Sony Is Struggling With PlayStation 5 Price Due to Costly Parts

Microsoft just dropped a price bomb for the upcoming X.

Sony will likely have to price their next console accordingly.

https://www.theverge.com/2020/9/9/21428714/xbox-series-x-price-release-date-preorder-all-access

We don't know how much of a bomb it is, though. It could be that Sony was hoping to sell the PS5 for $599 and will have to take a bath; it could be that Sony was already planning to sell for $499 and either doesn't have to change a thing or will undercut Microsoft by $50. The two companies were clearly playing chicken on pricing, so I suspect both were worried they might be more expensive.
 
normally Sony is the one undercutting MS on console pricing...just like Nvidia surprised most people with their Ampere pricing, MS just did the same with the new console...let's see what Sony's response is
 
MS taking a big loss on each console sold. Sony is probably going to do $400/$500 for digital/Disc. It will be all about the games and that is something MS is lacking in a big way.
 
Financing a console.....smart
People already do it through Fingerhut and other rent to own places. People that are used to buying from those places are going to eat that up. What's live per month $10 add in $25 for a console they would have paid more at a rent to own and they can justify it being less than the iphone they have per month.
 
People already do it through Fingerhut and other rent to own places. People that are used to buying from those places are going to eat that up. What's live per month $10 add in $25 for a console they would have paid more at a rent to own and they can justify it being less than the iphone they have per month.

You should have seen Fingerhut in their hey day before the interwebs. Their default/bad credit write offs were above 33%.
 
You should have seen Fingerhut in their hey day before the interwebs. Their default/bad credit write offs were above 33%.
Lol, sadly I've seen family members buy from them. I was given the chance to pick something out for my bday when I was young and actually said no after seeing the messed up prices. Raised by my mom she taught the value of money and saving versus owing someone for a toy.
 
Financing a console.....smart
I mean, from what i can see you save just about $20 total using their finance offers IF you planned on getting gamepass+gold anyways. And since they arn't charging you interest its no different than if you were to just throw $35/month into an account to buy one anyways. Thats how I saved up for my next gen console, i have just been putting $25/cheque into a separate account since $25 isnt noticeable to me and makes it easier to afford large purchases.
 
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how are they able to keep costs the same as the last generation of consoles??...they are using more expensive components....take a loss on the hardware but make it up with the software (games) and PS Plus etc...no wonder they are going to start charging $70 for games
 
how are they able to keep costs the same as the last generation of consoles??...they are using more expensive components....take a loss on the hardware but make it up with the software (games) and PS Plus etc...no wonder they are going to start charging $70 for games

Well I assume it's because #1. MSFT has way more money than Sony does as a company. #2. MSFT has a different direction they are going for gaming than Sony does. Which is why probably don't care about taking a loss on each console.
 
Well I assume it's because #1. MSFT has way more money than Sony does as a company. #2. MSFT has a different direction they are going for gaming than Sony does. Which is why probably don't care about taking a loss on each console.

Sony is most likely still going to win this upcoming generation...exclusives are way more important then the hardware
 
My PS3 disc drive is starting to go, so PS5 here I come, need a new bluray player.
 
Sony is most likely still going to win this upcoming generation...exclusives are way more important then the hardware

It depends. Xbox is about selling you a game pass with access to 100's if not 1000's of games. Sony is into selling 1st party/exclusive games.

This is why they are selling a $299 version. They are trying to get you into the ecosystem of game pass.

Don't get me wrong I plan to get a PS5 over an Xbox. But that is because I can get the Xbox game pass on my PC.
 
I think it's a smart play. Having a steady stream of subscriptions is probably more profitable than selling the hardware at cost and getting a small royalty on each game.

And once people start using the subscription, they will likely get used to it and keep it, even after the 2 year contract ends.
 
I think it's a smart play. Having a steady stream of subscriptions is probably more profitable than selling the hardware at cost and getting a small royalty on each game.

And once people start using the subscription, they will likely get used to it and keep it, even after the 2 year contract ends.

