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

MistahShowtime

MistahShowtime

Member
May 1, 2018
209
DrDeckard said:
This is a great point...but what if they literally cant build them. Theres a world wide shortage on nand and dram with prices expected to raise by upto 40 percent through the remainder of 2020.

Sony and ms wont have a problem selling 399 next gen boxes but they may not be able to build enough at the rate that's required. Plus we dont know what's happening with Corona.
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It's certainly difficult to determine if they'll be able to manufacture enough consoles at this point. With the parts shortage and virus outbreak, not to mention no actual confirmation on most specs for either console, a whole lot is up in the air right now. It seems like everyone is taking the wait and see approach, including Sony and MS. For all we know, both could end up skipping the holiday season, though that's highly doubtful. Nintendo has proven it can work with the Switch. It would also give them time to have a healthy amount of units ready for launch. Might even boost the specs just slightly with that small window of time. I'm not saying it will happen, but there is the possibility of it becoming a necessity with all the extenuating circumstances both companies are facing with these launches.
 
BrickArts295

BrickArts295

GOTY Tracking Thread Master
Member
Oct 26, 2017
13,742
$399/$449 will probably be Sony's panic button in case Phil goes crazy and decides to give 3-6 month ultimate subscriptions with every new Xbox Series X sold at launch aka free Halo Infinite with your new Xbox (heck its not even that crazy, I'm almost convinced that is what they'll do).
I'm on board with $499, just dont skimp on the cooling.
 
Yerffej

Yerffej

Prophet of Regret
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Oct 25, 2017
23,496
Fallout-NL said:
No,



This is indeed what I meant.

Actually hoping it'll be a bit more expensive this time around for that reason.
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I wasn't referring to you. I was referring to the original tweet, where I think both of you posters talking about high end, misunderstood his sentence. He meant we aren't getting what will be considered high end this time around...for 399.
 
Fallout-NL

Fallout-NL

Member
Oct 30, 2017
6,701
Yerffej said:
I wasn't referring to you. I was referring to the original tweet, where I think both of you posters talking about high end, misunderstood his sentence. He meant we aren't getting what will be considered high end this time around...for 399.
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Ah, now I see it. It can be read both ways. If that's what he meant though, then I agree.
 
Yerffej

Yerffej

Prophet of Regret
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Oct 25, 2017
23,496
Fallout-NL said:
Ah, now I see it. It can be read both ways. If that's what he meant though, then I agree.
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Yeah, I just figure he's pretty savvy. I would think he knew what a piece of crap, even for 2013, that CPU was. So I wouldn't assume he'd call it high end. Just seems to make more sense for this upcoming gen because these companies couldn't get the consoles any beefier without paying for it through the nose and I'm not sure that would be worth it for them.
 
Iwao

Iwao

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Oct 25, 2017
11,781
Isn't a $499 PS5 what a lot of us were expecting anyway given what tech they're looking at putting in this thing? The article makes it sound like even $450 is unexpected. Anyway, CNET had interesting things to report about what the PS4's price was going to be, and we saw $399 in the end, so I'll take this one with a grain of salt.
 
pg2g

pg2g

Member
Dec 18, 2018
4,794
Herb Alpert said:
Thanks for sharing this.
Honest question cause I'm no expert at all, but how could they sell something 399 if the cost of components alone is 450? It doesn't take into account r&d, marketing, logistics or retailer margins... It seems like they would take a huge loss, wouldn't they ?
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Likely not a huge loss. I remember teasing that retailers make effectively no profit on console sales (at least at launch). They do make money off of the games and accessories though. The manufacturer can take a loss on the above and recoup on games, subscriptions, and accessories where profit margins are much higher.
 
Martinski

Martinski

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Jan 15, 2019
8,420
Göteborg
This thing will cost like an equivalent to 800 dollars or more in Sweden due to our currency being in the toilet plus the chemicals tax on electronics plus the anti piracy tax / fee on electronics... smh..

The PS3 released at 7000 SEK back in 2006 so. And in 2006 our currency was quite strong v the dollar compared to now.

Gonna have to look at options of importing from Germany or such instead when it comes to electronics in the future.
 
tapedeck

tapedeck

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Oct 28, 2017
7,976
A lot of people in here claiming with absolute certainty this shortage means Series X will be $599..I don't see that at all.

I think MS knows $499 is the limit if they want to be competitive in console sales (which Phil clearly stated they do). If they have to eat a few more bucks to stay at $499 I think they probably will.
 
III-V

III-V

Member
Oct 25, 2017
18,827
Lephotographeur said:
LOL

Now with that one out of the way, as per windowscentral



www.windowscentral.com

Sony allegedly 'struggling' to keep PlayStation 5 price down. What's it mean for Xbox Series X?

