twintail said:
HollyGamer said:
"He then said that one factor Sony can't control is the "price level" of the next-gen console space. Totoki implies that Sony is waiting to see what the price of the Xbox Series X will be before putting a price on the PS5, so as to be competitive.
"What is not very clear or visible is because we are competing in the space, so it’s very difficult to discuss anything about the price at this point of time, and depending upon the price level, we may have to determine the promotion that we are going to deploy and how much costs we are prepared to pay."
I am not sure if this can be a hint, but i can say that if he said "we are competing in space" it's mean on the same market space with Xbox. Then it can be said that we are competing on the same market and target the same audience . Probably the author of the article just made some assumption but i can see the relation. Well judging by micro economy rule of thumb, a product price can be determined based on cost and competitor. So that's that i guess.
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Reads to me that the author is just making an assumption. MS nor Xbox are ever mentioned. 'Competing in the space' could refer to anything.
Maybe Sony is talking about themselves because they still have the PS4/ PS4Pro which are selling well despite having very little price differentiation from launch, so the PS5 needs to be priced right in relation to the value they offer.
Maybe they talking about how much they are willing to lose on each unit to get a competitive price point, since they seemed to suggest that PSPlus could offset costs.
'competing in the space' could refer to deals with hardware vendors and the competition the have securing parts.
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You are correct. But i can see Xbox price will also affecting directly to PS5 price or vice versa . But indeed it also can be affected by manything (old hardware, service, market situation, etc ) and competitor is just one part of it.
