Alexx

Member
Oct 27, 2017
237
I think you're forgetting that was 14 years ago, under completely different leadership, in a different market, when they had a 150>20 lead on it's direct competition, and it wiped out all the profits on the 2 most successful consoles ever at the time. It's hard to put into context how much of a financial disaster the PS3 was.
Sony wasn't fine with that at all. That's why we got the much better designed PS4.

If PS3 didn't massively under perform in sales, then I'm sure Sony would have been fine with taking a huge loss on the PS3. Similarly, Sony definitely expects the PS5 to outsell XSX so again, they will be fine taking a significant loss at launch. This is nothing new tbh.
 
Oct 25, 2017
9,205
Like 25% of Americans will be unemployed by the end of April. IDK Man I'd think the lowest price the better.

Ideally sure, but I'm happy with $500 console over another PS4 that has glaring weakness from the outset. You have to pay for performance. No one could have predicted the pandemic so that is just unfortunate bad timing. I don't think 25 percent will be unemployed in April 2021 or even Fall 2020. Just gotta get through it like any other business. And luckily for Sony they have an extremely populat console that many already own to lean on until the economy improves.
 

Eggman

Banned
Apr 16, 2018
557
If PS3 didn't massively under perform in sales, then I'm sure Sony would have been fine with taking a huge loss on the PS3. Similarly, Sony definitely expects the PS5 to outsell XSX so again, they will be fine taking a significant loss at launch. This is nothing new tbh.


This and PSN generating so much more revenue than it did during the PS3 era. PSN generating more revenue than the entire Xbox division will have Sony wanting people to get console to buy more things on PSN.
 
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metalslimer

Avenger
Oct 25, 2017
9,575
People are still thinking that a system with the SSD of the PS5 and high end GPU can easily get to 399? These systems are pretty obviously going to be closer to 499
 
Oct 25, 2017
9,205
I think Sony's target is $399. How much the loss is at release will be what they eat and they're probably fine with that. I think people forget that Sony was fine with taking a ~$300 loss on PS3 at launch.

No, they weren't. That was a disaster due to PS3 component pricing being out of control.

They were fine if actually being on the verge of bankruptcy is OK. They are not taking a bath on hardware ever again.
 

Lowrys

Member
Oct 25, 2017
12,724
London
If there's no production issues, then limiting the number produced seems stupid. Scalpers will have a field day and the people who really want one will inevitably end up losing out or paying over the odds. Sony is going to sell as many as they can make. So disappointing.
 

Aladan

Member
Dec 23, 2019
499
If PS3 didn't massively under perform in sales, then I'm sure Sony would have been fine with taking a huge loss on the PS3. Similarly, Sony definitely expects the PS5 to outsell XSX so again, they will be fine taking a significant loss at launch. This is nothing new tbh.

There is no company in the world that will be happy to take a loss on their product. If they would be able to take more money they would sell their console like Apple or Samsung sell their phones.
 
Oct 25, 2017
9,205
$500 PS5 alongside $300 PS4 Pro seems realistic.

$200 base model would be a big seller. Not sure how the Pro will fare.

There is no company in the world that will be happy to take a loss on their product. If they would be able to take more money they would sell their console like Apple or Samsung sell their phones.

The days of console makers being OK as loss leaders is long gone. They make take a small loss, but they absolutely don't want to.
 

Gay Bowser

Member
Oct 30, 2017
17,802
Wonder if there's any kind of thermal magic Sony could work to create a PS4 mini.

If they redesign it to use cheaper components like a top-loading drive, they'd probably use a cooler-running die-shrunk SoC too.

I don't think it will be, like, PStwo small (there's a hard drive in there now), but it could maybe approach the size of the original PlayStation.
 

Gay Bowser

Member
Oct 30, 2017
17,802
At this point I'd image the hard drive must be the most expensive component on the current PS4.

It's worth noting that no console with a hard drive since the original Xbox has had an official MSRP below $269, which was as low as the HDD-equipped PS3 ever got. (The 12GB flash-based PS3 was $219. The PS3 MSRP never hit $199).

I'm not assuming that "cheaper PS4" means "$199." It would be nice to see them be that aggressive, but I could also see them dropping it to $249.
 

BitsandBytes

Member
Dec 16, 2017
4,586
$150 for the NVMes in these system is not far fetched at all

How would you break down the cost here? I mean in Sony's case it seems the SSD is comprised of a in-house custom controller plus (12 x 64GiB?) outsourced NAND chips. A lot of the cost would be sunk in R&D I would think? How much for a supply of 12 chips? How much in R&D cost to Sony?