Short supply and high prices of DRAM may force Sony to raise prices, but Microsoft may not have the same problem. Still, market uncertainties exist, and questions remain.
www.windowscentral.com www.windowscentral.com

With this said, there are possibilities that this affects Sony more than MS. So perhaps being ultra sure that both will be affected is a bit "High Horse:y"
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Not at all, the WC article is 100% garbage IMO. MS is using flash-based memory (SRAM). Sony will be using Flash-based memory (SRAM). There is no way to achieve these speeds with DRAM.

So if DRAM price affects Sony, DRAM price will equally affect MS. Because what does DRAM have to do with a damn thing anyway?

If they are discussing use in DDR6, and not as storage (which is NOT what is implied by saying cellphones and the WC article) then as such, both Sony and MS will be using DDR6.

The Bloomberg article is trash as well, cobbled together from old news, and nebulous sources. Its just not credible under scrutiny.
 
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Elios83

Member
Oct 28, 2017
976
This article is just speculation based on the statements Sony made during their fiscal results conference a couple of weeks ago.
The author isn't adding anything factual, the BOM price is just a guess and things like DRAM prices going up because of smartphones having a sudden and unforeseen impact on the BOM do not quite add up. Sony has probably secured supply contracts to provide them with certain quantities of chips at a certain price months ago. Unless they're suddenly asking for more chips than anticipated and the suppliers are struggling to provide them with these extra chips so they're asking for more to renegotiate the contract, it's unlikely that these price fluctuations have an impact on well defined and already established supply contracts.

What Sony said during their fiscal results is that they haven't decided the final price and are looking at the marketplace to understand how much is going to cost them to price PS5 at the appropriate level.
That simpy means that different prices options are on the table and they are willing to take a loss on the hardware if necessary depending on what competition does.
And even here people are looking too much into it because it was just a way to divert questions that journalists were making about the price and PS5 in general. In the end it's obvious they have a plan and they will take their own decisions.
Also do people actually believe that if they are truly waiting for MS to announce their price...they would tell that to everyone?? Reminds me of when Kaz Hirai joked about not wanting to announce things first with PS4.


So unfortunately the waiting game continues :P
 
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DrDeckard

DrDeckard

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Oct 25, 2017
8,109
UK
Iwao said:
Isn't a $499 PS5 what a lot of us were expecting anyway given what tech they're looking at putting in this thing? The article makes it sound like even $450 is unexpected. Anyway, CNET had interesting things to report about what the PS4's price was going to be, and we saw $399 in the end, so I'll take this one with a grain of salt.
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I've always expected a 499 ps5. If it's less then happy days.

I could only see it being less, if the 9 tf thing is true.
 
Pryme

Pryme

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Aug 23, 2018
8,164
Elios83 said:
This article is just speculation based on the statements Sony made during their fiscal results conference a couple of weeks ago.
The author isn't adding anything factual, the BOM price is just a guess and things like DRAM prices going up because of smartphones having a sudden and unforeseen impact on the BOM do not quite add up. Sony has probably secured supply contracts to provide them with certain quantities of chips at a certain price months ago. Unless they're suddenly asking for more chips than anticipated and the suppliers are struggling to provide them with these extra chips so they're asking for more to renegotiate the contract, it's unlikely that these price fluctuations have an impact on well defined and already established supply contracts.

What Sony said during their fiscal results is that they haven't decided the final price and are looking at the marketplace to understand how much is going to cost them to price PS5 at the appropriate level.
That simpy means that different prices options are on the table and they are willing to take a loss on the hardware if necessary depending on what competition does.
And even here people are looking too much into it because it was just a way to divert questions that journalists were making about the price and PS5 in general. In the end it's obvious they have a plan and they will take their own decisions.
Also do people actually believe that if they are truly waiting for MS to announce their price...they would tell that to everyone?? Reminds me of when Kaz Hirai joked about not wanting to announce things first with PS4.


So unfortunately the waiting game continues :P
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The article - and the BOM price - is based on insider information. It's clearly detailed in the OP.
You should read the OP.
 
RoninStrife

RoninStrife

Banned
Oct 27, 2017
4,002
The more I read and re-read this.. the more I wonder how much of it is true and how much is Pachter-method guesses.
It says something, but says nothing also. In fact, it could be absolutely true or absolutely false and we will never know any different.
If it were true.. I wish it would've said "Sony is paying a bit more cooling than last gen, their using a vapor chamber this time" or the V shape is in part because of a dual heatpipe design being integrated into the retail console., or maybe say Sony is manufacturing the SSD components via Samsung , or whatever. The author has carefully crafted a piece that locks him into nothing definitive.

So.. that in itself is interesting.
 
