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

Apathy

Member
Oct 25, 2017
5,402
So probably $500 console and Sony's usual anti-consumer exclusivity nonsense to pressure people into buying their consoles, then?
Wow I thought this was a joke post at first. You really need to learn what anticonsumer actually means, and a little hint, exclusives to sell a product aren't that.
"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.
It's just like every console launch. There are cross gen games like sports games or yearly installments like cod/ac. Is this your first time at the rodeo? Sony itself is going to be making exclusives for the ps5 but lots of third parties will still do their normal cross gen stuff
 
Jun 23, 2019
2,480
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.
This is not the same Sony from last generation though. The money that Sony and MS make in digital sales and service far outstrip the money they would lose adopting a loss leading strategy. Sony wasn’t trying to lose too much money on the PS4 because their entire business was depending on the PS4 being successful, which it was and then some. Now, they have the ability to go into a loss lead adoption that could potentially put them right back into the driver’s seat.
 

PogChamp

The Fallen
Oct 27, 2017
6,878
It's just like every console launch. There are cross gen games like sports games or yearly installments like cod/ac. Is this your first time at the rodeo? Sony itself is going to be making exclusives for the ps5 but lots of third parties will still do their normal cross gen stuff
I've only seen the PS3 to PS4 transition, and the Gamecube > Wii > Switch transitions. I don't really remember what the cross gen launch titles were like but I don't remember there being much. I guess I misinterpreted that quote, I thought they meant first party games, not the typical third party games that are put out on every platform.
 

Megaman5

Member
Nov 15, 2018
244
While I don't think Microsoft will take a $200 loss, they do have far more xbox subscription based services than 2013 for revenue. Before it was just xbox live, now it's that plus Gamepass and soon Xcloud. A $100 loss is doable for them.
 

RCU005

Member
Dec 8, 2017
498
Why is this news? Wasn't the PS3 and PS4 sold at a loss at launch? I know PS4 recovered way faster than the PS3, but there is no way Microsoft will sell the Xbox Series X lower than $499, and everybody was saying that $499 for both consoles was perfectly fine. Then, all of a sudden, this "news" is trying to make people think the price of the PS5 will be outrageously high? This Bloomberg article has the intention to harm the hype of the PS5.
 
Nov 15, 2018
630
Asked about when he expects Sony to provide guidance on the gaming business outlook for the new fiscal year, Totoki said the plan is no different from the recent past, meaning the guidance can be expected around the end of April.

If the company takes longer than usual, analysts may look to its next investor relations meeting to glean hints about the new console’s retail price. The company held that meeting in late May last year.
We're waiting for late April / late May for more PS5 info. Maybe between TLOU2 and E3 even?
 

Tharp

Member
Oct 27, 2017
3,910
Exclusive games are the main reason why consoles are worth having.
Non-exclusive games vastly outsell exclusive games in most years. A lot of people prefer the convenience and form-factor of a console. Exclusives are a factor but even if exclusives went away, console sales would still be huge. If I told someone like my brother that he had to build or buy a PC in order to play this year's Madden and CoD, he would most likely quit gaming or move to something like Stadia.
 

c bweezie

Member
Jan 8, 2020
39
Given the hubbabaloo over Microsoft's stated approach, i'm surprised not much is being made of the news that PS5 launch games will also be on PS4. Of course, it's totally possible i'm misunderstanding something.

As for the price, I've always thought the price would be $499. I don't think Sony is interested in selling the console at a loss given its market position.
 

Dphex

Member
Oct 27, 2017
8,154
Cologne, Germany
We're waiting for late April / late May for more PS5 info. Maybe between TLOU2 and E3 even?
at this point i wouldn´t be surprised if they hold off as long as they can, seems there are many things still up in the air. they could also come in late summer when releasing in November...

Given the hubbabaloo over Microsoft's stated approach, i'm surprised not much is being made of the news that PS5 launch games will also be on PS4. Of course, it's totally possible i'm misunderstanding something.

