Baseless Next Generation Rumors with no Technical Merits [post E3 2019, pre GDC 2020] [XBSX, PS5]

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There's been a big discussion elsewhere about the new rumored $450 BOM for PS5 as a result of the scarce supply for NAND and memory thus spiking the BOM more than they anticipated, therefore Sony is waiting for MS to reveal their price first before announcing PS5's. Zhuge thinks XsX BOM is at minimum $460 and possibly as high as $520. Taking into account of other costs, the retail unit of both company will absolutely reach $499 and selling at a loss.

Something tells me PS5 won't be revealed until around June, Sony is only but toying around with our sanity :(.
 
Sony Is Struggling With PlayStation 5 Price Due to Costly Parts

https://www.bloomberg.com/news/arti...-with-playstation-5-price-due-to-costly-parts

- Scarce components have pushed the manufacturing costs for Sony Corp.’s next PlayStation to around $450 per unit, forcing a difficult price-setting decision in its battle with Microsoft Corp., according to people with knowledge of the matter.

- Sony typically finalizes a console’s price in February of the release year, followed by mass production in the spring. With the PS5, the company is taking a wait-and-see approach, said the people, asking not to be named because the details are private.

- The PS4, released in 2013 at a retail price of $399, was estimated by IHS Markit to cost $381 to manufacture. With the $450 unit cost and a similar gross margin, the PlayStation 5’s retail price would have to be at least $470.

- 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.

- Sony’s Chief Executive Officer Kenichiro Yoshida has said the business should be judged by the number of active users, not the number of hardware units sold. Some Sony games staff think it should sell the new console at a loss if necessary to match Microsoft’s price, while other Sony executives would prefer to make money as the company did with the PS4.

- Most of the components for the console have been locked down, the people said, including the cooling system, which is unusually expensive at a few dollars per unit. Typically, companies would spend less than a dollar, but Sony opted to lavish more on making sure heat dissipation from the powerful chips housed inside the console isn’t an issue.

- The ongoing coronavirus outbreak has had no impact so far on preparations for PlayStation 5 production, they said. The company has yet to decided how many PlayStation 5 units it will make in the first year, they added.

- Sony executives are voicing patience about the next console’s pricing as they anticipate the transition to be a gradual one, said people familiar with its day-to-day operations. Many of the games launched for the PlayStation 5 will also be available to play on the predecessor machine, so revenue from software and related network services is expected to keep the business performance intact.

- People within the PlayStation business unit said a key factor in deciding the ultimate PlayStation 5 retail price will be where Microsoft sets its price for the next-generation Xbox Series X. Microsoft is widely expected to hold that information back until the E3 gaming expo in Los Angeles in June.

- Asked about when he expects Sony to provide guidance on the gaming business outlook for the new fiscal year, Totoki said the plan is no different from the recent past, meaning the guidance can be expected around the end of April.
 
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Thanks. Well this sort of settles and wraps up the last bit of discussion fairly well.this is now the new mode for us to work from.
 
mpg1 said:
Sony Is Struggling With PlayStation 5 Price Due to Costly Parts

https://www.bloomberg.com/news/arti...-with-playstation-5-price-due-to-costly-parts

- Scarce components have pushed the manufacturing costs for Sony Corp.’s next PlayStation to around $450 per unit, forcing a difficult price-setting decision in its battle with Microsoft Corp., according to people with knowledge of the matter.

- Sony typically finalizes a console’s price in February of the release year, followed by mass production in the spring. With the PS5, the company is taking a wait-and-see approach, said the people, asking not to be named because the details are private.

- The PS4, released in 2013 at a retail price of $399, was estimated by IHS Markit to cost $381 to manufacture. With the $450 unit cost and a similar gross margin, the PlayStation 5’s retail price would have to be at least $470.

- 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.

- Sony’s Chief Executive Officer Kenichiro Yoshida has said the business should be judged by the number of active users, not the number of hardware units sold. Some Sony games staff think it should sell the new console at a loss if necessary to match Microsoft’s price, while other Sony executives would prefer to make money as the company did with the PS4.

- Most of the components for the console have been locked down, the people said, including the cooling system, which is unusually expensive at a few dollars per unit. Typically, companies would spend less than a dollar, but Sony opted to lavish more on making sure heat dissipation from the powerful chips housed inside the console isn’t an issue.

- The ongoing coronavirus outbreak has had no impact so far on preparations for PlayStation 5 production, they said. The company has yet to decided how many PlayStation 5 units it will make in the first year, they added.

- Sony executives are voicing patience about the next console’s pricing as they anticipate the transition to be a gradual one, said people familiar with its day-to-day operations. Many of the games launched for the PlayStation 5 will also be available to play on the predecessor machine, so revenue from software and related network services is expected to keep the business performance intact.

- People within the PlayStation business unit said a key factor in deciding the ultimate PlayStation 5 retail price will be where Microsoft sets its price for the next-generation Xbox Series X. Microsoft is widely expected to hold that information back until the E3 gaming expo in Los Angeles in June.

- Asked about when he expects Sony to provide guidance on the gaming business outlook for the new fiscal year, Totoki said the plan is no different from the recent past, meaning the guidance can be expected around the end of April.
Click to expand...
Bloomberg are known for completely made up articles and structured to make it look like they have sources when they didn't know jack shit. They often insert stuff in the middle of factual info.

Don't assume they have anything more than a mix of real interviews we already know about, wild speculation, and reddit posts.
 
MrFox said:
Bloomberg are known for completely made up articles and structured to make it look like they have sources when they didn't know jack shit. They often insert stuff in the middle of factual info.

Don't assume they have anything more than a mix of real interviews we already know about, wild speculation, and reddit posts.
Click to expand...

This reporter just moved to Bloomberg from The Wall Street Journal and reports on Japansese industry...pretty skeptical that he is just making up shit.
 
mpg1 said:
This reporter just moved to Bloomberg from The Wall Street Journal and reports on Japansese industry...pretty skeptical that he is just making up shit.
Click to expand...
That's your prerogative.

Read the line saying the typical cost of cooling system in a console is less than a dollar. Where does this information comes from?
 
fehu said:
So... usually the entire cooling system cost less than a dollar?
Copper + metal heatsink + fan? Less than a dollar?
Click to expand...
Aluminium costs about $1.75 per kg
Copper about $5.72 per kg
Fan materials, electronics etc on top of that.
Anyone know how much PS4's heatsink weights and how much of it is copper and aluminium?
I'm wondering if you could even get the raw materials for under $1
 
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