By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Sony - PS4 Initial Cost Analysis (GAF / Beyond3D)

ethomaz on 21 February 2013
TheLastStarFighter said:
It's some good ballpark stuff with, as has been said, some stuff missing. When you factor in Sony selling at a loss, but retail stores marking it up, it's going to be around $499, give or take a bit. More acceptable than $599 but not close to the $299 "mass market acceptance" price. But that's OK. It will start slow and gradually come down in price and increase market share like the PS3.

In my opinion they should have priced it lower and spec'd it lower and tried to get the mass-market sooner, but I don't think the machine will "fail" at this price. It just makes it harder to become the market leader.

Well I can't see neither Nextbox or PS4 releasing at $299 pirce tag... the market and consumers are expecting something close to $399 for these consoles (not for a Wii U).



Around the Network
scottie on 21 February 2013
ethomaz said:
I think the HDD ($20) and ARM ($5) is too high but they forgot the PSEye and the controls.


From my understanding, these things are based off costs on sites such as newegg?

 

The cheapest harddrives on newegg are $60 (for a 500 gb hard drive)

 

Now, of course there are discounts for buying in bulk, but that discount is at best going to take it into the $38-50 range, where are you getting $20 from?



Somini on 21 February 2013

Don't forget though, this is what it may cost NOW, the PS4 will release in 8 or 9 months from now. A lot of it's parts will be cheaper by then.



Weedlab on 21 February 2013

That's fine. Got 500 sitting here already and I'll be saving between now and holiday 2013.



 

Playstation = The Beast from the East

Sony + Nintendo = WIN! PS3 + PSV + PS4 + Wii U + 3DS


Chark on 21 February 2013
scottie said:
ethomaz said:
I think the HDD ($20) and ARM ($5) is too high but they forgot the PSEye and the controls.


From my understanding, these things are based off costs on sites such as newegg?

 

The cheapest harddrives on newegg are $60 (for a 500 gb hard drive)

 

Now, of course there are discounts for buying in bulk, but that discount is at best going to take it into the $38-50 range, where are you getting $20 from?


Sony would purchase straight from the manufacturers. They don't just get bulk discounts. They get better than wholesale.



Before the PS3 everyone was nice to me :(

Around the Network
ethomaz on 21 February 2013

scottie said:

Now, of course there are discounts for buying in bulk, but that discount is at best going to take it into the $38-50 range, where are you getting $20 from?

Well all depends of what model... I was thinking in a 250GB or 320GB HDD.



Max King of the Wild on 21 February 2013

what is other?



ethomaz on 21 February 2013

Added the estimated PS3 cost for comparison...



 



scottie on 21 February 2013

@ Chark - that is what I meant to say (bulk, from manufacturer, thus avoiding the cut that goes to newegg or whoever. This still does not cut the price from $60 to $20, the $38-50 number still seems reasonable.

@ ethomaz - I don't think that a $250 or 320 gb hard drive will be any cheaper than a $500, infact, possibly more expensive. Nobody really wants a $250 gb hard drive anymore, thus they need to be specially made - you lose the advantage of a bulk manufacturing process.

Look at Acer (worst PC manufacturer ever?)

Ultrabooks http://www.acerstore.com.au/acer/store/index.php/notebook/ultrabook/aspire-s3.html - 500 gb hard drive (or 256 gb flash drive)

notebooks - a $549 notebook, 500 gb hard drive http://www.acerstore.com.au/acer/store/index.php/notebook/everyday-value-2/aspire-e1.html

Going to $250-320 gb will not reduce costs.



TheLastStarFighter on 21 February 2013
ethomaz 0 minutes ago
TheLastStarFighter said:
It's some good ballpark stuff with, as has been said, some stuff missing. When you factor in Sony selling at a loss, but retail stores marking it up, it's going to be around $499, give or take a bit. More acceptable than $599 but not close to the $299 "mass market acceptance" price. But that's OK. It will start slow and gradually come down in price and increase market share like the PS3.

In my opinion they should have priced it lower and spec'd it lower and tried to get the mass-market sooner, but I don't think the machine will "fail" at this price. It just makes it harder to become the market leader.

Well I can't see neither Nextbox or PS4 releasing at $299 pirce tag... the market and consumers are expecting something close to $399 for these consoles (not for a Wii U).

Expecting $399 (or above), yes, but they won't pay it.  Not most people anyway.  Early adopters will, but most people want games and a cheaper price to buy a system.  $399 is the absolute maximum they can launch at for significant market penetration, but I expect it will be at least $450.  I'm saying if I were Sony I would have gone with 4gig, some other cheaper parts and launched at $399 and tried to get it to $299 asap.  Looking at PS2 it was $299 and quickly moved to $199 within two years - that's a big reason it sold so much. And it did fine without the extra hardware that XBox had... not even a hard drive.  Even accounting for inflation, $450 and above is too high to be mass market. Even $399 means 30% inflation in 13 years, which is too much.