As for the price, I've always thought the price would be $499. I don't think Sony is interested in selling the console at a loss given its market position.
i think this means there will be more crossgen games than ever before but still a few exclusives.

and yeah, under 499 bucks there won´t be any new console this time
 

cowbanana

Member
Feb 2, 2018
3,424
Traveling without moving
Today I've learned that if Sony had spent upwards of a whole dollar more on the cooling solution for the PS4 Pro it might have turned out differently than the worst piece of noisy shit I've ever bought.
 

Apathy

Member
Oct 25, 2017
5,402
Imagine you thinking this is relevant in any way.

If Nadella thinks Xbox is essential to Microsoft’s future ambitions and cloud offerings, they’ll fund it as much as they need to.
We going back to "the Xbox division has access to the ms warchest" again? While cloud is important and the Xbox has a partial part in that, they don't get a blank cheque. The investors would go nuts
 
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Betty

The Fallen
Oct 25, 2017
10,979
Given the hubbabaloo over Microsoft's stated approach, i'm surprised not much is being made of the news that PS5 launch games will also be on PS4. Of course, it's totally possible i'm misunderstanding something.

As for the price, I've always thought the price would be $499. I don't think Sony is interested in selling the console at a loss given its market position.
The difference is, so far as we know, ALL Xbox games will be cross gen for at least another year.

Meanwhile PS5 will have some exclusives, but many will be on PS4 also.
 

gofreak

Member
Oct 26, 2017
3,400
People are really thinking Sony will eat a $100 loss?
They could? If some loss leading wasn't on the table, then I'm not sure this article would exist. It exists because there seems to be debate internally about which route to take. Granted, we don't know to what extent they'd be willing to take losses, but - say - $100 on hw, would not be the largest loss on hardware they ever took, and doesn't look too infeasible when you look at current operating income for the game business, and the data they released last year on the value of year one customers over a lifecycle.

Doesn't mean they will take such a loss, but it's not impossible it would be on the table.

Given the hubbabaloo over Microsoft's stated approach, i'm surprised not much is being made of the news that PS5 launch games will also be on PS4. Of course, it's totally possible i'm misunderstanding something.
I think you are. The article says 'many' games will be on PS4 also, not that all will be. That's not dissimilar to the case with every previous console launch. What would be different would be Microsoft's approach, where it seems all will also be on the prior console, with no initial first party exclusives. On the other hand, the note in the Bloomberg article leaves things perfectly open to a 'normal' next-gen launch for PS5 - a smattering of next-gen exclusives, with mostly cross gen third party games.
 

Dphex

Member
Oct 27, 2017
8,154
Cologne, Germany
Today I've learned that if Sony had spent upwards of a whole dollar more on the cooling solution for the PS4 Pro it might have turned out differently than the worst piece of noisy shit I've ever bought.
this console was really getting on my nerves many times...i have one with coil whine too so it isn´t only loud, it also has an annoying sound that is running on top
 

Giant Panda

Member
Oct 25, 2017
747
I reeaally hope the talk of expensive cooling doesn't mean that Sony went with a Navi GPU at 36 CU at 2 GHz.
 
Oct 27, 2017
6,981
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.
well I wouldn’t say X1X selling to 20% of Xbox buyers, which was the lowest selling console this gen (unless Wii U is included) at roughly 8M per year (so 1.6-2M X1X per year) doesn’t exactly scream success for that $499 price. And they did rush to get XB1 down to $399 like 6 months after launch.

and smartphone sales have slowed as prices got higher, people are upgrading every 3 years instead of 2, so yes people are okay with higher prices but it doesn’t necessarily mean they will buy at traditional rates/timelines.
 

10k

Member
Oct 25, 2017
4,770
Toronto, Ontario, Canada
Both console are gonna be $500+ which when you adjust for inflation and what you're getting with these consoles, makes sense.

You can get away with $599 USD in 2020. Not in 2006.
 
Nov 15, 2018
630
at this point i wouldn´t be surprised if they hold off as long as they can, seems there are many things still up in the air. they could also come in late summer when releasing in November...
i mean...Switch was announced like 4 or 5 months before release right?
I honestly don't get why people are feeling so entitled about the PS5 and expecting Sony to announce everything right now, 9 months before release.
 

Kaguya

Member
Jun 19, 2018
3,317
Haven’t they done that before? I don’t think it’s some outlandish statement.