I personally just think the estimates for components are always priced way too high in these discussions by most.

Also I assume if Lockhart is a thing and has the same SSD as the XSX then it stands to reason it won't be costing MS anything close to $150 in BOM alone.....$50 would be far closer the mark IMO.

They are 1TB M.2's are they not given their speeds? I paid $215 or something AUD for my one last year and its an Adata model. I very much doubt the hard drive is cheap as it's now a core part to both consoles running more efficiently.

I don't think you can compare a retail product.
 

Aladan

Member
Dec 23, 2019
499
How would you break down the cost here? I mean in Sony's case it seems the SSD is comprised of a in-house custom controller plus (12 x 64GiB?) outsourced NAND chips. A lot of the cost would be sunk in R&D I would think? How much for a supply of 12 chips? How much in R&D cost to Sony?

I personally just think the estimates for components are always priced way too high in these discussions by most.

Also I assume if Lockhart is a thing and has the same SSD as the XSX then it stands to reason it won't be costing MS anything close to $150 in BOM alone.....$50 would be far closer the mark IMO.



I don't think you can compare a retail product.

You are right. There is no way to compare the retail consumer product to the custom console solution. Only a tear down will give us information about the individual parts that are used and what the costs are in the industry (not consumer!).
 

Phellps

Member
Oct 25, 2017
10,972
The lowest I can see these consoles going for is $449 and that's with Sony and Microsoft willing to take loss from each sale to establish a bigger install base. But that's only if the recession really impacts demand.
I'm fully expecting these consoles to be $499, though. I'll be really surprised if it's below that.
 

Dajanksta

Member
Oct 28, 2017
823
I better be able to get one at launch if there are any good launch games. I just did amazon last time and it was there on the day of release.
 

Deleted member 22750

Oct 28, 2017
13,267
No, it doesn't. There are not going to be a lot available. If they price it at $600 THEY WILL SELL OUT. Early adopters don't care. They'd drop $1,000 to get one. This could be a soft launch for Sony and then in 2021 they do a big launch at a lower price.
yeah....this makes zero sense

why not price them at 2,000 at that logic
 

Gay Bowser

Member
Oct 30, 2017
17,802
If there's no production issues, then limiting the number produced seems stupid. Scalpers will have a field day and the people who really want one will inevitably end up losing out or paying over the odds. Sony is going to sell as many as they can make. So disappointing.

Every product ever has a "limited" number produced. They anticipate how much production output they need and plan production accordingly. It was the same with the PS4.

Contrary to what enthusiasts on the internet say, there actually is not unlimited demand for a $500 games console during an economic crisis, and it actually is possible for Sony to over-produce these things.
 

gothmog

Member
Oct 28, 2017
2,434
NY
I still think it will be $399. Even though they could rake in the money at launch on it, dropping the price too early would be seen as a sign of weakness and do longer term damage to the brand than just launching at a reasonable price. When they announce the price I am sure they'll announce immediate price drops for the PS4 models to go along with it. $199/$299/$399 would be sweet.
 

Lowrys

Member
Oct 25, 2017
12,724
London
Every product ever has a "limited" number produced. They anticipate how much production output they need and plan production accordingly. It was the same with the PS4.

Contrary to what enthusiasts on the internet say, there actually is not unlimited demand for a $500 games console during an economic crisis, and it actually is possible for Sony to over-produce these things.
Obviously there is always a limited number produced. I'm just surprised they're reducing it. I think we can all predict that whatever number they make, it'll sell out and be hard to obtain for months, so it makes little sense to me to reduce the number from their original plan.
 

Gay Bowser

Member
Oct 30, 2017
17,802
I still think it will be $399. Even though they could rake in the money at launch on it, dropping the price too early would be seen as a sign of weakness and do longer term damage to the brand than just launching at a reasonable price. When they announce the price I am sure they'll announce immediate price drops for the PS4 models to go along with it. $199/$299/$399 would be sweet.

Who exactly would be buying PS4 Pros in this scenario, where the PS5 was $100 more? The people who want to pay extra for a premium PS4 experience but not pay for a next-gen PS5-level experience? Seems like a very small market.

PS4 Pro is going to go away once PS5 hits, if not before.
 

