• Ever wanted an RSS feed of all your favorite gaming news sites? Go check out our new Gaming Headlines feed! Read more about it here.
  • We have made minor adjustments to how the search bar works on ResetEra. You can read about the changes here.

Puroresu_kid

Banned
Oct 28, 2017
9,465
Sony will eat a loss, the only question is how far they are willing to go.

Supposedly they had an almost 300 loss on the PS3 (+ - 800 BOM, sold at 499 and 599), and at that time the Playstation wasn't as integral to their business as it is now.

That was just economically silly. That should never have been allowed to happen.

They should never have built a console which was that expensive.
 

Hellshy

Member
Nov 5, 2017
1,172
It's depressing to know that Sony's marketing department probably checks these boards to gauge how consumers would accept a higher price point and they find threads full of people like "I hope I can give Sony more money!"

It's a video game enthusiast forum, I would hope their marketing department is smart enough to distinguish the differences of what this forum is willing to pay vs the average consumer that will make up the bulk of ps5 users.
 

Alandring

Banned
Feb 2, 2018
1,841
Switzerland
It's depressing to know that Sony's marketing department probably checks these boards to gauge how consumers would accept a higher price point and they find threads full of people like "I hope I can give Sony more money!"
If Sony launch their console with a loss on each unit, it wouldn't be good for us either. They would have less money to invest on exclusives and/or they will need to find a way to recover the money lost (for example in increasing the price of the PlayStation +).

Every company wants to make as much profits as possible. That's fine. But I prefer that Sony makes this money with amazing single players AAA than with PlayStation + or MTX on Fortnite.
 
Last edited:
Feb 10, 2018
17,534
I Sony launch their console with a loss on each unit, it wouldn't be good for us either. They would have less money to invest on exclusives and/or they will need to find a way to recover the money lost (for example in increasing the price of the PlayStation +).

Every company wants to make as much profits as possible. That's fine. But I prefer that Sony makes this money with amazing single players AAA than with PlayStation + or MTX on Fortnite.

I really don't think they will take a big loss, I think they will rather sell at cost and rely on the quality of there games to sell there platform.

If it turns out like this

Lockhart 5tflop $299
Xsx 12.18tflop $499
Ps5 13.4tflop $499

I think Sony would do very well, with the quality of there first parties and "best in class" visuals. They might lose some sales because of Lockhart but still do very well.
 

Deleted member 44129

User requested account closure
Banned
May 29, 2018
7,690
The reports seem to be that the Xbox is going to be a bit more powerful than the PS5....Sooo.... Wouldn't that mean that the Xbox would be even more expensive to make??
 

Rocco

Banned
Oct 27, 2017
1,330
Texas
I really don't think they will take a big loss, I think they will rather sell at cost and rely on the quality of there games to sell there platform.

If it turns out like this

Lockhart 5tflop $299
Xsx 12.18tflop $499
Ps5 13.4tflop $499

I think Sony would do very well, with the quality of there first parties and "best in class" visuals. They might lose some sales because of Lockhart but still do very well.

Where are you getting that 13.4 tflops for the PS5?
 

DieH@rd

Member
Oct 26, 2017
10,568
I think that Sony [and MS] will eat a big loss [$100] only if they are aware that console will become profitable shortly after launch.

We already know that launch users spend over $1500 during the entire gen, they are the most enthusiastic "core" users who will spend a lot on software/subscriptions.
 

Alandring

Banned
Feb 2, 2018
1,841
Switzerland
I really don't think they will take a big loss, I think they will rather sell at cost and rely on the quality of there games to sell there platform.

If it turns out like this

Lockhart 5tflop $299
Xsx 12.18tflop $499
Ps5 13.4tflop $499

I think Sony would do very well, with the quality of there first parties and "best in class" visuals. They might lose some sales because of Lockhart but still do very well.
I really doubt that PlayStation 5 will be more poweful than Xbox Series X. The whole point of Xbox Series X is for Microsoft to have the most powerful console.

Also, I think that a $200 price difference would be really huge. Could PlayStation 5 still profitable? Sure, but I think it would affect sales. In my opinion, PlayStation 5 should be at much $100 more expensive than Xbox Series S.
 
Last edited:
Feb 10, 2018
17,534
I really doubt that PlayStation 5 will be more powefull than Xbox Series X. The whole point of Xbox Series X is for Microsoft to have the most powerful console.

Also, I think that a $200 price difference would be really huge. Could PlayStation 5 still profitable? Sure, but I think it would affect sales. In my opinion, PlayStation 5 should be at much $100 more expensive than Xbox Series S.

I don't think so, I think Sony want to go the premium route, they want to capitalise on there "event like" first party games. They want to differeate themselves from Xbox's "anything for anyone" approach.
 
Last edited:

Kcannon

Member
Oct 30, 2017
5,663
In the next decade, digital will probably make up about 90% of all game sales in the west so having them playing and buying those games On your platform is essential as the profits will be enormous. I say eat up whatever cost it is and get the consumers to your platform ASAP.

