(Update) Rumor: PlayStation 5 will be using Navi 9 (more powerful than Navi 10), new update Jason Schreier said Sony aim more then 10,7 Teraflop

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Intrinsic said:

BraLoD said:

People tend to forget Sony/MS will be buying components in the millions of units from the get go.

If I buy 3 of something in the market I can already get a discount. Imagine if I buy 5 milion units at once and the vendor knows I may be needing to buy up to 100M in the next five years? Sony and MS probably gets massive amounts of discount on anything they put in their consoles, specially Sony as the PS consoles are basically guaranteed to go around 100M units made.

What you have said can't be stressed enough. 

This is also why pretty much no one likes doing business with nvidia.... thats because  they don't take that whole bulk purchases thing into account. Other companies charge you less because you need a lot and will need a lot more.... nvidia charges you more when they see you need more or anything extra rom them for that matter.

But less so then this gen.

This gen AMD was pretty dependent on the income from the consoles until 2018 (took a while until Ryzen could really take off), which means Sony and Microsoft had a very dominant position to haggle the prices. Now, with Ryzen and Epyc being huge hits and the money rolling in, they won't be inclined to lower the prices nearly as much as they did this gen - simply because they don't have to anymore.

Really, the rumors were that AMD was gaining less then 1$ per chip sold for the PS4 and XBO consoles in 2016 and 2017, and they only agreed to such prices since they had to buy enough wafers from GlobalFoundries, which otherwise would have cost them even more.

But now that's not a problem anymore, and AMD is sustaining itself from the CPU market alone by now, giving them a much better position in the price negotiations then they were last gen. AMD will want to make some bucks out of the deal this time around and not just use them to stay afloat, that's for sure.

Besides, the official prices you'll see are always only valid if you buy at least 1000 of them, not for single chips. Hence why the price for the consumer varies quite a bit between the different shops and suppliers. Also, using the prices from some leaks for the Zen2/Ryzen 3 as basis is very flawed, especially since after just a little scrutiny those prices are impossibly low (AMD wouldn't be able to clear their stock of hardware anymore the moment they'd announce them, undercutting their existing hardware by over 50% in most cases).