Weltall Zero

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Madrid

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Elios83 said:
This article is just speculation based on the statements Sony made during their fiscal results conference a couple of weeks ago.
The author isn't adding anything factual, the BOM price is just a guess and things like DRAM prices going up because of smartphones having a sudden and unforeseen impact on the BOM do not quite add up. Sony has probably secured supply contracts to provide them with certain quantities of chips at a certain price months ago. Unless they're suddenly asking for more chips than anticipated and the suppliers are struggling to provide them with these extra chips so they're asking for more to renegotiate the contract, it's unlikely that these price fluctuations have an impact on well defined and already established supply contracts.

What Sony said during their fiscal results is that they haven't decided the final price and are looking at the marketplace to understand how much is going to cost them to price PS5 at the appropriate level.
That simpy means that different prices options are on the table and they are willing to take a loss on the hardware if necessary depending on what competition does.
And even here people are looking too much into it because it was just a way to divert questions that journalists were making about the price and PS5 in general. In the end it's obvious they have a plan and they will take their own decisions.
Also do people actually believe that if they are truly waiting for MS to announce their price...they would tell that to everyone?? Reminds me of when Kaz Hirai joked about not wanting to announce things first with PS4.


So unfortunately the waiting game continues :P
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Bloomberg are not a rumour and speculation mill.
 
Iron Eddie

Iron Eddie

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Nov 25, 2019
9,812
Microsoft should not give Sony an inch this time with pricing. If Sony wants to take lossses that's on them, it should not be reactionary to what Microsoft prices the X Series at.
 
Noble

Noble

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Oct 27, 2017
1,680
thuway said:
This news should also effect both Series X and Lockhart.

1.Series X if they were targeting 499 will now be 599.


2. Lockhart if they were targeting 299 will now be 399.



Component shortage isn't exclusive to one company.
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It really depends on the providers and lots of other factors.
 
Anthony Hopkins

Anthony Hopkins

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Feb 10, 2018
17,534
Walken said:
This is why Microsoft should not announce pricing before Sony this time. Sounds to me by Sony's limited talk about pricing that they were indeed trying to get the PS5 at $399 but likely won't be able to now.
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They both want to wait for each others hand, it's just a matter which one is willing to play this game the longest.
 
DocH1X1

DocH1X1

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Apr 16, 2019
1,133
If the DF assessment is correct from the leak of a 9.2tf ps5 and 12 tf XSX then sony HAS to announce after microsoft. They cannot launch a weaker console at the same price. However if Microsoft can keep their price at 499 and sony has to go lower then it's a garuntee that sony are loosing money (BOM of 450) and loosing money on a weaker console which I have to assume was not in their planning.

At this point in time I think the one scenario that terrifies sony is if xbox comes in more powerful at 499.
 
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Dierce

Dierce

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Oct 27, 2017
3,993
DigSCCP said:
They don't have to.
But they will be in a very awkward position if they don't.
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What if they do it halfway. "Xbox Series X, $50 less than the PS5"

589478518182903809.png
 
fiendcode

fiendcode

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Oct 26, 2017
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DocH1X1 said:
At this point in time I think the one scenario that terrifies sony is if xbox comes in more powerful at 499.
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Given all we know I think that's probably the more likely outcome. It seems to me like Sony wanted $399 for (a slightly weaker) PS5 but factors beyond their control are making that untenable unless they take a too sizable loss. So now they'll have to slightly undercut (maybe only $50, which significantly blunts the psychological impact) or have price parity.

The real nightmare scenario for Sony would be if MS simply decided to can Lockhart and take a bath on a $399 Series X to drive core userbase upfront. I don't think that's too likely but it's not impossible and is probably a realistic worst case for PlayStation in the west.
 
Iron Eddie

Iron Eddie

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Nov 25, 2019
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DigSCCP said:
They don't have to.
But they will be in a very awkward position if they don't.
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I would be very surpised if Sony waited until then but it also wouldn't surprise me if Sony does indeed uses that tactic. If that's the case Microsoft needs to be cuttroat and price the Series X at a loss.

fiendcode said:
Given all we know I think that's probably the more likely outcome. It seems to me like Sony wanted $399 for (a slightly weaker) PS5 but factors beyond their control are making that untenable unless they take a too sizable loss. So now they'll have to slightly undercut (maybe only $50, which significantly blunts the psychological impact) or have price parity.

The real nightmare scenario for Sony would be if MS simply decided to can Lockhart and take a bath on a $399 Series X to drive core userbase upfront. I don't think that's too likely but it's not impossible and is probably a realistic worst case for PlayStation in the west.
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Having two Xbox systems out at launch is definitely a scenario that helps Microsoft. They can have a less powerful system but cheaper than the PS5 (maybe $349) and a system that will be more powerful than the PS5 at maybe $549.
 
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