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Sony is focusing on Hard-Core Gamers for PS5

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If its true there is no way Sony will sell it at under 500 bucks without having a lost in its first years.



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CuCabeludo said:

I believe Sony will sell the PS5 with loss, at minimum a 100 bucks loss. It will take at least 2 years after PS5 launch for it to have a production cost lower than the sell price.

That was the standard.

PS4 was the first time they were able to break even at launch with only a game plus PS+ subs. And in like 1 year were already breaking even on the HW alone.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

DonFerrari said:
CuCabeludo said:

I believe Sony will sell the PS5 with loss, at minimum a 100 bucks loss. It will take at least 2 years after PS5 launch for it to have a production cost lower than the sell price.

That was the standard.

PS4 was the first time they were able to break even at launch with only a game plus PS+ subs. And in like 1 year were already breaking even on the HW alone.

No doubt that, both sony and ms will take losses with their next consoles for at least 2 years. MS can take such losses easily, but for Sony which depends a lot on their gaming department, it will be a heavier task.



CuCabeludo said:
DonFerrari said:

That was the standard.

PS4 was the first time they were able to break even at launch with only a game plus PS+ subs. And in like 1 year were already breaking even on the HW alone.

No doubt that, both sony and ms will take losses with their next consoles for at least 2 years. MS can take such losses easily, but for Sony which depends a lot on their gaming department, it will be a heavier task.

Depends how you look at it, Sony as a whole or just the games division. PlayStation posted a $2.87 Billion operating profit last fiscal year, so they could sell 28.7m consoles at a $100 loss before wiping out that years profit.

The forecast for this Fiscal year is $2.55 Billion operating profit. They're raking in enough money that they can afford to take a hit.

Personally however I don't think the PS5 will be sold at a significant loss, not $100 per unit anyway. I expect a $500 price-tag and under $600 to produce.

Edit: After seeing that the PS4 sold at a $60 loss I've changed my mind. PS5 may possibly lose more than $100 per unit.Will be easier to guess when we know full specs. Is it an APU? How much RAM? Size of SSD? HDD? etc.

Last edited by Barkley - on 02 July 2019

Predictions (Made July 2019)

LTD: PS4 - 130m, Switch - 110m, XBO - 52m       2019 : PS4 - 15m, Switch - 18.8m, XBO - 4.8m        2020: Switch - 22m (Peak Year)


CuCabeludo said:
DonFerrari said:

That was the standard.

PS4 was the first time they were able to break even at launch with only a game plus PS+ subs. And in like 1 year were already breaking even on the HW alone.

No doubt that, both sony and ms will take losses with their next consoles for at least 2 years. MS can take such losses easily, but for Sony which depends a lot on their gaming department, it will be a heavier task.

I expect Sony to have a 600 USD box selling between 400-450 pricetag.

If BraLoD is right, which he never is since every game show he says LoD remake or sequel will show up, them it would be a 700 machine sold at 500.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

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CuCabeludo said:
DonFerrari said:

That was the standard.

PS4 was the first time they were able to break even at launch with only a game plus PS+ subs. And in like 1 year were already breaking even on the HW alone.

No doubt that, both sony and ms will take losses with their next consoles for at least 2 years. MS can take such losses easily, but for Sony which depends a lot on their gaming department, it will be a heavier task.

Sure, MS can. Xbox, however, can not.  I think this is the reason we've been hearing lately that the PS5 is more powerful. MS is going to have a decent box, but they don't want to lose a bunch of money on HW, so I think they'll launch at break even, maybe a slight loss. Sony, on the other hand, is more willing to take larger losses up front, since gaming is a big division for them. Gaming for MS is a much smaller focus, and gaming HW even smaller, hence them taking a bigger leap into streaming and PC gaming, as of late.

I think the most likely outcome is that they will both launch at $499, but with Sony taking a larger loss, they will have the more capable HW.



thismeintiel said:
CuCabeludo said:

No doubt that, both sony and ms will take losses with their next consoles for at least 2 years. MS can take such losses easily, but for Sony which depends a lot on their gaming department, it will be a heavier task.

Sure, MS can. Xbox, however, can not.  I think this is the reason we've been hearing lately that the PS5 is more powerful. MS is going to have a decent box, but they don't want to lose a bunch of money on HW, so I think they'll launch at break even, maybe a slight loss. Sony, on the other hand, is more willing to take larger losses up front, since gaming is a big division for them. Gaming for MS is a much smaller focus, and gaming HW even smaller, hence them taking a bigger leap into streaming and PC gaming, as of late.

I think the most likely outcome is that they will both launch at $499, but with Sony taking a larger loss, they will have the more capable HW.