Problem is if a shortage happens, especially with smartphones taking priority for certain parts.
 

Alandring

Banned
Feb 2, 2018
1,841
Switzerland
I don't think so, I think Sony want to go the premium route, they want to capitalise on there "even like" first party games. They want to differeate themselves from Xbox's "anything for anyone" approach.
If the article from Bloomberg is correct (PlayStation 5 has a BOM of $450 and it was more than expected for Sony) and if ZhugeEX was right when he said that Xbox Series X BOM will be above than PlayStation 5 (even if it is slighty), I wouldn't call PlayStation 5 a "premium console."

In my opinion, Sony's approach is "PlayStation 5 for everyone." They want a great product, a true next-gen console, but not at any price. If PlayStation 5 has really a BOM of $450, I think it's more likely that the console will launch at $449 than $499. $499 for a console that have a BOM of $450 seems very greedy, more than for PlayStation 4 at launch.
 

Deleted member 5028

User requested account closure
Banned
Oct 25, 2017
9,724
If the article from Bloomberg is correct (PlayStation 5 has a BOM of $450 and it was more than expected for Sony) and if ZhugeEX was right when he said that Xbox Series X BOM will be above than PlayStation 5 (even if it is slighty), I wouldn't call PlayStation 5 a "premium console."

In my opinion, Sony's approach is "PlayStation 5 for everyone." They want a great product, a true next-gen console, but not at any price. If PlayStation 5 has really a BOM of $450, I think it's more likely that the console will launch at $449 than $499. $499 for a console that have a BOM of $450 seems very greedy, more than for PlayStation 4 at launch.
That 450 does not include cost of manufacturing. It's literally the cost of the items inside the device. You think they want to build that for free?
 
Feb 10, 2018
17,534
If the article from Bloomberg is correct (PlayStation 5 has a BOM of $450 and it was more than expected for Sony) and if ZhugeEX was right when he said that Xbox Series X BOM will be above than PlayStation 5 (even if it is slighty), I wouldn't call PlayStation 5 a "premium console."

In my opinion, Sony's approach is "PlayStation 5 for everyone." They want a great product, a true next-gen console, but not at any price. If PlayStation 5 has really a BOM of $450, I think it's more likely that the console will launch at $449 than $499. $499 for a console that have a BOM of $450 seems very greedy, more than for PlayStation 4 at launch.

Remember that BOM does not account for shipping, packaging, retailer cut and r + D.
When it's its all said and done the PS5 will cost Sony more like $500 per unit possibly more.
 

Alandring

Banned
Feb 2, 2018
1,841
Switzerland
That 450 does not include cost of manufacturing. It's literally the cost of the items inside the device. You think they want to build that for free?
Remember that BOM does not account for shipping, packaging, retailer cut and r + D.
When it's its all said and done the PS5 will cost Sony more like $500 per unit possibly more.
From the article of Bloomberg:
The PS4, released in 2013 at a retail price of $399, was estimated by IHS Markit to cost $381 to manufacture. With the $450 unit cost and a similar gross margin, the PlayStation 5's retail price would have to be at least $470.

The equivalent of the price of the PlayStation 4 would be $470 for the PlayStation 5. $450 would be more agressive and Sony would take a bigger loss on each unit. $500 would be less agressive, the console would probably be profitable at launch (or really close to be), unlike PlayStation 4. In a world where digital and subscriptions are so important, what is the most likely, in your opinion?

I think the price target by Sony has always been $399, but maybe it won't be possible this time.
 

fiendcode

Member
Oct 26, 2017
24,926
aren't a lot of non-North American shows bigger than E3? E3 might have the most eyes on it, but more people attend other shows. that might be better since you can get the public's hands on the games
Not a lot, E3 is still somewhat large for attendance (60-70k since going public). Globally there are many tradeshows that are much larger like Tokyo Game Show (250k+), Paris Games Week (300k+), Brazil Game Show (300k+) and Gamescom (350k+) but in NA only the PAX shows are somewhat larger (70k+). A big part of that is that public tickets for E3 are still limited (they're expanding to 25k for 2020) and it's still mostly press. In terms of press passes it's still the largest tradeshow too iirc, which is probably why it's viewership metrics still far surpass larger shows like TGS or Gamescom.

edit: misread, thought you said a lot in NA. 😓
 
Last edited:
Feb 10, 2018
17,534
From the article of Bloomberg:


The equivalent of the price of the PlayStation 4 would be $470 for the PlayStation 5. $450 would be more agressive and Sony would take a bigger loss on each unit. $500 would be less agressive, the console would probably be profitable at launch (or really close to be), unlike PlayStation 4. In a world where digital and subscriptions are so important, what is the most likely, in your opinion?

I think the price target by Sony has always been $399, but maybe it won't be possible this time.

If its more power or very very close in power to the XsX I think it will be the same price, if its weaker it will be $449
 

DrDeckard

Banned
Oct 25, 2017
8,109
UK
i bet ms are exploring how long it is until they announce the price, or do they do an AMD and announce at like 50-100 dollars more expensive then drop the price after sony announces...interesting business.
 

