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Intrinsic on 20 August 2020
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shikamaru317 said:
Intrinsic said:

And sony would just sit there and let that happen? Impossible.

Sony would not have the weaker console and still be the most expensive. That is something sony cannot spin.

If Sony announces pricing first and then Xbox price matches the discless PS5, there isn't alot Sony can do about it until after the Holiday. If they try and lower the price after announcement but before release, they have to face the negative PR of trying to rip off consumers with a higher price than they could afford to sell at during a pandemic, so they would basically be forced to stay at that price at least until early 2021. That is why they are playing pricing chicken with one another currently, neither wants to announce first out of fear of getting caught with their pants down and letting the other pull a 2013 pricing mic drop on them.

Sony can either keep waiting to announce price in the hopes that MS will break the stalemate first, or they can take a preemptive move and announce digital PS5 at $400, which would be a pretty big loss for them per console sold (likely close to a $100 loss per console), but would be low enough that MS likely wouldn't be willing to price match them with the more expensive Series X. 

Completely agree.

With the digital PS5, I think sony can and is willing to take a much bigger loss than most can imagine. Don't forget that with the PS3 sony was taking a $250+ loss per console and at a time that hey didn't have PS+ or digital sales.

My estimates have sony taking as much as $70 loss on every PS5DE sold if they are aiming for a $399 price point. But if they really want to kill off MS, they could price the PS5DE as low as $349 and be taking like a $120 loss per console sold. With the added benefit of growing their install base faster than any PS console ha ever done. 

Probably helps that NAND flash prices have dropped drastically during this pandemic due to oversupply. Though that probably has more to do with why sony could increase their fiscal yearPS5 order o 10M and less to do with them pricing the PS5DE at $349 lol.