumers have no issues buying smartphones and macbooks at a premium today. Those prices have really skyrocketed. The Xbox one X was sold for 499 and not to much backlash either.

I don't see an issue with a 499 PS5. If its marketed well, it will sell. Even 599 would work if the thing is really delivering unlike the PS3 that didn't offer much compared to the competition that was already available and far cheaper to boot. Most powerful Xbox won't be sold for under 499 I reckon.
 

TitlePending

The Fallen
Dec 26, 2018
1,700
$500 for the first year makes sense since stock will be limited and early adopters will pay for it. Might as well maximize profits/minimize losses.

Selling it a higher price decreases the chance of scalpers trying to take more stock and sell at inflated prices.
 

Zombine

Member
Oct 25, 2017
3,613
I’m ok with $500 for both consoles, but I would only get one at launch if they were both $600.
 

Wandu

Member
Oct 27, 2017
1,883
I always expected PS5 to retail at $499, so while it sucks for them to up the price due to component supply issues, it is not surprising to me.
 

rebelcrusader

Member
Oct 25, 2017
1,230
Well if Lockhart is a one X in a different box, then I’m sure the mass market will eat it up, but it only takes one article from a major tech site to destroy all of that.
will have a much weaker gpu than xbox one x - the cpu will be much more powerful

Also wth are you talking about "one article from a major tech site"
 

llexan

Member
Oct 27, 2017
107
Tennessee, USA
Agreed that this basically guarantees both console are going to be $499 at launch. $399 just isn’t going to happen, though maybe the cheaper NextBox will come in at that price?
 

Soap

Member
Oct 27, 2017
2,782
Sony unveiled PS4 months before talking about the price. They don't have to talk about the price for another 6 months. This half is to show the box, show what its capable of, get people excited - maybe a little bit try and emphasise the power/value so people start to expect it to be more expensive.
The only reason I think it will be different is because they won’t be at E3, so unless they have two shows planned I think they would probably do it all at once.
 

KojiKnight

Member
Oct 25, 2017
10,433
I hate how no one ever seems to remember the base Ps3 was 499. Kojima was right, memes have taken over.
No one bought the base model... 20gb hard drive, no wifi, no ps2 BC, no expansion ports. I can't remember if it even came with USB or HDMI.

That machine was neutered to hell and back.
 

jelly

Member
Oct 26, 2017
13,136
Never thought 399 was possible outside of that Lockhart console if it ever happens. You are getting seriously good hardware for 499 or thereabouts and probably nothing major of note that isn't cross gen to begin with unless Sony have Horizon 2 ready to go so very much an enthusiast, money to spare buy.
 
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MrKlaw

Member
Oct 25, 2017
10,848
The only reason I think it will be different is because they won’t be at E3, so unless they have two shows planned I think they would probably do it all at once.
true - and the wired stuff is already showing/telling things much earlier than before. Maybe the core tech they've talked about is enough for them for now - and we won't hear from them at all until later (I hope not though)

and I fully expect them to wait until after MS E3 conference before they talk about price. They've done that muliple times before, I don't expect anything different there.
 

SpaceCrystal

Member
Apr 1, 2019
2,464
It's a lot easier to do it now then it was before, because the revenue you make back from online sales is so high
Just take the loss, $399 is too important.
Sony's not going to want to take a huge loss off of each console sold. That PSN revenue that they made from the PS4 will go bye-bye if they do, just like they completely wiped out all profits that they made on the PS1, PS2 &/or the PSP with the PS3 trying to keep that console afloat.

I hope ya'll are saving up now. You have like 7 or 8 months to get ready. You too can find a way to save $75/month. Just do it.
I'll wait for the inevitable slim model, thanks.
 
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Cyanity

Member
Oct 25, 2017
6,702
So probably $500 console and Sony's usual anti-consumer exclusivity nonsense to pressure people into buying their consoles, then?

edit - I don't really want to get into console-wars stuff, I just firmly hold the belief that forcing people to wait a year to play a game or buy dlc for a game they already own is anti-consumer as all hell and would like to see the practice go away
 
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PogChamp

The Fallen
Oct 27, 2017
7,461
"many of PS5 launch games will also be on PS4"

That's awesome to hear. Will definitely hold off on PS5 if that's the case.
 

Betty

The Fallen
Oct 25, 2017
11,493
So probably $500 console and Sony's usual anti-consumer exclusivity nonsense to pressure people into buying their consoles, then?
You mean timed exclusives? Or timed exclusive DLC? I mean yeah, that'll probably happen, especially if they get the Call of Duty marketing again.
 

mutantmagnet

Member
Oct 28, 2017
9,899
When you factor in inflation, and $400 USD back in 2013 is ~$450 USD now then $500 for more advanced tech in 2020 seems reasonably priced to me.
But do to rising income inequality the decreasing purchasing power of the average consumer is out pacing inflation.

The price is technically fine but the world is shifting into a state where expected value will be treated very differently compared to a decade ago.
 

Cyanity

Member
Oct 25, 2017
6,702
You mean timed exclusives? Or timed exclusive DLC? I mean yeah, that'll probably happen, especially if they get the Call of Duty marketing again.
I know this is basically port begging, but I really wish Sony would get on Microsoft's level and start releasing their games on pc as well as console, instead of pressuring people into spending hundreds of dollars on hardware they're likely going to be taking big losses on anyway.
 

Acquiescence

Member
Oct 26, 2017
7,303
Lake Titicaca
It's probably gonna be about £450 at launch isn't it. Good lord, I don't see myself paying that much for a PS5. I'll probably have to hold off until it's cheaper; hopefully there won't be any must have exclusives in the first year!

fuck it, i'll pay 450 quid for Gravity Rush 3
 

Betty

The Fallen
Oct 25, 2017
11,493
I know this is basically port begging, but I really wish Sony would get on Microsoft's level and start releasing their games on pc as well as console, instead of pressuring people into spending hundreds of dollars on hardware they're likely going to be taking big losses on anyway.
Much like Nintendo, that'll never happen to the degree you'd prefer.
 

Kamek

Member
Oct 27, 2017
1,519
As long as the specs are good, I don't mind spending a decent amount. I'd probably be in for the inevitable mid gen upgrade too, so I hope they can keep this 499 max.
 

liquidmetal14

Member
Oct 25, 2017
998
Florida
Sony's making all the right moves to have a reliable box. Prepared for a 4-500 machine and with the specs of both next gen consoles, that would be justified.