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Shoot

Member
Oct 25, 2017
4,547
www.videogameschronicle.com

Sony refuses to be drawn on whether it could raise the price of PS5 | VGC

UPDATE: Sony has increased the PS5 price in Europe, Japan and parts of North America…
In April Sony raised the Japanese prices of a range of consumer electronics products including some cameras, Blu-ray players, home theatre systems, headphones and speakers.

It said the price revisions were being made in light of the ongoing semiconductor shortage and other external factors that have caused the cost of raw materials, manufacturing and distribution to increase.
During its first quarter earnings call on Friday, Sony was asked whether it was considering increasing the PS5 price point in the face of similar market pressures.

"About a potential price increase for the PS5, at this point in time there is nothing specific I can share with you about prices", came the response from executive deputy president and chief financial officer Hiroki Totoki (transcribed by VGC).
In recent months analysts have forecast that products that rely on semiconductors are set to become more expensive as chip makers increase their prices and the companies that buy them in turn pass on the costs to consumers.

Earlier this week Reality Labs announced plans to increase the price of its Meta Quest 2 VR headset by $100, a decision it attributed to rising manufacturing and shipping costs.

In May, Forrester analyst Glenn O'Donnell told CNBC he expected chip prices to rise about 10-15% in the year ahead.

"Chipmakers face their own increasing supply issues that are exacerbated by the Ukraine war … and demand remains high while supply remains constrained," he said. "Energy prices are also on a tear, including electricity. Chipmaking requires an enormous amount of electric power."

In turn, he forecast that manufacturers would increase the price of PCs, cars, toys, consumer electronics, appliances, and many other products.

"Margins are already tight on such products, so they have no choice but to raise prices," O'Donnell said.
 
Oct 27, 2017
20,761
They're not going to say, all console makers wouldn't say it but I don't think any will. Meta can raise the price coz vr is a much smaller market whereas Sony wants to sell 18-20M per year, which is like what; double the total VR market? Meta knows VR enthusiasts who would consider quest would buy itanywa
 

Tailzo

Member
Oct 27, 2017
7,941
I kinda expect that given what's happening in the world. Food is starting to be more expensive, gas prices are rising, inflation in many countries….
 

monketron

Member
Oct 27, 2017
2,857
Either Sony eat the price increase or they release a revision of the console that's cheaper to make (but priced the same). I can't see them wanting to raise the price, even if they're selling out every console they make still.
 

FriendlyNPC

Member
Oct 27, 2017
1,601
The only way this is gonna work out for them is if MS also increases the Series X price and I very much doubt MS is gonna do that.

There is no justification for the PS5 being more expensive than the (more powerful) Series X.
 

entremet

You wouldn't toast a NES cartridge
Member
Oct 26, 2017
60,118
They could do it and get away with it, but Sony was spooked by 599 and have been very price sensitive since.

I predict that there will no major price cuts for most of the lifetime of the PS5. This tracks with the ps4, which never hit 250 or lower.
 
Dec 9, 2018
21,071
New Jersey
I mean they initially sold the system at a loss and their primary source of revenue in gaming comes from software, not hardware. So I don't see them hiking the price for the PS5, but they won't drop it either.
 

nsilvias

Member
Oct 25, 2017
23,775
theyll probably just keep releasing revisions to cut costs ratger thanraise prices likw they did with the ps5s cooling system
 

Delusibeta

Prophet of Truth
Banned
Oct 26, 2017
5,648
Considering how they played chicken with Xbox on revealing the price of the thing first time round, I reckon they will hold off on any price increases until Xbox increases prices (which probably won't happen).
 

Deleted member 93062

Account closed at user request
Banned
Mar 4, 2021
24,767
They already did. HFW + PS5 bundle is $550. Wouldn't be surprised to see a 3 game bundle for like $600. They can force people to buy these bundled versions if they limit stock of the regular edition, hence people are stealthily paying more even if they didn't want the games.
 

TheAggroCraig

One Winged Slayer
Member
Nov 6, 2017
5,913
They're sitting in stock online for hours at $550, just keep producing those instead of "raising" the price.
 

vixolus

Prophet of Truth
Member
Sep 22, 2020
54,494
They prob wont change it. But I could see them making a revision that costs less to manufacture maybe with a new design to help offset costs. Or maybe take the Switch OLED route by increasing the cost of a new model they manufacture more and making it $550 but have 1TB of data or something to make it still have decent value.

Or just push the $550 software bundles as the new norm idk
 

Fisty

Member
Oct 25, 2017
20,222
Nah, most of those other devices don't have pathways for further monetization. Sony doesn't need to raise prices of consoles because they will make their money back 10x
 

neoak

Member
Oct 25, 2017
15,263
Consoles staying at their 2020 MSRP is already a discount due to inflation and costs.
 

0ptimusPayne

Member
Oct 27, 2017
5,750
It seems like those $550 FW bundles are popping up more than the standard $499 console anyway, but I could be wrong.
 

Will Law

Member
Feb 5, 2021
780
Maybe they will wait to see what kind of drop off Meta has this holiday with their price increase? I doubt it would happen though. With the Quest getting more expensive it's not like there is another option for consumers. If Sony raised their price that might turn more people on to the series s.
 

Det

Member
Jul 30, 2020
12,880
It's literally just a no comment response. No executive is going to say anything even with it staying the same price.
 

Ascenion

Prophet of Truth - One Winged Slayer
Member
Oct 25, 2017
10,100
Mecklenburg-Strelitz
I don't think it would be wise. I'm already expecting this to be the next less than 100 million gen for them as the recession advances. $500 already is looking steeper than it was in 2020.
 

