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Jeff Grubb rumor: MS is taking a loss on both series x and s with bigger loss on the s.

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Marano

Marano

Member
Mar 30, 2018
4,893
Rio de Janeiro


Yeah I figured these consoles cost a lot more than what theyll be selling for, they want to make money on software sales and subscriptions, especially with the s, since every transaction there will be digital so theyll get a bigger cut, makes sense they are taking a bigger loss on that one.

Curious if Sony is also willing to take a loss on ps5(especially digital edition following the same logic), and what nintendo does to compete with the new switch and how they price it.

Thoughts?
 
Phoenix Down

Phoenix Down

Banned
Oct 29, 2017
739
Game pass is going to be huge next gen and could push MS to sell 100mil consoles . They will be fine .
 
Jeffram

Jeffram

Member
Oct 29, 2017
3,943
I assumed they would take more of a loss on X since X owners are likely to spend more on software and generate more profits down the line.

EDIT. Does Jeff Grubb actually know anything on the business side of things? leaking event dates and software reveals that hundred of game devs might know about is different than knowing the BOM of a system.
 
Xevross

Xevross

Member
Oct 28, 2017
2,049
I don't think he has any extra inside info on this and its extremely obvious this is the case anyway. Pretty much every console ever has been sold at a loss at launch, PS5 will be no different.
 
fracas

fracas

Member
Oct 27, 2017
4,684
Series S is straight up the best launch console I've seen imo

Sony needs to match at $500 but idk if they can
 
Slackerchan

Slackerchan

Member
Oct 25, 2017
1,412
Austin, TX
Call me crazy but isn't it the case that Nintendo, Microsoft and Sony have always taken a loss on their console launches? They'll do fine: between manufacturing process refinements and the eventual cost of parts going down, they'll make back what they lost.
 
Relix

Relix

Member
Oct 25, 2017
6,239
Attrition battle then? I think MS has deeper pockets than Sony in that case. Tough for Sony but they should be alright.
 
Rygar 8Bit

Rygar 8Bit

Member
Oct 25, 2017
15,978
Site-15
Well yeah, the hardware in these things are pretty good the graphics cards are about on par with a 2070 and those SSDs are super fast and would cost hundreds alone on PC. I'm surprised they didn't go with $600 for the X.
 
Weeaboom

Weeaboom

Banned
Jan 25, 2018
262
It only shows that Microsoft is going full steam ahead with XBox and Gamepass. Outside of the Halo Infinite debacle, they are in a very good position to succeed this gen.
 
Betty

Betty

Banned
Oct 25, 2017
17,604
Nintendo don't need to compete, no one's touching them as long as they continue the handheld/home console hybrid.

Sony is another matter. Depends on how deep they want to take a loss
 
Atheerios

Atheerios

Member
Oct 27, 2017
7,125
Yeah, that's why I can't see Sony matching those prices. SSD tech Sony is using is even more expensive, they can't get below $399.
 
LavaBadger

LavaBadger

Member
Nov 14, 2017
4,994
Will be interesting to see whether Sony is going to go back to selling at a loss after a gen of not having to. Edit: I guess people are saying it was profitable with one purchase, which is basically breaking even.

If they want to compete, they certainly need to be willing to.

FlikBlueLightning said:
Expected. What consoles have launched in the black? I really don't know.
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A lot of Nintendo consoles.
 
ElephantShell

ElephantShell

10,000,000
Member
Oct 25, 2017
9,943
ImaginaShawn said:
No, ps4 was pure profit day one.
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I think the consensus at the time was that the PS4 became profitable for Sony once the user purchased one game or one year of Plus, was not sold at a profit on its own. Could be wrong there though.

Edit: I see this has been pointed out a few times haha, not trying to dogpile.
 
ps3ud0

ps3ud0

Banned
Oct 27, 2017
1,906
That's excellent news, will have to force Sony to do the same (I'm a broken record). I have no problem affecting these massive companies bottom lines considering how many games and services will go through their stores or indirectly into their business.
Phoenix Down said:
Game pass is going to be huge next gen and could push MS to sell 100mil consoles . They will be fine .
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Extremely unlikely to near impossible

ps3ud0 8)
 
Zachary_Games

Zachary_Games

Member
Jul 31, 2020
2,985
This is super obvious.

The biggest surprise isn't the fact that they are taking a greater loss on XSS than XSX, it is the fact that MS green lit this strategy considering their history of launching consoles.

And of course Sony will be launching their consoles at a launch. Every PS console has released at a loss, in order to pursue a loss leader strategy.
 

ShivUK

Member
Nov 2, 2017
96
Jeffram said:
I assumed they would take more of a loss on X since X owners are likely to spend more on software and generate more profits down the line.

EDIT. Does Jeff Grubb actually know anything on the business side of things? leaking event dates and software reveals that hundred of game devs might know about is different than knowing the BOM of a system.
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Digital sales mean more profit and no "lost sales" to the second hand market.
 
Lord Fanny

Lord Fanny

Member
Apr 25, 2020
26,015
Slackerchan said:
Call me crazy but isn't it the case that Nintendo, Microsoft and Sony have always taken a loss on their console launches? They'll do fine: between manufacturing process refinements and the eventual cost of parts going down, they'll make back what they lost.
Click to expand...
Click to shrink...

I always thought Nintendo was known for not taking losses with their consoles. May be wrong, though.
 
Gay Bowser

Gay Bowser

Member
Oct 30, 2017
17,754
The Series S definitely seems very aggressively priced, especially on All Access.

I'm very interested to see what Sony does to compete.
 
TubaZef

TubaZef

Member
Oct 28, 2017
3,570
Brazil
And that's why I think the PS5 will be more expensive, don't know if Sony can afford that. Hopefully they learned from the PS3.

Jeffram said:
I assumed they would take more of a loss on X since X owners are likely to spend more on software and generate more profits down the line.
Click to expand...
Click to shrink...

I think it's the opposite. S owners have no option but to buy digital software which gives MS a bigger profit as it has no cut from stores.
 
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