By using this site, you agree to our Privacy Policy and our Terms of Use. Close
EricHiggin on 27 April 2019
Edit Thread
Mr Puggsly said:
EricHiggin said:

We also had a $499 and $599 PS3 and then a $399 PS4.

I'm just saying the reason PS isn't lowering the price is mostly because they don't feel the need to, not that they can't. The fact that MS is doing so and by considerably less, with games included, means PS is selling enough and making enough, they see no reason to lower the price. However, PS knows they can't hold that price forever, and they also would like to keep making money on the hardware for as long as possible, so creating a PS4 SS makes sense. When sales finally start to drop off consistently, they will have a cheaper console to be able to drop the price and meet all of their targeted goals going forward.

PS isn't worried about a price war, if anything MS is, because when PS4 drops in price, it will likely lead to an XB1S(ADE) price drop, less sales, and less profits. MS is also indirectly influencing PS to drop PS4 prices by offering the SAD edition for $50 lower than the XB1S msrp, which is the same as PS4 now. Prices have to be dropped to continue momentum or to compete, and while PS is willing to give up a little bit before they budge, they won't let sales slip too far without doing anything about it. As for 7th gen, you have a point, considering how expensive PS3 was to manufacture. A price war would hurt PS then and MS wouldn't mind keeping their prices higher than they would otherwise, because it would mean more profit for a time. Until of course sales started to decline because that market had become saturated, so then prices would need to be dropped regardless.

That expensive manufacturing problem doesn't exist today due to the hardware used in both consoles this gen, so the only market factor holding the PS4 price up so high is PS4 sales momentum. When that momentum continues to slip as it has been, PS will eventually lower the price, new model or not. As long as companies see worthy potential growth, they will go after it, and $249 and $199 will no doubt lead to continued growth in sales for PS4 hardware, with lower profits for each one of those sales, yet higher profits overall at the end of the year. With PS5 likely a year away, PS isn't going to allow the momentum they've built up since 2013 to dwindle and hinder their next gen launch.

The problem I see with killing off the XB1S, is that all MS would have left is the SAD edition. That console requires decent internet, and the lower you have to drop the price to sell it, the less likely those buyers are to have worthy internet to use it. It's right back to Mattrick all over again. If you don't have good enough internet, then buy a 360. If you don't have good enough internet for the SAD edition, then buy a PS4 basically.

I'm not sure what your point is exactly, the PS3's high price was objectively a bad idea. Especially when you consider the 360 was doing similar visuals at a lower price.

You don't have to defend Sony, I'm not suggesting they don't have ability to lower the price. I'm saying MS and Sony are happy to not be in a price war. The X1S Digital is almost like a niche option, the real X1S is still officially $299.

Anyhoo, the PS3 and 360 were expensive until the end. I suspect 8th gen could continue that trend.

My point is that PS and possibly MS are going to continue to reduce their 8th gen console prices. PS3 having such a high launch price is a big part of the reason why the hardware never got really cheap. PS1, PS2, and PS4, all had affordable entry prices based on their hardware, so there's little reason for PS not to continue lowering prices with the available late adopter market. $299-$499 next gen consoles with no super slim means leaving a lot of late adopter money on the table. MS may want to leave 8th gen behind more quickly though, so they may not bother with super slims and a $199 msrp. The fact that they didn't change the hardware (aside from removing the drive and slot) in the SAD edition can't help but make you wonder if MS cares much about 8th gen anymore.

I'm not defending anyone, I'm just pointing out what I see happening in the market going forward between both companies. I disagree, and believe that we're going to see a PS4 SS by this holiday at a reduced price. 2013 brought new affordable consoles. 3 years later in 2016, cheaper updated slim versions. 3 years later in 2019, even cheaper updated super slim(s). 2020 new affordable(ish) next gen consoles.

If updated 8th gen hardware is coming, it's definitely coming this year. It won't try to compete in the same year and be quickly overshadowed by next gen hardware. That's why the SAD edition is out now and why an updated PS4 would definitely launch by this holiday season at the latest. Give that hardware one whole year to establish itself then move the focus to next gen hardware. $249 and $199, 8th gen consoles, with the libraries they will have by then, will basically sell themselves at that point.

Last edited by EricHiggin - on 27 April 2019