Sony Is Struggling With PlayStation 5 Price Due to Costly Parts

SeymourGore

2[H]4U
Joined
Dec 12, 2008
Messages
3,016
Yeah, I can't see $699 either, unless MS went crazy and priced theirs that high.

Likely we won't know anything until whomever blinks first on pricing.
 

Nolan7689

[H]ard|Gawd
Joined
Jun 5, 2015
Messages
1,627
Calling it now, which ever console releases first comes with an NDA to not reveal pricing until the other reveals it. If you want it you go to the store and sign the NDA and buy it and read the receipt to find out the price.

At least that’s how it feels these two are treating things. At the very least it doesn’t feel like they’re in collusion for astronomical price fixing if they’re too busy trying to undercut.
 

vegeta535

Supreme [H]ardness
Joined
Jul 19, 2013
Messages
4,161
Calling it now, which ever console releases first comes with an NDA to not reveal pricing until the other reveals it. If you want it you go to the store and sign the NDA and buy it and read the receipt to find out the price.

At least that’s how it feels these two are treating things. At the very least it doesn’t feel like they’re in collusion for astronomical price fixing if they’re too busy trying to undercut.
It is not price fixing. Its them trying to win the next console generation with the lease amount of loss. I think the $500 price point is a loss for both companies. Sony probably hoping MS prices it at $600+ so they wont take a huge loss under cutting them. Sony could release the price at $500 first and MS could say fuck it and sell it for $400 with a huge hit in profits just to win. Sony wouldn't be able to undercut them.
 

Nolan7689

[H]ard|Gawd
Joined
Jun 5, 2015
Messages
1,627
It is not price fixing. Its them trying to win the next console generation with the lease amount of loss. I think the $500 price point is a loss for both companies. Sony probably hoping MS prices it at $600+ so they wont take a huge loss under cutting them. Sony could release the price at $500 first and MS could say fuck it and sell it for $400 with a huge hit in profits just to win. Sony wouldn't be able to undercut them.
Please re read what I wrote.....
 

cybereality

Supreme [H]ardness
Joined
Mar 22, 2008
Messages
5,665
It's going to be $600 at least.

If it were $400 or $500 I think they would have just said.
 

polonyc2

Fully [H]
Joined
Oct 25, 2004
Messages
17,803
$600 sounds like a good compromise...not cheap but not crazy expensive...when are console buyers going to realize that you can build a budget PC for around $800
 

Sickb0y

[H]ard|Gawd
Joined
Jan 20, 2005
Messages
2,009
699.99 for sure add the extra controller and 1 game plus CA taxes and you're looking at $900.00 😭
 

Red Falcon

[H]F Junkie
Joined
May 7, 2007
Messages
10,533
$600 sounds like a good compromise...not cheap but not crazy expensive...when are console buyers going to realize that you can build a budget PC for around $800
What a lot of individuals here are forgetting is that many people don't want to build systems - be it lack of knowledge, too much work, lack of time, etc. - many of them just want to get a console, connect it into their TV and Wi-Fi, sit down, and start playing games with minimal hassle; they aren't in it for the hardware, they are in it for the games, period.
Convenience and ease-of-use are both massive factors with the average gamer.

Now, for those like us, yes, that $800 custom PC with game mods and rich amounts of features, is far more logical and enticing, ergo, it gives us more value for the price for our interests and requirements.
Business is a major side of this that quite a few here are forgetting about, and Sony is no slouch when it comes to this aspect - if they were, they wouldn't have survived beyond the launch of the original PlayStation back in 1994.
 

cybereality

Supreme [H]ardness
Joined
Mar 22, 2008
Messages
5,665
I love PCs and PC gaming. I love that I can develop my own games on my computer, I can run Linux if I want, I can customize everything.

Consoles will probably always be locked down and never match PCs in brute strength. But I think the cost argument is weak.