Not only that, but I would rather waste $9.99 a month to try out a new game to find out I dont like it. Then pre-ordering a game to find out its trash (Anthem).
 
Not only that, but I would rather waste $9.99 a month to try out a new game to find out I dont like it. Then pre-ordering a game to find out its trash (Anthem).
This!
I've had Xbox Game Pass in my PC for some months (bought in a promo for $5/month) and there's something really nice about playing and enjoying games that I otherwise would not buy.
The freedom of trying new games and genres without a purchase commitment has been a bit of fresh air for my gaming experience.
 
I've had Xbox Game Pass in my PC for some months (bought in a promo for $5/month) and there's something really nice about playing and enjoying games that I otherwise would not buy.
The freedom of trying new games and genres without a purchase commitment has been a bit of fresh air for my gaming experience.

Game Pass PC is getting a price hike next week- now $10 a month

https://www.pcgamer.com/xbox-game-pass-for-pc-exits-beta-next-week-and-the-price-is-going-up/
 
It depends. Xbox is about selling you a game pass with access to 100's if not 1000's of games. Sony is into selling 1st party/exclusive games.

This is why they are selling a $299 version. They are trying to get you into the ecosystem of game pass.

Don't get me wrong I plan to get a PS5 over an Xbox. But that is because I can get the Xbox game pass on my PC.

This is what a lot of people just don't understand in the "console wars". Microsoft is selling subs like mad. Azure subs, Office subs, Visual Studio subs, Xbox Games Pass, Game Pass PC, and so on. They have SO MANY SUBS.

Microsoft isn't playing the same game as Sony. Simple as that.
 
Sony is most likely still going to win this upcoming generation...exclusives are way more important then the hardware

Exclusive games are nice and can sell well, but it's less important than exclusive content or exclusive advertising. Sony's exclusives are not the biggest selling titles on their platforms, multiplatform games are. COD, Madden etc. Sony associated their console with those brands and it sold systems (along with other good moves). The 360 had very few great 1st part exclusives of note, really only Halo and Gears, but it was THE platform because it was tied to the big brands. Price helped a lot, for both systems. If MS puts down the money and starts buying up exclusive content or advertising agreements they can put a lot of pressure on Sony. MS needs a good 1st party lineup to help their system, but in order to "win" they MUST get people to mentally link their system with the big games they, and their friends, want to play.
 
Exclusive games are nice and can sell well, but it's less important than exclusive content or exclusive advertising. Sony's exclusives are not the biggest selling titles on their platforms, multiplatform games are. COD, Madden etc. Sony associated their console with those brands and it sold systems (along with other good moves). The 360 had very few great 1st part exclusives of note, really only Halo and Gears, but it was THE platform because it was tied to the big brands. Price helped a lot, for both systems. If MS puts down the money and starts buying up exclusive content or advertising agreements they can put a lot of pressure on Sony. MS needs a good 1st party lineup to help their system, but in order to "win" they MUST get people to mentally link their system with the big games they, and their friends, want to play.

I don't think many people associate the PS platform with Maddon or CoD or AC etc...the consoles are associated with the exclusive titles in their library- Bloodborne, God of War, Spier Man, Last of Us etc...multiplatform games are just that- able to be played on a wide variety of platforms...they are not associated with any 1 system...if all consoles play most of the same games then what is the differentiator?- playing with your friends and the exclusives
 
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I don't think many people associate the PS platform with Maddon or CoD or AC etc...the consoles are associated with the exclusive titles in their library- Bloodborne, God of War, Spier Man, Last of Us etc...if all consoles play most of the same games then what is the differentiator?- playing with your friends
And Xbox Series X/S customers will in many cases be able to play with their PC based friends.
 
My best guesstimate is that sony goes with $450 & $550 or $400 & $500 with PS5 digital & regular respectively

But as Paul Tassi says below, the price may not matter. PS5 will sellout at whatever price it launches. Sony can always discount price later

fully expecting it to be hard to find PS5, Xbox Series S and Series X this fall. The “winner” will be whoever can make the most consoles, and meet demand. Because demand is going to be overwhelming.