Well it have been over 10 years that we have been hearing MS infinite money would win they a generation, it have been 3 loses already.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

DonFerrari said:
thismeintiel said:

Sure, MS can. Xbox, however, can not.  I think this is the reason we've been hearing lately that the PS5 is more powerful. MS is going to have a decent box, but they don't want to lose a bunch of money on HW, so I think they'll launch at break even, maybe a slight loss. Sony, on the other hand, is more willing to take larger losses up front, since gaming is a big division for them. Gaming for MS is a much smaller focus, and gaming HW even smaller, hence them taking a bigger leap into streaming and PC gaming, as of late.

I think the most likely outcome is that they will both launch at $499, but with Sony taking a larger loss, they will have the more capable HW.

Well it have been over 10 years that we have been hearing MS infinite money would win they a generation, it have been 3 loses already.

Microsoft have infinite hatric on losing 



CuCabeludo said:
DonFerrari said:

That was the standard.

PS4 was the first time they were able to break even at launch with only a game plus PS+ subs. And in like 1 year were already breaking even on the HW alone.

No doubt that, both sony and ms will take losses with their next consoles for at least 2 years. MS can take such losses easily, but for Sony which depends a lot on their gaming department, it will be a heavier task.

I think xbox is the one whit problems here. They have spend lots of money whit new studios and banking on gamepass ( they sure are losing money whit $1 deals and day 1 exclusives). Also, xbox sure isn't as focused in "selling hardware" as playstation, i mean look at Phill spencer recent comments about "selling consoles" and the "play anywere" thing.

Truly feels like Playstation is much more focused on making you buy their console than xbox, and at the same time people need to remember that xbox don't have unlimited acess to MS money, investiments on new studios, gamepass and new console sure are going to hurt.

Last edited by Manlytears - on 02 July 2019

Prediction: In 5 years Nintendo will Lauch a "Core Mario game"  very similar to Astro Bot. That said, many will Ignore Astro Bot existence and say Nintendo created this concept.

CuCabeludo said:
DonFerrari said:

That was the standard.

PS4 was the first time they were able to break even at launch with only a game plus PS+ subs. And in like 1 year were already breaking even on the HW alone.

No doubt that, both sony and ms will take losses with their next consoles for at least 2 years. MS can take such losses easily, but for Sony which depends a lot on their gaming department, it will be a heavier task.

Subscriptions to various services are making it more financially tenable to take those early losses though, especially when they can rely on subscriptions from prior console generations to make that division look financially better.

It's going to be interesting to see if they will take a financial hit on each unit shifted or not.

thismeintiel said:

Sure, MS can. Xbox, however, can not.  I think this is the reason we've been hearing lately that the PS5 is more powerful. MS is going to have a decent box, but they don't want to lose a bunch of money on HW, so I think they'll launch at break even, maybe a slight loss. Sony, on the other hand, is more willing to take larger losses up front, since gaming is a big division for them. Gaming for MS is a much smaller focus, and gaming HW even smaller, hence them taking a bigger leap into streaming and PC gaming, as of late.

I think the most likely outcome is that they will both launch at $499, but with Sony taking a larger loss, they will have the more capable HW.

Xbox can... Seems Microsoft has opened it's checkbook up and is gearing up for next-gen, hence the purchasing of all the studios recently and holding things back for next-gen.
But they still need to answer to shareholders, so they certainly do still have limits and restrictions.

Plus Microsoft tends to roll other aspects into it's "Gaming division" to make that division seem more lucrative anyway, helps that division is also partly buoyed by the PC too... So they can get away with more than people realize thanks to clever accounting.

DonFerrari said:

Well it have been over 10 years that we have been hearing MS infinite money would win they a generation, it have been 3 loses already.

The 6th gen was probably regarded as a failure due to the massive financial hits they received.

But despite coming in 3rd during the 7th gen... Nintendo, Microsoft and Sony were all incredibly successful, Microsoft made Billions and I would not regard that generation (Or any generation where a manufacturer shifts 70+ million consoles!) a failure.

The 8th gen is a bit of a step back, but I doubt we can regard that as a failure either, subscriptions to various schemes has made it a financially sound generation even if it wasn't a roaring success like the Playstation 4.

Manlytears said:

I think xbox is the one whit problems here. They have spend lots of money whit new studios and banking on gamepass ( they sure are losing money whit $1 deals and day 1 exclusives). Also, xbox sure isn't as focused in "selling hardware" as playstation, i mean look at Phill spencer recent comments about "selling consoles" and the "play anywere" thing.

Truly feels like Playstation is much more focused on making you buy their console than xbox, and at the same time people need to remember that xbox don't have unlimited acess to MS money, investiments on new studios, gamepass and new console sure are going to hurt.

Microsoft likely has the appropriate data to get a good gauge on how long a person is a paying subscriber to gamepass at this point, so having $1 gamepass entries is likely a short-term hit for a longer-term financial haul... Plus the more subscribers they get hooked into this gen, they will probably hope those customers translates over to next-gen.

What will be truly interesting is if Sony takes a similar approach to Gamepass in the future, then Microsoft will likely start to feel some competitive pressure on that front.