Why the Scorpio will sell for no more than $399 (if its 6tflops).

[Drakrami]

Fei-Hung said:

Machiavellian said:
MS will probably respond to the price of the PS4 Pro. If MS was on top in market share then I can see the Scorpio coming in around 499+ but with the Pro, MS probably will come in at 449. The reason is because MS is not the leader and they are looking to gain as much market share as possible. They probably will take a hit, still market the Scorpio as premium, reduce the price of the X1s to 249 and go from there. Personally I am wondering what partners MS will use for their VR solution since they continue to say the console was made for that market.

I don't think they can that easily try to match price without taking a bit. You have to remember MS have very likely signed a contract with AMD to buy a certain processor and GPU that they can't back out from unless they are willing to pay a penalty.

 

They have already stated clearly what the bandwidth will be which they can't go back on either meaning there is no cost saving to be made there. 

 

The only way MS can compete on price will be through incurring heavy losses which isn't something they will be willing to do. 

 

They have been very clear when stating the Scorpio will be a premium system with a premium price tag. 

Finally, some common sense on the internet. Scorpio is probably MS's last comeback strategy to win back market share. If they failed, they aren't going to focus on the console market anymore. You can always see it in the cards... with the investment they make in gaming developments, they have already streamlined their investment a lot. There has always been rumors that Microsoft wants to drop the console. And Microsoft even openly says Scorpio is the last console generation. 

So they are put in an extremely awkward position with the PS4Pro, at this price point, and this early release date. 

Satya is not going to greenlight Scorpio incurring big losses per console when they are already in such a weak marketshare position.