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Is the market ready for a $500 console yet?

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What should the PS5 & Xbox 4 cost at launch?

$500 (high specs) 45 60.81%
 
$450 (moderate specs) 8 10.81%
 
$400 (low specs) 21 28.38%
 
Total:74
DonFerrari said:
Yes it is, PS3 launched at 599 and had sales, X1 and X1X also had sales launching at 499. But still for obvious reason there is more initial sales when launching at 399 and good product than at 499.

Are you seriously using 2 stumbled launches that cost their platform owners nearly half the customers they had built up from the previous generation as a sign that the mass market consumer wants to pay $500 or more for a video game console?  The PS3 had sales at $599, sure.  But, was it "good sales" if there were 70 million less PlayStation owners from the previous gen?  The Xbox One had sales at $499, sure.  But, were they "good sales", if Microsoft may have lost 50% of it's own customer base from the previous gen?  I would say no based on just the fact that Microsoft does not even announce sold numbers for the Xbox One or Xbox One X.  When you aren't announcing milestones, you aren't exactly happy with your sales, are you?  



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jason1637 said:
I'd say yes. The Xbox One launched at $500 with a lot of controversy and it sold really well at launch. The One X is a mid gen console and launched at $500 and it seems to have done well also. A $500 next gen console without kinect controversy will sell well.

You honestly look at the Xbox One sales this gen compared to how the 360 did, and consider it selling well?  I'm not dumping on Xbox just for the sake of it, mind you.  I own one.  And, yes, I waited until the price point was under $400 before doing so.  But, I don't pretend that Microsoft has done well at all this gen.  If Microsoft launches another $500 console, they will never see Xbox 360 level sales again.  Of course, the fact that they are selling a disc-less system that is barely cheaper than the full model is a warning sign and pretty big red flag that they haven't learned anything about the importance of price point to the general consumer.



Mandalore76 said:
jason1637 said:
I'd say yes. The Xbox One launched at $500 with a lot of controversy and it sold really well at launch. The One X is a mid gen console and launched at $500 and it seems to have done well also. A $500 next gen console without kinect controversy will sell well.

You honestly look at the Xbox One sales this gen compared to how the 360 did, and consider it selling well?  I'm not dumping on Xbox just for the sake of it, mind you.  I own one.  And, yes, I waited until the price point was under $400 before doing so.  But, I don't pretend that Microsoft has done well at all this gen.  If Microsoft launches another $500 console, they will never see Xbox 360 level sales again.  Of course, the fact that they are selling a disc-less system that is barely cheaper than the full model is a warning sign and pretty big red flag that they haven't learned anything about the importance of price point to the general consumer.

I said it sold well at launch. It sold like 3m in 2013 with all the controversy and the Kinect.



Oof, I think people are underestimating how hard of a sale consoles at 500$ pricepoint would be, especially foreign market(Outside the US) who all get it worse in price equivalence (500 euros, 650-750 CAD, 425-450 Sterlings, 52 500 Yen). The promise of power is nice, but I don't think even your hardcore FIFA fan/casual PS player would jump on it, PS4 would end up being largely a better deal, if they don't even have one already which means they'll end up in a long waiting game until the PS5 gets it's price slashed which don't happen regularly anymore except during Holidays.

So, at least, make it 450$ instead.



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While this doesn't mean it will apply again in the future, but Microsoft and Sony have sold consoles at a loss before and make up the difference with 1 or 2 game sold per system. Then add on the money being made with Xbox Live Gold and PlayStation Plus.

I still think $399 at launch would sell much better than $499. But it depends on the specs and how much MS and Sony are willing to lose per console sold. The consoles will generally sell well the first couple months, but both need a steady stream of quality exclusives. Nintendo launching the Switch with BotW really helped, then MK8D, Splatoon 2 and Mario Odyssey over the next several months after launch helped keep the sales up.



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The fans Will get it, even if its more than 500€. And if ir deliver the non fans will get it later.



It has to be. Otherwise there will be little reason to upgrade for those who have a Pro/X, as the visuals will be practically the same. And to make them visibly better in the graphics department, there needs to be hardware, that's pretty much high-end right now - and that doesn't come cheap.

Seriously, even at 500$, I expect them to sell the consoles at a serious loss. 700-800$ is what I expect the consoles to be costing in manufacture, plus shipping...

The GPU needs to be at least on par with a Vega 56 to make a visible difference to the One X, and those cost around 270-300€ right now. And that's just the GPU without the CPU, RAM, or any other parts. A previous Gen Ryzen 8 core chip still goes for about 200€, and AMD won't let this opportunity pass to make a buck. Expect around 400€ just for the APU, 450 with cooler and Motherboard. Add the RAM (70-150€ depending on the amount and standard), SSD, HDD (just SSD would inflate the price even further, 250€ for a 2TB SSD, 150€ for a small SSD coupled to a bigger HDD), casing, packaging (30-50€)

Last edited by Bofferbrauer2 - on 18 April 2019

Mandalore76 said:
DonFerrari said:
Yes it is, PS3 launched at 599 and had sales, X1 and X1X also had sales launching at 499. But still for obvious reason there is more initial sales when launching at 399 and good product than at 499.

Are you seriously using 2 stumbled launches that cost their platform owners nearly half the customers they had built up from the previous generation as a sign that the mass market consumer wants to pay $500 or more for a video game console?  The PS3 had sales at $599, sure.  But, was it "good sales" if there were 70 million less PlayStation owners from the previous gen?  The Xbox One had sales at $499, sure.  But, were they "good sales", if Microsoft may have lost 50% of it's own customer base from the previous gen?  I would say no based on just the fact that Microsoft does not even announce sold numbers for the Xbox One or Xbox One X.  When you aren't announcing milestones, you aren't exactly happy with your sales, are you?  

You are certainly reading it wrong, or with some different intent.

The point is that even at those high price point they sold well at launch, that is all there is. I even said that it will do much better at 399.

PS4 will end up selling 30M less than PS2 so it must have been a failure as well right? PS3 and X1 wouldn't ever sell near close to their predecessors because X360 was a worth contender for PS3 so even if PS3 didn't made major mistakes it would probably still sit 100-120M total, while PS4 was a much better proposition than X1 (besides MS only being relevant in US and UK) so it also wouldn't ever cross 70M.



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trunkswd said:
While this doesn't mean it will apply again in the future, but Microsoft and Sony have sold consoles at a loss before and make up the difference with 1 or 2 game sold per system. Then add on the money being made with Xbox Live Gold and PlayStation Plus.

I still think $399 at launch would sell much better than $499. But it depends on the specs and how much MS and Sony are willing to lose per console sold. The consoles will generally sell well the first couple months, but both need a steady stream of quality exclusives. Nintendo launching the Switch with BotW really helped, then MK8D, Splatoon 2 and Mario Odyssey over the next several months after launch helped keep the sales up.

Rumor has it that Sony is planning to take a $100 hit with a $500 pricepoint. Even with software and services It would be hard for them to take a $200 hit on every console sold if they sell the PS5 at $400 at launch.