BOLD PREDICTION: PS5 and PS5D to be $399 and $349 respectively

[VAMatt]

DonFerrari said:

VAMatt said:

Re-read my comment and try again. 

I didn't say anything about MS making more money from subs than Sony.  I didn't talk about profit at all.  My comment mentions revenue only.  It's a stone cold fact that MS is significantly more dependent on subscriptions for revenue than Sony.  

If MS makes less profit from their subs than Sony then they would have less money available from it to subsidize the console.

MS has massively more money available than Sony to do whatever they want.  But, that's not what I said, and it's not relevant in a case where both companies have sufficient access to cash to cover a reasonable subsidy.  What I said is that MS gets more of *their revenue* from subs than Sony does (which is a fact).  Therefore, it makes more business sense for MS to subsidize a console than it does for Sony.  MS is more likely than Sony to make that subsidy money up in the long run through subscriptions.

Also, I said that Sony is in a stronger position in the market right now.  More people are PS fans than XB fans.  And, all else being equal, that larger group of PS fans is more likely to choose PS over XB next gen.  Therefore, Sony has less to gain from a big subsidy.  If MS wants to pull people from the big group of PS fans to XB next gen, a big subsidy would help with that.  Sony could also pull XB users to PS with a subsidy.  But, there are a lot fewer potential people to pull over.