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Sony PlayStation 5 Dilemma: might be too expensive
With an AMD powered Playstation 5 many people are looking forward to the new console release. Sony, however, is fighting the high price, as it is an expensive machine to build.
The production costs are not only raised by expensive DRAM and NAND memories, but also by the cooling system, it is indicated that the current production price of the Playstation 5 is already around $450, reports bloomberg:
PlayStation 5’s retail price would have to be at least $470. That would be a hard sell to consumers, considering Sony’s most expensive machine now is the $399.99 PS4 Pro and is often discounted, according to Macquarie Capital analyst Damian Thong.. The company’s biggest headache is ensuring a reliable supply of DRAM and NAND flash memory, with both in high demand as smartphone makers gear up for fifth-generation devices, according to people familiar with Sony’s operations.
“We must keep PlayStation 5’s bill of materials under our control and we need to make the correct number of units in the initial production,” Sony’s Chief Financial Officer Hiroki Totoki said at an earnings briefing earlier this month.
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Glottiz
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#5761173 Posted on: 02/17/2020 03:35 PM
Microsoft announces super expensive Xbox Series X and no one in the media even bothers questioning price. Everyone is just salivating at possible performance targets and specifications.
Meanwhile Sony announces PS5 and all articles for the last two months or so have been negative and various levels of concern-trolls.
Microsoft announces super expensive Xbox Series X and no one in the media even bothers questioning price. Everyone is just salivating at possible performance targets and specifications.
Meanwhile Sony announces PS5 and all articles for the last two months or so have been negative and various levels of concern-trolls.
Netherwind
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#5761176 Posted on: 02/17/2020 03:45 PM
You do have a point that there is a lot of people out there who don't give a rats ass about resolution or frame rates and just want to play games. For those people I can definitely imagine that 300€ is max for a console no matter the brand.
True but people expect consoles to be cheap otherwise they won´t buy it. Personally i normally wait for consoles to drop below 300€, only then i buy them.
You do have a point that there is a lot of people out there who don't give a rats ass about resolution or frame rates and just want to play games. For those people I can definitely imagine that 300€ is max for a console no matter the brand.
H83
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Posts: 3890
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#5761187 Posted on: 02/17/2020 04:48 PM
And there I always thought that the first few batches / years of consoles are sold at the company's expanse to have the platform grow in the first place, earning money via the games sold.
Later on, with hardware refreshes, they grow more profitable, even earning money with the consoles themselves.
And at the end of a cycle, when the hardware is argueably old (and the fab node the chips are done it too, probably), they get cheap anyway, and the company makes the most profit.
It used to be that way but now things have changed. Sony and MS no longer want to lose huge sums of money on hardware specially after they saw Nintendo making money since the Wii despite being much weaker. Also many seem to be waiting for the commercial explosion of gaming streaming at any moment and if that happens then there will be a chance that the sales of consoles will implode, making it impossible for MS and Sony to recoup the money they lost initially. And we can´t forget that right now consoles are nothing more than PCs with proprietary OSes to run games because creating custom hardware was too expensive...
Bottom line, companies no longer want to lose money on hardware like they used to do. One idea some people have been suggesting is selling consoles cheaper with PS Plus/Xbox Gold contracts for a few years, makes sense and it could work.
You do have a point that there is a lot of people out there who don't give a rats ass about resolution or frame rates and just want to play games. For those people I can definitely imagine that 300€ is max for a console no matter the brand.
Personally i think pricing is extremely important for consoles. One of the key advantages of consoles over PCs is that they are much cheaper and if they lose this advantage i could see many people getting cold feet over buying one. To make things worse the current consoles are going to play lots of games of the next ones becuase the HW is basically the same, only weaker. So many will ask themselfes, is it worth to buy a new console only for better graphics???
I´ve just bought an cheap Xbox and i don´t intend to buy the new one anytime soon... As for the next PS, i´m probably going to get it but i´m gonna wait until it comes close to the 300€ mark.
And there I always thought that the first few batches / years of consoles are sold at the company's expanse to have the platform grow in the first place, earning money via the games sold.
Later on, with hardware refreshes, they grow more profitable, even earning money with the consoles themselves.
And at the end of a cycle, when the hardware is argueably old (and the fab node the chips are done it too, probably), they get cheap anyway, and the company makes the most profit.
It used to be that way but now things have changed. Sony and MS no longer want to lose huge sums of money on hardware specially after they saw Nintendo making money since the Wii despite being much weaker. Also many seem to be waiting for the commercial explosion of gaming streaming at any moment and if that happens then there will be a chance that the sales of consoles will implode, making it impossible for MS and Sony to recoup the money they lost initially. And we can´t forget that right now consoles are nothing more than PCs with proprietary OSes to run games because creating custom hardware was too expensive...
Bottom line, companies no longer want to lose money on hardware like they used to do. One idea some people have been suggesting is selling consoles cheaper with PS Plus/Xbox Gold contracts for a few years, makes sense and it could work.
You do have a point that there is a lot of people out there who don't give a rats ass about resolution or frame rates and just want to play games. For those people I can definitely imagine that 300€ is max for a console no matter the brand.
Personally i think pricing is extremely important for consoles. One of the key advantages of consoles over PCs is that they are much cheaper and if they lose this advantage i could see many people getting cold feet over buying one. To make things worse the current consoles are going to play lots of games of the next ones becuase the HW is basically the same, only weaker. So many will ask themselfes, is it worth to buy a new console only for better graphics???
I´ve just bought an cheap Xbox and i don´t intend to buy the new one anytime soon... As for the next PS, i´m probably going to get it but i´m gonna wait until it comes close to the 300€ mark.
DocStr4ngelove
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Joined: 2020-01-16
#5761188 Posted on: 02/17/2020 04:50 PM
If ppl want 4k@60hz you could have that right now, games just need 50% less details & fx like grass, volumetric smoke or shadows of distant objects.
It's only about what the focus is - better IQ or 60hz really. You don't necessarily need a PS5 for that. And any future game could bring the PS5 down to 30hz with an overload of details.
It's just pure marketing imo.
If ppl want 4k@60hz you could have that right now, games just need 50% less details & fx like grass, volumetric smoke or shadows of distant objects.
It's only about what the focus is - better IQ or 60hz really. You don't necessarily need a PS5 for that. And any future game could bring the PS5 down to 30hz with an overload of details.
It's just pure marketing imo.
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Afaik the 360 outsold the ps3 overall but to throw another curve ball in there, neither won that generation in terms of unit sales. The Wii crushed it in that regard but still that didn't really help Nintendo in the succeeding generation.
I recognize that Nintendo are a bit of an anomaly in the market so I won't mention them anymore except to point out that a significantly lower price point can lead to massive sales. If the Xbox can undercut the Ps5 by $100 we could easily a shift back to Microsoft.
As for the larger user base argument I'm not convinced that it particularly matters to anyone except fanboys, (That may actually be a significant factor but I have no idea) because the vast majority of big AAA games those users are playing are usually cross platform.
I agree with you that the 4k buzzword features probably won't be a deciding factor for the majority of buyers.
I'll admit I don't have any skin in this fight, I haven't purchased a console since the 360 and have no intention of doing so, though if the switch gets a decent price cut I may pick up one to replace my poor aging wii and add portable gaming as an option.