Crumrin

Banned
Feb 27, 2020
2,270
A revision with cheaper parts is more likely than a price increase on the current model, I think.
 

bushmonkey

Member
Oct 29, 2017
5,604
They already did. HFW + PS5 bundle is $550. Wouldn't be surprised to see a 3 game bundle for like $600. They can force people to buy these bundled versions if they limit stock of the regular edition, hence people are stealthily paying more even if they didn't want the games.
This is the "smart" way of doing it.
 

Lord Error

Member
Oct 27, 2017
4,368
They could easily raise the price of the DE model by $50 and no one would bat an eye. It's pretty amazing that a full power console is being sold for $400; which is $100 bucks less than what you have to pay for a direct competitor, with only exclusion being the disc drive that few people seem to be using anyway on either machine.
 

Fisty

Member
Oct 25, 2017
20,222
You're talking about Pre-COVID times. 2022 ain't it.

? The digital attach rate is astronomical right now. Sony is making a killing on every console sold despite whatever they have lost or could lose on hardware. They don't have that luxury with blu-ray players and cameras
 
Oct 27, 2017
20,761
Also they said it was profitable per unit in mid 2021, showed a chart that indicated it would become even more profitable per unit as we went into late 2022 and they are shipping 18m this year and 20m Next year and you're able to find some ps5s in stock much longer than before.

I'm sure the shortage did mess with their costs for a while but it really seems like we're getting out of the woods on stuff like this
 

neoak

Member
Oct 25, 2017
15,263
A revision with cheaper parts is more likely than a price increase on the current model, I think.
Give up on PS5 Pro and release Slim model with cheaper parts.
What cheaper parts? They are still producing SoCs on the same node as 2020, and TSMC raised prices.

They are moving to 6n because TSMC is forcing them to, but that's going to cost a few million just to tape out. That's not real costs savings when the prices are higher than 2020.
 

NuclearCake

Banned
Oct 27, 2017
9,867
This is why it makes me laugh that people are still coping hard enough to think that there will be a Pro model for any console any time soon.
 
Oct 27, 2017
20,761
? The digital attach rate is astronomical right now. Sony is making a killing on every console sold despite whatever they have lost or could lose on hardware. They don't have that luxury with blu-ray players and cameras
That is a key point. They have to sell those at a profit coz they have no way to make profit guaranteed after the initial sale
 

JaseC64

Enlightened
Banned
Oct 25, 2017
11,008
Strong Island NY
The only way this is gonna work out for them is if MS also increases the Series X price and I very much doubt MS is gonna do that.

There is no justification for the PS5 being more expensive than the (more powerful) Series X.
PS5 and XBX are very similar and use the same or similar components that yes Sony could raise the price because they are having to pay more for the same components MS is buying for their console.

I doubt Sony would btw.
 

neoak

Member
Oct 25, 2017
15,263
? The digital attach rate is astronomical right now. Sony is making a killing on every console sold despite whatever they have lost or could lose on hardware. They don't have that luxury with blu-ray players and cameras
One could buy a digital, and play F2P games without spending a dime.

See: kids.
 
Oct 27, 2017
20,761
What cheaper parts? They are still producing SoCs on the same node as 2020, and TSMC raised prices.

They are moving to 6n because TSMC is forcing them to, but that's going to cost a few million just to tape out. That's not real costs savings when the prices are higher than 2020.
Dual sense costs probably have come down a lot. I'd guess closer to $30 at launch maybe $15-$20 now.

And RAM and SSD could've gotten cheaper. Judging by new MSRPs in comparable SSDs, which are sold at 2-3 times costs for profit, I'm guessing the ssd was like $100 or close to it at launch and is possibly 20-40% cheaper now or getting there for Sony
 

Ascenion

Prophet of Truth - One Winged Slayer
Member
Oct 25, 2017
10,100
Mecklenburg-Strelitz
They could easily raise the price of the DE model by $50 and no one would bat an eye. It's pretty amazing that a full power console is being sold for $400; which is $100 bucks less than what you have to pay for a direct competitor, with only exclusion being the disc drive that few people seem to be using anyway on either machine.
If anything they wouldn't touch the DE. Any money spent on games there is straight profit. You have to give people a reason to buy that system. The price difference is the reason. Otherwise the PS5 disc makes more sense.
 

arrado

Member
Jan 1, 2020
1,641
This is one of the reasons why I think they'll do a pro model sooner than later.
Use better RDNA tech that probably costs the same to make, and increase price by $50-100.

Offering a slightly better model for a higher price is easier to explain to consumers than just increasing the price, like Oculus did
 

t26

Avenger
Oct 27, 2017
4,559
They could do it and get away with it, but Sony was spooked by 599 and have been very price sensitive since.

I predict that there will no major price cuts for most of the lifetime of the PS5. This tracks with the ps4, which never hit 250 or lower.

PS4 was $199 for several Black Friday

www.youtube.com

Black Friday Week - Wonderland | PS4

Stay warm this Black Friday with a PS4 bundle and VR bundles.
 

neoak

Member
Oct 25, 2017
15,263
Dual sense costs probably have come down a lot. I'd guess closer to $30 at launch maybe $15-$20 now.

And RAM and SSD could've gotten cheaper. Judging by new MSRPs in comparable SSDs, which are sold at 2-3 times costs for profit, I'm guessing the ssd was like $100 or close to it at launch and is possibly 20-40% cheaper now or getting there for Sony
SSDs, yes. RAM maybe. Dual Sense, unsure unless we get a breakdown with supply chain cost increases.

This is one of the reasons why I think they'll do a pro model sooner than later.
Use better RDNA tech that probably costs the same to make, and increase price by $50-100.

Offering a slightly better model for a higher price is easier to explain to consumers than just increasing the price, like Oculus did
Lol you think 100 would cover what a "Pro" SoC would cost? Loooooool
 
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