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g911turbo on 12 May 2013
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drkohler said:
Captain_Tom said:
Toddifer said:
So they aren't planning a 'major' loss, which obviously means they may still take a smaller loss on the PS4 initially, which I really wouldn't find surprising. I can understand selling a product below cost, as long as it's not an enormous amount below cost. I'm guessing PS4 will launch at $499 and they'll be taking a $30-$50 loss on each console, which is still significantly below the loss they were taking with the PS3 at launch, I belie


It is projected to only cost around $450-$500 to make.  Expect a $400-$450 price point (Depending on if MS does end up selling their console for a rediculous $500).

So in your small and very naive world, you sell your goods at (or more precisely, below) manufacturing costs?

Toddifer is quite right in his assessment, over the long run. However, the initial batches of consoles usually carry a much higher loss, depending on the planned time span (and batch size) the manufacturers want to recoup costs. My estimate is that initial PS4s carry a production cost around $550-$600 (always keep in mind these complex SoC are completely new and untested so there is quite a risk of extremely low initial yields).

I'm really tired of those people here who say "anything over $299/$399 is too much". For both XBox and PS4, a price of $600 would be more than fair (considering a similarly equipped PC costs you more).


I agree with you on your assessments of intial costs, low yield, etc.  However, MARKET determines the price at which the console will sell.  Sony only determines the asking price.

I also agree with you that 299 is ridiculous.  399 seems to be a sweet spot for keeping that dreaded "4" out of the first number, but it will be difficult for Sony to achieve.  And the comparison to a similarly equipped PC is ridiculous.  I can't update my resume on a PS4, or print, or download millions of pieces of software as I choose, etc.  People pay for perceived VALUE, not hardware.  Despite you knowing that the hardware is beefy, a lot of that is lost on the mainstreem who doesn't give two shits about what's under the hood.  They only care about what the final results are and how much it costs them to get it.

At the end of the day, all these boxes will be gaming/media hubs.  That's why you cannot compare the pricing to cell phones and PCs, since you can actually get real work done on those too.