Altair

Member
Jan 11, 2018
7,901
Well that $400 price tag so many people were sure of is out the window. Seems like $500 may be stretching it a bit too. Could be $550. A price tag that high could make Lockhart really attractive if it comes in at $299 or $399.
 
Oct 25, 2017
9,205
I still think it will be $399. Even though they could rake in the money at launch on it, dropping the price too early would be seen as a sign of weakness and do longer term damage to the brand than just launching at a reasonable price. When they announce the price I am sure they'll announce immediate price drops for the PS4 models to go along with it. $199/$299/$399 would be sweet.

I think you are confused about the pricing. They won't be raking in any money at $499. They would still be losing or break even at best. At $399 they are possibly taking a massive loss of $100 more.

Well that $400 price tag so many people were sure of is out the window. Seems like $500 may be stretching it a bit too. Could be $550. A price tag that high could make Lockhart really attractive if it comes in at $299 or $399.

Nah $550 is stretching it just as much as $399. Not happening.
 

Sems4arsenal

Member
Apr 7, 2019
3,635
I feel both consoles launching at $499 is the expectation at this point.

Maybe throw in a few months of Plus, and one game.
 

Altair

Member
Jan 11, 2018
7,901
I think you are confused about the pricing. They won't be raking in any money at $499. They would still be losing or break even at best. At $399 they are possibly taking a massive loss of $100 more.



Nah $550 is stretching it just as much as $399. Not happening.

I mean the article states it could land anywhere between $499 and $549, so I don't think that's stretching it at all. I think $499 is where it's going to land, but I wouldn't be remotely surprised if it hits $549.
 

gothmog

Member
Oct 28, 2017
2,434
NY
Who exactly would be buying PS4 Pros in this scenario, where the PS5 was $100 more? The people who want to pay extra for a premium PS4 experience but not pay for a next-gen PS5-level experience? Seems like a very small market.

PS4 Pro is going to go away once PS5 hits, if not before.
I mean the PS3 was still sold/manufactured for 3 years after the PS4 went on sale. The PS4 Pro is also a 4K machine which has value. Also, if the Lockhart becomes real Sony could play some pricing games with the slim and pro to try and squeeze it out. I'm not sure how much inventory Sony keeps on hand, but I am sure they will play it by ear until it stops making them money.
 

Neonep

Member
Oct 25, 2017
5,823
Yes the PS5 will be only $100 more than a PS4 pro.
Y'all need to let $399 go
Yeah, I don't know why people keep bringing that number up. It makes no sense how it can be that much unless they get the cheapest parts and cut corners and nobody wants that. They are either delusional, broke, and/or cheap.
 

Gay Bowser

Member
Oct 30, 2017
17,802
I mean the PS3 was still sold/manufactured for 3 years after the PS4 went on sale. The PS4 Pro is also a 4K machine which has value.

The point of keeping a console around after its successor launches is to target value-conscious buyers, which they will do with the PS4. The people who are buying a PS4 in 2H 2020 and beyond are not the people who care about the value a 4K machine provides.
 
Oct 25, 2017
9,205
I mean the article states it could land anywhere between $499 and $549, so I don't think that's stretching it at all. I think $499 is where it's going to land, but I wouldn't be remotely surprised if it hits $549.

I would be shocked. That would mean they refused to take any loss at all. Taking a bath is one thing, but eating a smaller loss makes sense. Also that article is not gospel, but provides a good guideline for discussion.
 

Altair

Member
Jan 11, 2018
7,901
I would be shocked. That would mean they refused to take any loss at all. Taking a bath is one thing, but eating a smaller loss makes sense. Also that article is not gospel, but provides a good guideline for discussion.

We're in the midst of a pandemic. I could see why they wouldn't want to take a loss; and if MS is looking to price at around $499 or $549 as well then it could be the right move. I never said it was gospel, but rather that it provides a good enough reason as to why $549 isn't as outlandish as you might think.
 
Dec 31, 2017
1,430
I still think it will be $399. Even though they could rake in the money at launch on it, dropping the price too early would be seen as a sign of weakness and do longer term damage to the brand than just launching at a reasonable price. When they announce the price I am sure they'll announce immediate price drops for the PS4 models to go along with it. $199/$299/$399 would be sweet.
There's no way PS5 is released and is 100$ more than a few years old PS4 Pro. PS5 will be 499$, which is actually a very reasonable price for what the new consoles will have in terms of hardware.