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yvanjean on 02 October 2020
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elazz said:
kazuyamishima said:

A 4K driver is around $40/50 not $10.

Rumours suggested that Sony reduced the BOM to less than $450 for the disc version.

Also, they receive around $36 for every first party digital game priced at $60 and around $10 for every third party game.

You also forget the subscriptions like PS Plus.

And just like the PS4, the BOM will be reduced after a year or so.

Sony receives 70 USD per full price first party game they sell digitally. Studio's get salaries and funding for licenses and equipment, actors etc.

Sony receives around 48 USD per first party physical release. 2 digital games offsets the BOM. 3 games is extra profit.

Based on the price increase. For third party games they get more like a quarter so around 15 to 18USD.

In Europe it is similar but tax is included so digital would be around 65 euros revenue and third party around 16 euros.

You guys need to understand that BOM (Bill of Material) is only the direct cost of production of the consoles. There all the external costs such as marketing, delivery, and overhead. If you consider all does cost it's pretty clear that both Microsoft and Sony are selling these consoles at a loss. This is why competition is good for customers, while these two mega-corporations fights we get to benefit at a lower price. This is what Micheal Patcher is referring to that Sony miss out, especially if you consider that Sony would have sold out all the console this Holiday season at a $450 price point for PS5 all digital.

You clearly don't understand the difference between Revenue and Profit. People in business that actually know what they are talking about said that selling a game digitally net Sony an extra $5-7 which was mentioned by Patcher. The main reason Sony and Third-party want to raise the cost of games to $70 is to combat the rising cost of making games. Since, while Revenue might rise their actual profit is decreasing, and based on the success of the games, some games might actually not recover their actual costs of production.

If Sony can't establish the same massive install base as the PS4 with the PS5 this will mean that every project won't make as much profit. That why Sony ole speel about believes in Generations was stupid because it would have ignored their 100 Million PS4 owners during the transition. Turns out Sony was lying and was just conducting effective deceptive marketing that their fan bought up and regurgitate and spread around as facts.