Initial BoM Losses: Xbox-Next & PS5 (Poll)

What initial losses do you expect Sony (PS5) and/or Microsoft (Xbox-Next) would eat in BoM cost?

  • PS5: None

    Votes: 12 34.3%
  • PS5: Less than $100 per unit.

    Votes: 19 54.3%
  • PS5: Between $100 and $150 per unit.

    Votes: 2 5.7%
  • PS5: Between $150 and $200 per unit.

    Votes: 1 2.9%
  • PS5: Greater than $200 per unit.

    Votes: 0 0.0%
  • XBN: None

    Votes: 8 22.9%
  • XBN: Less than $100 per unit.

    Votes: 17 48.6%
  • XBN: Between $100 and $150 per unit.

    Votes: 4 11.4%
  • XBN: Between $150 and $200 per unit.

    Votes: 2 5.7%
  • XBN: Greater than $200 per unit.

    Votes: 1 2.9%

  • Total voters
    35

Shortbread

Island Hopper
Legend
What initial losses do you expect Sony (PS5) and/or Microsoft (Xbox-Next) would eat in BoM cost?

Prior Initial BoM Losses
Xbox:
No data available.
Xbox 360: $125-$252 per unit ($525 - $552 BoM / $299 No HDD / $399 HDD)
Xbox One: $33 per unit (457 + $75 Kinect BoM / $499)
Xbox One X: None ($442 BoM / $499)

PlayStation: $130 per unit ($430 BoM / $299)
PlayStation 2: $179 per unit ($479 BoM / $299)
PlayStation 3: $305 per unit ($805 BoM / $499 20GB HDD / $599 60GB HDD)
PlayStation 4: None ($381 BoM / $399)
PlayStation 4 Pro: None ($318 BoM / $399)
 
I believe sony will try to break even and MS would have a slight over spend . I don't think either want to lay out that much money this time around.

Now perhaps we will get two skus again and one sku would be a loss leader and the other will actually make a profit ?

Xbox Next 1TB NVME $400 Xbox Next 2 TB NVME $500. Something like that
 
I expect ps5 bom to be ~500$. Sony might take 50$ loss on unit to get it priced something like 449$. This would leave enough room to eventually sell 299$ ps5 and have midlife refresh around 500$ pricepoint. I doubt p5 ever price reduces to 199 or lower. Ps4 will sell at low end for real long time and bc is here to stay.

Say goodbye to generations, say hello to mobile phone like business model where people are divided to camps not so much because of hw but the existing investment to ecosystem.
 
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Both will lose less then $100. I think next-gen will last even longer due to an even slower tech progression in the future so they will both want the initial consoles to pack more tech from the get go.

MS will amortize the cost over of their (rumored) higher end SoC buy using binned SoC across their cloud and lower end SKU.
 
Sony - no cost eaten or insignificant cost. Their brand is so strong that even if their console is less powerful than Microsoft's console, they'll still sell significantly more. The only thing that has a chance of changing is that is if Sony screw up somehow and MS come out with some mind blowing exclusives.

MS - no cost eaten or minimal cost (similar to XBO). While the Board of Directors is much less hostile to the Xbox division now, they are still unlikely to look favorably upon an Xbox console that incurs a loss per sale at launch. IMO - as long as Xbox remains profitable they won't make noises about divesting the company of that division. However, if there is any sign of unprofitability, I expect tensions to flare up again from their investors. Thus, MS are likely to play it safe with MSRP in relation to cost of console. However, that doesn't mean that MS won't still have periodic sales with deep discounts as they have had with the XBO in an attempt to expand their user base.

Regards,
SB
 
With streaming options available, the notion of subsidizing consumers is not likely. My sense is we see streaming box from MS and some sort of similar offering (in terms of service not the box) by way of PSNow from Sony.
 
What initial losses do you expect Sony (PS5) and/or Microsoft (Xbox-Next) would eat in BoM cost?

Prior Initial BoM Losses
Xbox:
No data available.
Xbox 360: $225-$252 per unit ($525 - $552 BoM / $299 No HDD / $399 HDD)
Xbox One: $33 per unit (457 + $75 Kinect BoM / $499)
Xbox One X: None ($442 BoM / $499)

PlayStation: $130 per unit ($430 BoM / $299)
PlayStation 2: $179 per unit ($479 BoM / $299)
PlayStation 3: $305 per unit ($805 BoM / $499 20GB HDD / $599 60GB HDD)
PlayStation 4: None ($381 BoM / $399)
PlayStation 4 Pro: None ($318 BoM / $399)

$125-$252 for the 360
 
Do you really trust these "BoMs"?:)

Never have, not for actual numbers. It might be usefull for relative comparisons within the same product family or for percentage breakouts, but that's assuming they're wrong by similar portions in each area. It would be really bad if they're wrong by 250% on CPU and only 20% Storage.

The real difficulty will be in getting accurate Bill of Material costs, instead of the stupid BS numbers we have been getting.
 
Do you really trust these "BoMs"?:)

Nothing is 100% official unless stated by Sony, Microsoft and Nintendo. And some BoM pricing may-not take into consideration contracts dealing with bulk/volume pricing. That being said, the majority of BoM data that I have provided here and within the General Console Info Thread, are sourced from three sites (below) on providing some ideas on BoM ranges.

https://technology.ihs.com
https://electronics360.globalspec.com
https://www.techinsights.com
 
I think they both will take a loss because of going with SSD storage, plus minus a hundred dollars.
 
So looking back at that Pastebin PS5 leak, it mentions $100 initial loss per console sold at $499 with the specs of 14TF Navi, 24 gig GDDR6 + 4gig DDR4 and 2 TB SSD.
https://pastebin.com/PY9vaTsR
Do you think such BOM could cover all that? Sony would have to get one heck of a deal from AMD and others to remotely come close I reckon.
 
So looking back at that Pastebin PS5 leak, it mentions $100 initial loss per console sold at $499 with the specs of 14TF Navi, 24 gig GDDR6 + 4gig DDR4 and 2 TB SSD.
https://pastebin.com/PY9vaTsR
Do you think such BOM could cover all that? Sony would have to get one heck of a deal from AMD and others to remotely come close I reckon.

Anything is possible. Maybe Sony and Samsung are partnering (again, but now with a healthier Sony) on CMOS and memory manufacturing, giving each company access to cheaper materials/parts benefitting from this partnership. Or simply, Sony and Samsung are providing discounts on their respective IPs which each company needs. I can see Samsung having greater profit margins with their Galaxy cell/tab line from cheaper CMOS parts, and Sony benefitting from having cheaper memory/storage solutions towards Playstation products. Like I said, anything is possible.
 
Anything is possible. Maybe Sony and Samsung are partnering (again, but now with a healthier Sony) on CMOS and memory manufacturing, giving each company access to cheaper materials/parts benefitting from this partnership. Or simply, Sony and Samsung are providing discounts on their respective IPs which each company needs. I can see Samsung having greater profit margins with their Galaxy cell/tab line from cheaper CMOS parts, and Sony benefitting from having cheaper memory/storage solutions towards Playstation products. Like I said, anything is possible.

In that one rumour with the 8GB hbm memory I think there was mentioned that PS4 7nm was being fabbed by Samsung and was the best price per wafer in the industry?
 
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