PS5 in particular will sell out at $500 or $600, it won’t matter.

It may start to matter down the road once early adopters have their consoles and the long game of the generation begins. Long term, yes, I can see a sustained $600 price being damaging to Sony, but I imagine it would not stay that high that long.

https://www.forbes.com/sites/paultassi/2020/09/10/so-what-if-the-ps5-costs-600-now/amp/
 
Sony is most likely still going to win this upcoming generation...exclusives are way more important then the hardware
Neither Sony or Microsoft will win this generation. This is the death of the game console. COV19, PC Gaming, and a failed economy will kill off consoles. If they do start charging $70 for a game you can expect piracy to run rampant as well. I can see services like Xbox Game Pass become popular, much like Netflix did when movies costed too much for most people. I can see Sony eventually making their own store on PC with a monthly service like Xbox Game Pass.

The freedom of trying new games and genres without a purchase commitment has been a bit of fresh air for my gaming experience.
It's like piracy but with a monthly fee.
 
This is what a lot of people just don't understand in the "console wars". Microsoft is selling subs like mad. Azure subs, Office subs, Visual Studio subs, Xbox Games Pass, Game Pass PC, and so on. They have SO MANY SUBS.

Microsoft isn't playing the same game as Sony. Simple as that.

I'm so tired of subscription-based anything. The worst part is how all the consoles moved to subscription model for multiplayer and are now in the process of doing so for games.

It makes all of this pricing feel like a joke to me. The Series S is $299 says MS? What about when they start pushing the "must-play" AAA exclusives via Xbox Games Pass Ultimate. This is the endgame for MS and once that finally happens it will be $14.99 per month for users. What if you want the privilege of playing these games online via Xbox Live - another $9.99.

$299 plus *only* $14.99 month in perpetuity doesn't feel like much of a deal to me.


Edit: Wasn't aware that Game Pass Ultimate also includes Live Gold features - updated the comment above
 
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Neither Sony or Microsoft will win this generation. This is the death of the game console. COV19, PC Gaming, and a failed economy will kill off consoles. If they do start charging $70 for a game you can expect piracy to run rampant as well. I can see services like Xbox Game Pass become popular, much like Netflix did when movies costed too much for most people. I can see Sony eventually making their own store on PC with a monthly service like Xbox Game Pass.


It's like piracy but with a monthly fee.

Have your crazy predictions ever been right?
 
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I don't think many people associate the PS platform with Maddon or CoD or AC etc...the consoles are associated with the exclusive titles in their library- Bloodborne, God of War, Spier Man, Last of Us etc...multiplatform games are just that- able to be played on a wide variety of platforms...they are not associated with any 1 system...if all consoles play most of the same games then what is the differentiator?- playing with your friends and the exclusives

You have to remember that no one reading gaming news, following forums like this, etc are the average consumer. The average consumer sees things like "exclusive content on x system" or ads that heavily focus a big game on a single console and in their minds it links that system to that game. It makes people think "if I want to play this game, I need to get this system". Why else do you think Sony and MS spend so much money on advertising partnerships with major 3rd parties? Why else do you think they spend 10s of millions on buying exclusivity deals that include things like timed exclusive content, exclusive characters, etc for big games? It is all to get people to think that in order to play a game, they need to get it on a specific system. If multi-plat titles didn't matter Sony wouldn't have spent fuck tons of money over the last generation buying timed exclusivity stuff for COD, Destiny, Avengers, etc.
 
I'm so tired of subscription-based anything. The worst part is how all the consoles moved to subscription model for multiplayer and are now in the process of doing so for games.

It makes all of this pricing feel like a joke to me. The Series S is $299 says MS? What about when they start pushing the "must-play" AAA exclusives via Xbox Games Pass Ultimate. This is the endgame for MS and once that finally happens it will be $14.99 per month for users. What if you want the privilege of playing these games online via Xbox Live - another $9.99.

$299 plus *only* $24.99 /month in perpetuity doesn't feel like much of a deal to me.

Then don't buy the $299 Xbox S, and just use your PC ;).
 