Manmademan

Election Thread Watcher
Member
Aug 6, 2018
16,019
That was just economically silly. That should never have been allowed to happen.

They should never have built a console which was that expensive.

The PS3 was expensive because Sony was using it as a trojan horse to get both Blu Ray and the Cell Processor viable for a larger audience.

The Cell was intended to be a mass market processor used in everything from desktops to televisions, and Toshiba actually did produce a Cell-TV. For various reasons this strategy didn't pan out.

Blu Ray won its format war handily vs. HD-DVD in no small part to inclusion in the PS3, but Sony didn't anticipate digital distribution (i.e. Netflix) obliterating the market for ownership of discs as fast as it did.

If either one of these plans had worked out as intended, the price of the ps3 would have been justified. Sony (and its partners) just didn't anticipate both failing.
 

AegonSnake

Banned
Oct 25, 2017
9,566
tenor.gif
 
Aug 23, 2018
2,376
LOL - do you understand that a shortage effects everyone? Lockhart's main differentiation wasn't the SSD but a cut down GPU.

A 499 PS5 means-

599 Series X (if they were targeting 499)

399 Lockhart (if they were targeting 299)



The victory laps being run because Sony has to increase price misses the point that Microsoft will also suffer the same sensitivities. There are no winners here unless you own stock in micron.

Victory laps? You ok bud? We have no idea if Lockhart is office let alone the specs or what shortage is affecting what.
 

Apathy

Member
Oct 25, 2017
11,992
For a company that said they don't care that much about consoles same since they want to be more about services, ms is not going to take a huge hit to come in at a low price.
 

PeterLegend

Alt Account
Banned
Oct 29, 2017
180
I've already got two jobs so I'm ready to jump into the next generation.

With at least two games at launch and another controller I'll be spending over $700 USD after taxes, might need an extra year of PS+ too lol.
 

Raiden

Member
Nov 6, 2017
2,922
I never understood people needing that price to be 399 for an 8 year console generation, but then go on spending 1000 on a phone nearly every year.

Not all of you, not most of you even I'm guessing. But still..
 

Dizastah

Member
Oct 25, 2017
6,124
I never understood people needing that price to be 399 for an 8 year console generation, but then go on spending 1000 on a phone nearly every year.

Not all of you, not most of you even I'm guessing. But still..
I can afford $999 or more.......but I know I am not in the majority. In the end, a price that satisfies everyone is better for everyone. The console sells well and is better supported.
I'm cool with $499 btw
 

MajesticSoup

Banned
Feb 22, 2019
1,935
I never understood people needing that price to be 399 for an 8 year console generation, but then go on spending 1000 on a phone nearly every year.

Not all of you, not most of you even I'm guessing. But still..
With that logic then companies should just make the consoles $4000. After all they last 4x as long as the average phone upgrade.
 

Raiden

Member
Nov 6, 2017
2,922
I can afford $999 or more.......but I know I am not in the majority. In the end, a price that satisfies everyone is better for everyone. The console sells well and is better supported.
I'm cool with $499 btw
Yes, you're right. It's why I moved to PC gaming mostly, it's probably unfair wanting to have the
With that logic then companies should just make the consoles $4000. After all they last 4x as long as the average phone upgrade.
Fair enough.

But you have to aknowledge that consoles have been 399 for nearly two decades, and games 60 for three.

Manufacturers sell consoles with a loss (well, not Nintendo) and publishers/developers mtx the hell out of games to find other ways of revenue.

Not saying this is a good reason to up the price, but to me.. It would make sense.

But I'm of the opinion that I would gladly pay 80 for a complete game that does not try to win my money with skins and whatnot.

Same for consoles, i'll gladly pay an extra 200 for some tech upgrades.

Edit: I messed up my quotes..
 

BlockABoots

Member
Oct 27, 2017
1,548
This thing will be $475-500 all day long, people thinking they will stick with last gens price point will be disappointed!. Last gen used out of date mobile based tech, this time round there using more modern desktop based hardware
 

Taurus

Banned
Jun 15, 2018
733
I really don't think they will take a big loss, I think they will rather sell at cost and rely on the quality of there games to sell there platform.

If it turns out like this

Lockhart 5tflop $299
Xsx 12.18tflop $499
Ps5 13.4tflop $499

I think Sony would do very well, with the quality of there first parties and "best in class" visuals. They might lose some sales because of Lockhart but still do very well.
This is just wishful thinking and doesn't make any sense. Why would XsX be less powerful and still be priced the same as PS5? Is there a Kinect included again or what?
 
Feb 10, 2018
17,534
This is just wishful thinking and doesn't make any sense. Why would XsX be less powerful and still be priced the same as PS5? Is there a Kinect included again or what?

The difference is about 10%, which won't cause a big price difference.
It could just be a case that the ps5 has 100mhz higher clocked gpu.
And its not wishful thinking my prediction is based on multiple insiders.