I'm thinking the PS5 is going to be between $600 and 700. You're not building a machine for $700 even that would be close to a PS5 if you compare the same game.

The video card alone can cost $500 or more. It's not a great proposition. I mean, buy a PC for all of the good reasons: mods, emulators, freedom, etc. but not because it's cheap.
 

Derangel

Fully [H]
Joined
Jan 31, 2008
Messages
19,026
It's going to be $600 at least.

If it were $400 or $500 I think they would have just said.
I don’t know if they would. Sony and MS are basically playing a game of chicken when it comes to prices and release dates. Whichever jumps first is at a disadvantage as it gives the other a chance to respond. Until announcements are made it’s easy for them to make minor shifts to release date and pricing plans. I don’t think either are going to have a ton of major system sellers at launch (so far, Sony has the Spidy spin-off and MS has Halo Infinite) so they need every advantage they can get.
 

Brackle

Old Timer
Joined
Jun 19, 2003
Messages
7,408
I love PCs and PC gaming. I love that I can develop my own games on my computer, I can run Linux if I want, I can customize everything.

Consoles will probably always be locked down and never match PCs in brute strength. But I think the cost argument is weak.

I'm thinking the PS5 is going to be between $600 and 700. You're not building a machine for $700 even that would be close to a PS5 if you compare the same game.

The video card alone can cost $500 or more. It's not a great proposition. I mean, buy a PC for all of the good reasons: mods, emulators, freedom, etc. but not because it's cheap.
Well 99% of PC gamers already have a PC. So the only upgrade they would need to do is a GPU. Sure if someone wants to get into PC gaming they would need to fork over around $1000 to get into it. But, the lovely thing about PC's is that you would only need to upgrade the GPU if you are already a PC gamer. Which would be cheaper than the console in general.

Also, by the time the consoles come out Nvidia and AMD will have their new GPU's come up. Those will be more powerful than the current $500 GPU's we have today.

Just my 0.02c
 

ManofGod

[H]F Junkie
Joined
Oct 4, 2007
Messages
11,936
Well 99% of PC gamers already have a PC. So the only upgrade they would need to do is a GPU. Sure if someone wants to get into PC gaming they would need to fork over around $1000 to get into it. But, the lovely thing about PC's is that you would only need to upgrade the GPU if you are already a PC gamer. Which would be cheaper than the console in general.

Also, by the time the consoles come out Nvidia and AMD will have their new GPU's come up. Those will be more powerful than the current $500 GPU's we have today.

Just my 0.02c
LOL, and what does that other 1% of PC gamers game on, a potato? :D
 

KingGlade

Limp Gawd
Joined
Dec 15, 2016
Messages
147
The inclusion of the digital edition make me think they're going to price it at $499/599 respectively. I'll probably still buy it anyway, but I'll hold off on the XBOX if the PS5 is pricier than I prefer.
 

next-Jin

Supreme [H]ardness
Joined
Mar 29, 2006
Messages
6,412
I liked the one guys reply of 399.99 for the digital edition and 499.99 for the normal version. If you buy the all digital version that’s 7 years of PSN game purchases, PS+ and peripherals. They could sell it for a 60 dollar loss and be fine. Their future earnings report has them in the red for the next 2 years iirc.

BOM is 460 I think, so if we assume that was for the all digital version the 20 dollar Blu-ray drive puts it at 480 so it makes sense.
 

T4rd

Fully [H]
Joined
Apr 8, 2009
Messages
17,529
The inclusion of the digital edition make me think they're going to price it at $499/599 respectively. I'll probably still buy it anyway, but I'll hold off on the XBOX if the PS5 is pricier than I prefer.
This is what I'm expecting for the pricing, but it would be ok if they made them both the same price at $499 or so and give gave us more storage on the digital edition as a trade-off for the drive.