Personally I think PS5 will be $499 but $399 wouldn’t shock me at all even with this news.
They ate $100 when their cost was way too high for consumers, they ate $100 and still launch one of the most expensive consoles ever. They're not eating $100 if they can still launch at a reasonable price without doing so.
 

Hace

Member
Sep 21, 2018
681
weird how everyone putting their manufacturing in a single country can maybe backfire
 

ponzies

Member
Oct 28, 2017
175
Would Xbox outsell PS5 if they take a loss and launch their console at $399 and Sony's launches the PS5 at $499?
 

Gemüsepizza

Member
Oct 26, 2017
1,328
Just a quick FYI: The author of this article, Takashi Mochizuki, is known for making up shit:

He has misattributed and misconstrued quotes from Sony executives before publishing misleading stories from them.


And in May 2018 he also wrote this, and claimed he got this info from Sony PR (which was obviously a lie):



So better take this article with a huge grain of salt.
 

Drey1082

Member
Oct 27, 2017
688
My assumption is 500 USD for PS5. To be honest I never expected anything less than 500 based on the rumors, and would have been much more shocked to see 400 than I would have to see 600. 400USD is just way to low when you factor in marketing, shipping, and the other operating costs not factored in here.

It really does come down to what Microsoft does, because I think it will be very telling to see how important they feel the xbox console actually is in 2020 vs the xbox services / ecosystem. Xbox has taken a lot of steps to diversify away from pure console, while Sony is still heavily dependent on a console getting a big install base.

Therefore, in regards to pricing, I only see Sony going as low as they possibly can. I could see Microsoft going for a "premium" price (over the PS5) for the series x based on a) their rumored power advantage b) the fact that "series" most likely means there will be a cheaper option soon for the non "premium" segment that's priced below PS5. c) the fact that they have the ability to distribute games and sell services through PC and XCloud, and aren't so reliant on that install base. e) the fact that they've outlined their main competitors as Google and Amazon, meaning they're going down the services / distribution route.

I don't see Microsoft undercutting Sony. Possible, but I think they're going for the pure power win at a premium price, and using a "series c" or something as a slightly less power, cheaper option for the masses.
 

gothmog

Member
Oct 28, 2017
354
NY
I mean while we're haggling over these companies to take losses, I'd love MS and Sony to give me their boxes for $299 a piece. That way I buy both on day one and can be living in true next generation bliss.
 

cowbanana

Member
Feb 2, 2018
3,424
Traveling without moving
this console was really getting on my nerves many times...i have one with coil whine too so it isn´t only loud, it also has an annoying sound that is running on top
I still have my Pro, but I don't use it anymore because of the noise. I've gone back to my PS4 Amateur which is as silent as the day I bought it years ago. I played Days Gone and Death Stranding on my old PS4 unit and the games played just fine. These days it's mostly a Monster Hunter World machine with an occasional PS4 exclusive in the mix. I play all multiplatform games on PC.

I guess I could try and fix the Pro, but it's not worth the hassle to me. Easily the worst console/electronic device I've ever owned. Sony should be ashamed of that piece of shit.
 

c bweezie

Member
Jan 8, 2020
39
They could? If some loss leading wasn't on the table, then I'm not sure this article would exist. It exists because there seems to be debate internally about which route to take. Granted, we don't know to what extent they'd be willing to take losses, but - say - $100 on hw, would not be the largest loss on hardware they ever took, and doesn't look too infeasible when you look at current operating income for the game business, and the data they released last year on the value of year one customers over a lifecycle.

Doesn't mean they will take such a loss, but it's not impossible it would be on the table.



I think you are. The article says 'many' games will be on PS4 also, not that all will be. That's not dissimilar to the case with every previous console launch. What would be different would be Microsoft's approach, where it seems all will also be on the prior console, with no initial first party exclusives. On the other hand, the note in the Bloomberg article leaves things perfectly open to a 'normal' next-gen launch for PS5 - a smattering of next-gen exclusives, with mostly cross gen third party games.
Yeah, I agree with that read of it. In terms of prognosticating, I think that if it was business as usual on that front there'd be no reason to point it out to allay fears of a pricey console to stakeholders. I personally will be surprised if there's more than one or two games that are PS5 exclusives.