How to sell a next-gen console - price point and marketing [2020]

Discussion in 'Console Industry' started by steveOrino, Jul 11, 2018.

  1. DSoup

    DSoup meh
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    LTE?

    Yes, 3-4 weeks is the typical TSMC fab run. So stock is replenished every few weeks. They'll never be out of stock for six months. :nope:
     
  2. London-boy

    London-boy Shifty's daddy
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    Whatever they sell, we all know that they will sell as many PS5 as they can produce.
     
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  3. RDGoodla

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    Seeing all the leaked prices, it seems:


    PS5 1.65TB $599
    PS5 825GB $499
    PS5 825GB Digital $399


    If we consider Bloomberg said PS5 BOM $450, then the above price seems certain and probably no further price cut
    at launch.
     
  4. iroboto

    iroboto Daft Funk
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    sorry LTS. lol life time sales.
    Replenished and sold out!
    I remember how hard people were fighting to get one, people lining up each day. In hope the stock would arrive.
     
  5. Shifty Geezer

    Shifty Geezer uber-Troll!
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    they'll definitely be lining up to get PS5. Standing 2 metres apart!
     
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  6. Jay

    Jay
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    And even with consoles selling out, momentum and being the console that is talked about counts for a huge amount.

    Momentum can drop of comparatively very quickly, remember early days XO seemed to be doing ok. So you do want those games pretty early also.
    Be interesting what the attach rate for those games will be, as early adopters may be the ones more likely to buy those titles anyway. Obviously not saying going to sell 14m of the bat.
     
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  7. jayco

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    I wonder when we will start to see ads for next gen console, last (current) get were very good overall.



    .
    .
    .
    ...

    This is how you sell a processor Intel!



    GOW Ad was pretty good as well.

     
    #487 jayco, Jun 16, 2020
    Last edited: Jun 16, 2020
  8. DuckThor Evil

    DuckThor Evil Anas platyrhynchos
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    I think it takes quite a bit longer than that for a chip to be finished at a fab, but it's a multistage process (to put it mildly) and wafer starts happen much more frequently, they'll probably get finished chips ready to ship every day once the production is up and running.
     
  9. DSoup

    DSoup meh
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    It's not about about how long an individual chip, it's about the product line and how often chips leave in batches. For Apple, TSMC ship weekly. Sony and Microsoft don't need this, or rather it's not economical to do so.
     
  10. DuckThor Evil

    DuckThor Evil Anas platyrhynchos
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    Yeah I kind of missed the context what you guys were talking about, shortages in the stores and what not. Regardless I don't know how often TSMC ships console APUs, but it shouldn't matter all that much vs actual quantity. The factory where they assemble the units should have a steady supply of chips and inventory of all parts and be able to produce a set amount of units per shift, day and month constantly without pauses. The shortages in stores are caused by demand that eats the initial stock pile of built units and exceeds the continuous production capacity, then you are just mainly waiting for the cargo ships to arrive with new units and possibly see them vanish quickly until the demand settles down or production capacity is increased.
     
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  11. DSoup

    DSoup meh
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    I'm drifting dangerously close into NDA territory from a previous job here. Fab operations can be quite complex for low volume customers and I include Sony and Microsoft in this. There are a number of significant and separate stages that the chips go through and they are rarely linearly sequential. Ignoring the actual production of the wafers themselves, but beginning with their preparation, Stage 1 may take two weeks to output the next three months worth of items, after which equipment used in stage 1 is re-purposed to produce items for another customer. Stages 2 and 3 may work roughly equally and work through three months worth of stage 1 items, processing perhaps 8% of that stage 1 store weekly. Before the stage 1 store depleted, stage 1 will begin again on the next 3 months worth - this is why it's sometimes very slow to react to sudden increased demand.

    Later stages may initially be even slower than earlier stages, anything regarding testing and final qualification usually will and while you won't test all chips (you might, but you probably won't), you will heavily sample each batch, likely starting testing double-digit figures - and this fall/rise over time as confidence on manufacturing changes. It's very unusual for this multistage pipeline to be equal start to finish. Fabs can do that, with Apple they're literally pump through ICs with stage 1 pumping into stages 2 and 3 (which are 'wider') than low-volume customers.

    If this all sounds complicated, these arrangements often shifts node to node and process to process.
     
  12. DuckThor Evil

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    By factory "where they assemble the units" I meant Foxconn, Flextronics etc. They are not going to suddenly run out of chips, but have a ton of other parts lying around. Unless something drastic happens, they should have everything under control and have proper inventory management of parts and fairly regular production schedules/volumes planned ahead of time, but yeah change in demand will take quite a bit of time to fully adjust manufacturing.

    I've also worked few years in clean room environment with silicon wafer manufacturing in a few different stages of the process, but only as a low"grunt" though :razz:
     
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  13. rumaki

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    I can't wrap my head around the idea of paying $600 for a console of any kind. I mean it's not even a hardship financially it's like I just have this mental barrier that would do me from doing so.
     
  14. PSman1700

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    #494 PSman1700, Jun 18, 2020
    Last edited: Jun 18, 2020
  15. rumaki

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    I don't need one. Like I said earlier it's not the fact of paying that price. I spend much much more on other hobbies
     
  16. London-boy

    London-boy Shifty's daddy
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    Value vs Price. If you don't see the value in spending your money in a console, then there's no 'second job' that will help, as the issue it not about Price, but about Value.
     
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  17. PSman1700

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    Yeah i understand, i don't think 499 should be a problem but 599 seems abit high for what you get. On the other hand, 600 dollars at a one time investment, if you have the console for 7 years, it's not so expensive. Compare that to pc's costing double that.
     
  18. zupallinere

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    PS3 redux pricing seems a bad move so unless there is some crazy amount of something in the PS5 to justify it ( I don't see a heat sink costing $80 or whathaveyou ) I can't imagine why they would go there.
    Over in the MS thread folks are suggesting 399.99 for the Series X and 199.99 for Lockhart so if Sony is expecting to charge 600 while a more powerful Series X sticks to 400 then anyone associated with any decision that creates such an outcome will be out of a job fairly quickly.
    Somehow survival instincts in Sony leadership will kick into gear before this kind of thing happens I would assume.
    Mind you if MS wants to cough up that kind of cash up front to make a big splash that would be great for everyone but Sony.
     
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