I remember Mark Cerney saying we would still be able to add additional storage to the console as well in his keynote a while back, so if we can still throw an external drive/SSD onto the console to store games on and swap out onto the internal NVME SSD to play as needed, that would be cool and I wouldn't be as concerned with internal storage size, which would also allow them to feasibly get by with only 1TB of storage initially.
 

vegeta535

Supreme [H]ardness
Joined
Jul 19, 2013
Messages
4,161
This is what I'm expecting for the pricing, but it would be ok if they made them both the same price at $499 or so and give gave us more storage on the digital edition as a trade-off for the drive.

I remember Mark Cerney saying we would still be able to add additional storage to the console as well in his keynote a while back, so if we can still throw an external drive/SSD onto the console to store games on and swap out onto the internal NVME SSD to play as needed, that would be cool and I wouldn't be as concerned with internal storage size, which would also allow them to feasibly get by with only 1TB of storage initially.
Having a external drive can work. Since they claim you can start playing almost instantly after starting a install off a Blu-ray.
 

T4rd

Fully [H]
Joined
Apr 8, 2009
Messages
17,529
Having a external drive can work. Since they claim you can start playing almost instantly after starting a install off a Blu-ray.
Yeah, the PS4 works the same way too with both discs and digital downloads, so I'd hope they'd keep that feature.
 
Joined
Apr 11, 2017
Messages
611
600-700 sounds about right.
-RDNA 2 GPU faster than 5700xt ~$400
-8 core 16thread Zen2~ $250
Without adding SSD or anything else that comes to $650.
I know that the BOM will be less, but remember, the BOM doesn't take into account the development costs to design and create the product.

If they can make a FULL console with a GPU that's faster than a 5700xt, AND make it cost less than a 5700xt or a GPU of comparable perf to the consoles GPU, then that would be crazy
 
Last edited:

Marees

Limp Gawd
Joined
Sep 28, 2018
Messages
511
While Sony won't yet be drawn on how much the PlayStation 5 will cost, the company is emphasising "value as opposed to price" — PlayStation CEO Jim Ryan told BBC Click (thanks, Comic Book) when asked if it was prudent to release a next-gen machine in a time of unprecedented economic uncertainty

https://www.eurogamer.net/articles/...sed-to-price-when-it-comes-to-pricing-the-ps5

And as we enter a period of economic uncertainty, is it a good time to be releasing a new machine?
Conventional wisdom and history show that our business is one of the more recession-proof businesses. But I think this will sharpen our need to ensure that we focus on getting the value equation right. And I emphasise value as opposed to price.

We must be more attentive than ever before to ensure that the overall value proposition in terms of the console and the games - the range of games, the quality of games, the quantity of games - makes this something that our community aspires towards.
 

limitedaccess

Supreme [H]ardness
Joined
May 10, 2010
Messages
7,587
An interesting issue to consider is the that of resellers and scalping. I feel any aggressive pricing (low) will really more so be to the benefit of people looking to resell to profit which creates an interesting consideration. The rumors point to the supply side being low. The resell market, due to the growth in internet connectivity, is also rather ubiquitous now for high demand electronics at launch with limited supplies.

The economic issues currently is also interesting in that I don't feel it's as simple as other downturns, it really is more aptly termed as economic uncertainty. Why? If you look at the numbers the economic issue very unevenly affecting the populace depending on what sectors they work and therefore their economic stratus. It's actually interesting in that some demographics actually will have more disposable income and willingness to spend for gaming products going forward due to a lack of (or negligible) earnings reduction while having an expenditure reduction (eg. that vacation is off the table now, where does the entertainment budget go?).

So while of course everyone may want the cheapest possible there actually might be a willingness to pay much more that gaming companies will look to try to capture over the short to medium term.
 

Ranulfo

[H]ard|Gawd
Joined
Feb 9, 2006
Messages
1,951
I liked the one guys reply of 399.99 for the digital edition and 499.99 for the normal version. If you buy the all digital version that’s 7 years of PSN game purchases, PS+ and peripherals. They could sell it for a 60 dollar loss and be fine. Their future earnings report has them in the red for the next 2 years iirc.

