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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

I think the reason that the PS3 -> PS4 jump wasn't that great was due to the fact that Sony released the PS3 at $599 (and wasn't that at a loss of $150 per box initially?), compared to the PS4 which launched at $399, and was supposedly estimated to cost $381 at launch, according to enGadget.

An extra $100 investment on the internals of the system at launch could go a long way into making a better console in the long run. Now I'm not sure whether or not it's a good idea in terms of profitability and sales, but for me personally, $1000 could disappear from my bank and I probably wouldn't even notice, so I'm all for Sony making the best console they can afford.

Source: https://www.engadget.com/2013/11/19/ps4-costs-381-to-make-according-to-hardware-teardown/



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Can't Sony realistically release a new high spec console at U$399 or at the very least at U$449 7 years after they managed that with the PS4? Or is the PS5 really going to be unbelievably more powerful in terms of technology that would justify a U$499 price tag?



Nope, 500$/499$ is way too high. Remember, these are made for gaming, a small part in your average entertainment schedule. Yes, it does Netflix, Youtube and other stuff. But so do your TV and/or your last gen console. Or even your Smartphone/tablet through Miracast/Google Cast/Air Play.

You won't spend 500$ in a Blu-Ray player either, it's just for watching movies.



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ptofhearts said:
Can't Sony realistically release a new high spec console at U$399 or at the very least at U$449 7 years after they managed that with the PS4? Or is the PS5 really going to be unbelievably more powerful in terms of technology that would justify a U$499 price tag?

The part you are having problems with is the usage of the word "high-spec". The poll used "low-specs", "medium-specs", and "high-specs" as a way of categorizing the different price points.

More powerful hardware costs more money. Or are you under the impression that $499 is a price beyond the scope of what powerful hardware can cost (i.e., there is no hardware powerful enough to cost $499)?



Yes, since specifications allow developers and players to be impressed.



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RaptorChrist said:
ptofhearts said:
Can't Sony realistically release a new high spec console at U$399 or at the very least at U$449 7 years after they managed that with the PS4? Or is the PS5 really going to be unbelievably more powerful in terms of technology that would justify a U$499 price tag?

The part you are having problems with is the usage of the word "high-spec". The poll used "low-specs", "medium-specs", and "high-specs" as a way of categorizing the different price points.

More powerful hardware costs more money. Or are you under the impression that $499 is a price beyond the scope of what powerful hardware can cost (i.e., there is no hardware powerful enough to cost $499)?

What I'm trying to say is can't Sony reach a balance between having a powerful enough console for today's standards at a U$399 price tag? Of course more powerful hardware costs more money, but seven years ago a high end console that was the PS4 cost U$399 for consumers, can't a high end console today cost the same? Is it really that advantageous to go as far as to create hardware that will cost U$499?



ptofhearts said:
RaptorChrist said:

The part you are having problems with is the usage of the word "high-spec". The poll used "low-specs", "medium-specs", and "high-specs" as a way of categorizing the different price points.

More powerful hardware costs more money. Or are you under the impression that $499 is a price beyond the scope of what powerful hardware can cost (i.e., there is no hardware powerful enough to cost $499)?

What I'm trying to say is can't Sony reach a balance between having a powerful enough console for today's standards at a U$399 price tag? Of course more powerful hardware costs more money, but seven years ago a high end console that was the PS4 cost U$399 for consumers, can't a high end console today cost the same? Is it really that advantageous to go as far as to create hardware that will cost U$499?

Until reading through this thread, I had no idea that people would look at $499 as such a high price point. For me, as a consumer, I want to see Sony release the PS5 with super powerful hardware that costs more than what the average consumer would be willing to pay.

Money is relative to the person spending it, and for some people, $499 is steep. Me ten years ago would have had concerns over the price, back during a time when the price of something played a much bigger role in my ability to buy it. Today, however, at the end of the month, once all the bills are paid, my wife and I usually have upwards of $1000 leftover, maybe more.

But those situations are always changing, and maybe ten years from now I'll be broke again, so it all depends on one's situation.



DonFerrari said:
Mandalore76 said:

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.

Where did you get that from?  The PS4 has outsold its predecessor, won back lost marketshare, and earned a profit for Sony.  3 major things the PS3 didn't.  So no, I don't equate them as the same.  I also disagree that an Xbox One minus the disastrous launch couldn't have sold 70 million consoles.  The Xbox 360 sold 10 million consoles the year before the Xbox One launched.  The Xbox One never sold more than 8.6 million in a year during it's lifetime.  Not even before the PS4 hit it's stride with exclusives.  That's not because it's only relevant in US and UK, since the 360 was saddled with that handicap as well.



RaptorChrist said:
ptofhearts said:

What I'm trying to say is can't Sony reach a balance between having a powerful enough console for today's standards at a U$399 price tag? Of course more powerful hardware costs more money, but seven years ago a high end console that was the PS4 cost U$399 for consumers, can't a high end console today cost the same? Is it really that advantageous to go as far as to create hardware that will cost U$499?

Until reading through this thread, I had no idea that people would look at $499 as such a high price point. For me, as a consumer, I want to see Sony release the PS5 with super powerful hardware that costs more than what the average consumer would be willing to pay.

Money is relative to the person spending it, and for some people, $499 is steep. Me ten years ago would have had concerns over the price, back during a time when the price of something played a much bigger role in my ability to buy it. Today, however, at the end of the month, once all the bills are paid, my wife and I usually have upwards of $1000 leftover, maybe more.

But those situations are always changing, and maybe ten years from now I'll be broke again, so it all depends on one's situation.

You're not the average person though.  Just recently it was estimated that 4 out 5 US workers live paycheck to paycheck.  So yeah, to the average consumer, in the US anyway, the difference between spending $400 or $500 on a video game system (with no games or extra controller) is indeed a big deal.

The government shutdown spotlights a bigger issue: 78% of US workers live paycheck to paycheck

https://www.cnbc.com/2019/01/09/shutdown-highlights-that-4-in-5-us-workers-live-paycheck-to-paycheck.html



RaptorChrist said:
ptofhearts said:

What I'm trying to say is can't Sony reach a balance between having a powerful enough console for today's standards at a U$399 price tag? Of course more powerful hardware costs more money, but seven years ago a high end console that was the PS4 cost U$399 for consumers, can't a high end console today cost the same? Is it really that advantageous to go as far as to create hardware that will cost U$499?

Until reading through this thread, I had no idea that people would look at $499 as such a high price point. For me, as a consumer, I want to see Sony release the PS5 with super powerful hardware that costs more than what the average consumer would be willing to pay.

Money is relative to the person spending it, and for some people, $499 is steep. Me ten years ago would have had concerns over the price, back during a time when the price of something played a much bigger role in my ability to buy it. Today, however, at the end of the month, once all the bills are paid, my wife and I usually have upwards of $1000 leftover, maybe more.

But those situations are always changing, and maybe ten years from now I'll be broke again, so it all depends on one's situation.

To put it in perspective: I am from Brazil and here, when the PS4 was released, it cost us around U$1000 to buy one officially, which is very, very steep, specially considering our minimal monthly wage at the the time would be around U$229. I bought mine only on February of last year, and I was fortunate enough to be able to afford one at it's U$399 price tag (since the price had been cut by then), which is still steep, as most people here still can't afford it.

A console at U$499 will have a surreal price here in Brazil, and I believe Sony would lose a lot of ground. Besides, there are other things to consider, like is it going to be advantageous for developers to invest more money to develop a high end game to sell it on a console that could potentially have a much smaller userbase, specially at launch?