Xbox Empire

[Nu-13]

haxxiy said:

Nu-13 said:

How exactly do you see $599 as likely? Specs seem a little above the rumoured ps5 specs (likely retailing for $499), so there shouldn't be a big gap in costs either. Retail price difference between the two would be $50 assuming both companies are selling their system at a small loss/breaking even. But MS could be more than willing to take a bigger loss and match the retail price. Not that I think either of those prices is good, just observing what is more likely.

I mean, even the $499 PS5 should already be taking a $50 - $100 loss when you factor in assembling and retailer margins, if we extrapolate from the PS4 and the Xbox One.  Even a mildly bigger XSX APU, with how expensive the 7 nm process is, means at least a $50 added cost on top of it. And that's being generous, considering how costs baloon with increasing die sizes.

Besides, consider Lockhart. It has a smaller APU, but the costs of all other necessary components put together should come closer to the BoM of the PS4 itself, back when it launched. I don't think Series S is retailing for less than $349 - $399. There must be a reason Microsoft thinks this console has to exist, after all.

Edit - like I said, I don't think it's impossible. But both companies can always bring prices down later on, while they would be mutually harmed with a price war at launch. Sony has pulled such shenaningans in the past, but the console business was more of a showcase for CD/DVD technology to them than a profitable business on itself.

That's a huge overestimation.