I'm so tired of subscription-based anything. The worst part is how all the consoles moved to subscription model for multiplayer and are now in the process of doing so for games.

It makes all of this pricing feel like a joke to me. The Series S is $299 says MS? What about when they start pushing the "must-play" AAA exclusives via Xbox Games Pass Ultimate. This is the endgame for MS and once that finally happens it will be $14.99 per month for users. What if you want the privilege of playing these games online via Xbox Live - another $9.99.

$299 plus *only* $24.99 /month in perpetuity doesn't feel like much of a deal to me.

Game Pass Ultimate includes Gold. Also, there is zero chance they're going to have AAA games go Game Pass exclusive. At least not this generation.
 
Game Pass Ultimate includes Gold. Also, there is zero chance they're going to have AAA games go Game Pass exclusive. At least not this generation.

Ah, wasn't aware of that. Game Pass Ultimate is a little more reasonable in that case.

I think we will see it happen this console generation though, people have paid up for MMOs in the past so why not "normal" AAA games as well? I'm definitely not advocating for it, I despise that idea, but I can see how it would appeal to console makers. You just need a large enough base of subscribers on Game Pass to normalize the monthly fee before you drop the hammer and put exclusive games there. Give it 1-2 years.
 
Ah, wasn't aware of that. Game Pass Ultimate is a little more reasonable in that case.

I think we will see it happen this console generation though, people have paid up for MMOs in the past so why not "normal" AAA games as well? I'm definitely not advocating for it, I despise that idea, but I can see how it would appeal to console makers. You just need a large enough base of subscribers on Game Pass to normalize the monthly fee before you drop the hammer and put exclusive games there. Give it 1-2 years.

Retail and standard digital sales are still too important. As much as MS wants to push Game Pass, there is no way they're making back all the money spent on AAA development from those subs just yet.
 
PlayStation 5 Price Tag Reportedly Slashed by Sony to Match up With Xbox Series X and S

We’ve heard all sorts of rumors that Sony is struggling to keep the price of the PS5 down due to expensive components like its cutting-edge solid-state drive, so should we be bracing ourselves?...perhaps not, per a new report from the usually-reliable folks at Gamereactor

According to their sources, the price point Sony originally had in mind for the PS5 was “considerably” higher than the $300/$500 Microsoft settled on for their new consoles...thankfully, Sony has since chopped the price of the PS5 to bring it in line with the competition...specifically, the disc-less PS5 will now reportedly cost $400 and the version with a disc drive will cost $500...

https://www.gamereactor.eu/source-playstation-5-to-adjust-plans-in-response-xbox-series-x-pricing/
 
We’ve heard all sorts of rumors that Sony is struggling to keep the price of the PS5 down due to expensive components like its cutting-edge solid-state drive, so should we be bracing ourselves?...perhaps not, per a new report from the usually-reliable folks at Gamereactor

I don't really see PS5 costing more than XBSX to build. Both are expensive.

I am sure Sony was hoping MS was going to charge $599 and Sony would match them and eek out a small margin. But MS which has a LOT more money, chose the (near) Zero Margin route and kind of Forces Sony down the same path.
 
PlayStation 5 Price Tag Reportedly Slashed by Sony to Match up With Xbox Series X and S

We’ve heard all sorts of rumors that Sony is struggling to keep the price of the PS5 down due to expensive components like its cutting-edge solid-state drive, so should we be bracing ourselves?...perhaps not, per a new report from the usually-reliable folks at Gamereactor

According to their sources, the price point Sony originally had in mind for the PS5 was “considerably” higher than the $300/$500 Microsoft settled on for their new consoles...thankfully, Sony has since chopped the price of the PS5 to bring it in line with the competition...specifically, the disc-less PS5 will now reportedly cost $400 and the version with a disc drive will cost $500...

https://www.gamereactor.eu/source-playstation-5-to-adjust-plans-in-response-xbox-series-x-pricing/

If true, that would definitely make things interesting. Though, I have to wonder exactly how much money Sony is going to be eating with each sale at those price points.
 
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