(Update) Rumor: PlayStation 5 will be using Navi 9 (more powerful than Navi 10), new update Jason Schreier said Sony aim more then 10,7 Teraflop

[DonFerrari]

Intrinsic said:

BraLoD said:

People tend to forget Sony/MS will be buying components in the millions of units from the get go.

If I buy 3 of something in the market I can already get a discount. Imagine if I buy 5 milion units at once and the vendor knows I may be needing to buy up to 100M in the next five years? Sony and MS probably gets massive amounts of discount on anything they put in their consoles, specially Sony as the PS consoles are basically guaranteed to go around 100M units made.

What you have said can't be stressed enough. 

This is also why pretty much no one likes doing business with nvidia.... thats because  they don't take that whole bulk purchases thing into account. Other companies charge you less because you need a lot and will need a lot more.... nvidia charges you more when they see you need more or anything extra rom them for that matter.

That is because they have more power and the best solution. They don't need any of the 3 manufacturers buying from them so they won't do razor thin margin to capture the sale.