BOM is 460 I think, so if we assume that was for the all digital version the 20 dollar Blu-ray drive puts it at 480 so it makes sense.
A 4k UHD blu-ray player isn't $20 at cost. Maybe a standard blu-ray drive but not 4k.
 

Flogger23m

[H]F Junkie
Joined
Jun 19, 2009
Messages
10,719
I'm doubting these will be $700.

I don't see them being more than $500. Yes it will be a loss, but outside of the last generation that has been the norm for consoles throughout history. They're pushing subscriptions and other things harder than ever and that is where they plan to make the profits.

As console gamers gradually transition more to downloads like PC gamers, I assume Sony/Microsoft will make the profit margin work better in their favor. More games sold directly, cutting out middleman profits and disc costs being dropped is another thing I expect them to leverage to their advantage.
 

vegeta535

Supreme [H]ardness
Joined
Jul 19, 2013
Messages
4,161
A 4k UHD blu-ray player isn't $20 at cost. Maybe a standard blu-ray drive but not 4k.
Not just the BoM cost but there are licensing fee involved. Idk how Sony is involved since they were co creators but to hear the license is not cheap.
 

deruberhanyok

[H]ard|Gawd
Joined
Aug 22, 2004
Messages
1,572
PS3 launched at $600. People weren’t happy but it sold anyways.

my guess is $600 for PS5. People won’t be happy but it will sell anyways.
 

vegeta535

Supreme [H]ardness
Joined
Jul 19, 2013
Messages
4,161
PS3 launched at $600. People weren’t happy but it sold anyways.

my guess is $600 for PS5. People won’t be happy but it will sell anyways.
It didn't sell that well. It lost that generation to the 360 in the states at least cause of it.
 

Armenius

Fully [H]
Joined
Jan 28, 2014
Messages
22,719
PS3 launched at $600. People weren’t happy but it sold anyways.

my guess is $600 for PS5. People won’t be happy but it will sell anyways.
A UK store had a preorder up for £600. That is $625 USD without the VAT and at current exchange rates. I've been predicting between $600 and $800 for this new generation since specs were revealed last year.
It didn't sell that well. It lost that generation to the 360 in the states at least cause of it.
If the Series X is priced similarly then cost difference isn't going to matter in sales. Since both consoles are basically exactly the same this time around I would expect them both to be priced the same. It all depends on who is going to take the chance to be a loss leader.
 

Aurelius

2[H]4U
Joined
Mar 22, 2003
Messages
2,783
It didn't sell that well. It lost that generation to the 360 in the states at least cause of it.
Mind you, that was also in 2006... inflation and expectations have also changed since then. Not that $600 is the new $300, but people probably won't balk like they did 14 years ago. That and I think Sony is being careful to avoid the "just work two jobs!" rhetoric it used with the PS3.
 

vegeta535

Supreme [H]ardness
Joined
Jul 19, 2013
Messages
4,161
Mind you, that was also in 2006... inflation and expectations have also changed since then. Not that $600 is the new $300, but people probably won't balk like they did 14 years ago. That and I think Sony is being careful to avoid the "just work two jobs!" rhetoric it used with the PS3.
Yes they will lol. Why do you think it such a issue atm. MS and Sony playing chicken on revealing the price.
 

M76

[H]F Junkie
Joined
Jun 12, 2012
Messages
11,007
For the price to matter first I have to want it. So far nothing I saw convinced me. Neither the teased games, nor the features.
 

Meeho

Supreme [H]ardness
Joined
Aug 16, 2010
Messages
4,934
For the price to matter first I have to want it. So far nothing I saw convinced me. Neither the teased games, nor the features.
You weren't impressed by prerendered trailers of games you won't be able to play for months after purchase? Not even by the GTA V rererelelease?
 
Top