Jmesparza05
Newcomer
I suspect at the state of play they might reveal how the console looks like even tho we already know how it looks like.
What does this mean?
Sony PlayStation 5 Pro
- Thread starter chris1515
- Start date
PS5 was sold throughout it’s entire lifetime at prices higher than the introduction. While some temporary price drops, it never received an official pricedrop and only went up in price.
More than 60.000.000 units sold, right?
They made a big profit and seeing as historically, the Pro console sold about 20% compared to the regular one, lowering the regular price will boost/continue PS5 sales momentum and having the PS5 Pro at the ‘old’ (as of today current) PS5 price means that it will appear as great value and it will introduce many more PS5 players as people can easily sell their regular PS5 and upgrade to the Pro model
Charlietus
Regular
The problem with this is that, compared to 2020 in, let's say, the USA, inflation has gone up about 20%. That means that a PS5 sold for 500$ would be sold for 600$ right now.
I can see a price cut of the base model of about 50€ if they got production costs under control, but there is no way the pro is under 550$ for the digital (probably 600$).
Console production costs have never been tied to inflation of a country. Historically production costs go down over time (offsetting any inflation). PS5 and Xbox Series have been selling at inflated prices for the majority of their lifetimes
Jmesparza05
Newcomer
Charlietus
Regular
That's not what Sony and Microsoft are telling to investors. Production costs reportedly have gone up compared to 2021 when they were selling at cost. Don't know if things have calmed down.
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Subtlesnake
Regular
Phil Spencer admitted that their current gen consoles were sold at a loss of $100 - $200.
"So when somebody goes and they buy an Xbox at their local retailer we’re subsidizing that purchase somewhere between a hundred and two hundred dollars, with the expectation that we will recoup that investment over time through accessory sales and storefront."
Microsoft loses up to $200 on each Xbox console sold
Microsoft loses up to $200 on each Xbox console it sells. Speaking at the WSJ TechLive event on 26th October, Xbox head…
www.eurogamer.net
Sony uses a slightly smaller APU, but I would not expect the BOM to be more than $50 lower. And Sony have recently told us that costs have not come down enough to allow them to consider a big price drop. Indeed we saw the price of the Digital Edition effectively go up by $50.
"In an investor call viewed by IGN, Sony Interactive Entertainment boss Hiroki Totoki said it's harder to “shrink” the PS5’s die size and therefore cut console manufacturing costs compared to Sony’s ability to cheapen the PS4. “Therefore cost reduction is very difficult, simply put,” Totoki said."
Sony Says Big PS5 Price Cut Would Be 'Very Difficult' - IGN
Sony has said a big PlayStation 5 price cut would be “very difficult” as the console enters into the second half of its life cycle.
Frenetic Pony
Veteran
No wonder the Series hardware designer was fired, holy shit that's amazing. Meanwhile Sony is over there selling the equivalent at the same (at least for the disc version) and not losing any money at all off hardware sales.
Anyway PS5 Pro is £499 so that's probably like $559 USD considering average pricing differences. Not even sure why I'm posting this we'll know tomorrow.
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Charlietus
Regular
I don't think the cost of plastic going up, or copper or TSMC raising prices is "lacking foresight". There isn't really much those companies can do.
Ps: Also, forgot to add, the transportation costs have gone up too.
Subtlesnake
Regular
New processes no longer significantly bring down the cost/transistor, hence the scope for cost reducing the APU is limited. And for the rest you're reliant on component costs, which seem to have gone up since COVID. Microsoft knew at the start of the generation that the scope for cost/price reductions would be limited. That's why they built the S.
Some additional backing for you
arandomguy
Veteran
The core issue is the decline in silicon scaling across the industry. Porting to new processes, and chip design changes in general, also incurred much less fixed costs in the pasts.
CPU/GPU, memory and storage costs used to halve in 2 years (or less). Now they might be more expensive even 4 years onwards depending on various industry factors (such as where we are in the semi-cycle).
i wonder if the ps5 pro will have more detachable claddings and sony selling more claddings variety. so they could get more money
cheapchips
Veteran
Wouldn't that be 6 minutes with boost clock?
(I was going to work out the actual boost clock speed increase but couldn't be arsed)
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