shikamaru317 said:
Xbox One X was almost certainly selling at a small profit at $500 on launch. It released a year after PS4 Pro and still cost $100 more than PS4 Pro did at launch. Also, it got price drops really quickly, MS wouldn't have been able to afford to do price drops that quickly if XB1 X was being sold at a loss on release or even at cost. So, while Xbox Series X almost certainly has a higher bill of materials than XB1 X did, it's also heavily rumored that MS is planning on selling it at a loss.
While it is true that PS5's chipset will be less expensive than Series X's chipset since it has alot less CU's, you have to remember that it has increased costs coming in other areas:
I wouldn't be surprised if the bill of materials for Series X and PS5 are very close to one another. What will matter is if one or both of them is willing to sell at a loss, unlike this gen where both console were sold at cost at launch ($381 BOM for PS4 and $471 BOM for XB1 back in 2013). Rumor is MS is willing to sell at a loss on Series X, which is also why they reportedly delayed their August Xbox announcements into September, they clearly want Sony to announce pricing first so that they can undercut them or at least price match them. Sony meanwhile will likely be willing to sell the discless PS5 at a loss since digital software sales have higher profit margins for them, but I'm not so sure that they will be willing to sell the disc drive PS5 at a loss as well. We could very well see discless PS5 and XSX coming in at the same price, with disc drive PS5 costing $50 more. |
Best estimates on BOM so far is PS5 about 450 and XSX 480 if I'm not wrong.
duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"
http://gamrconnect.vgchartz.com/post.php?id=8808363
Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"
http://gamrconnect.vgchartz.com/post.php?id=9008994
Azzanation: "PS5 wouldn't sold out at launch without scalpers."