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Forums - Sales - Analyst predicts: Xbox One at $400; PlayStation 4 at $350 + BOM for each console

MoHasanie on 03 June 2013

The PS4 prediction doesn't seem right to me. I expect it to be at least $400. I can however agree with Xbox 1's price since its bundled with the Kinect.



    

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Jinova on 03 June 2013
MoHasanie said:
The PS4 prediction doesn't seem right to me. I expect it to be at least $400. I can however agree with Xbox 1's price since its bundled with the Kinect.


There are rumors floating around now suggesting that the PS4 eye wont be bundled and if the Xbone is subsidized with a subscription, these numbers might not be too far off.



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Metroid33slayer on 03 June 2013

What is BOM? why does everyone have to be so lazy and abbreviate everything? half the time i have no idea what anyone is talking about it is like a foreign language.



zumnupy10 on 03 June 2013

$350 would make PS4 hard to buy close to launch.



JWeinCom on 03 June 2013
Daisuke72 said:

I read an article the other day, saying that AMD was making $60 - $80 for each chip inside of Next Gen consoles.

The PS3 has 7850 performance level($170 for consumers) and don't forget that it's an APU so the CPU and the GPU are one, meaning they're paying around $80 for the CPU+GPU.

The 8GB of RAM once discounted I'm guessing is at around another $80 or $100 at most. Card makers can afford to pump out cheat GDDR5 cards nowadays, just not in the quantity of 8GB's on one chip, but after discounts this seems plausible.

The Motherboard should add on around another $40 or so, then the Hard Drive is another $50, and then the dualshock should be around $15, and then the actual case should be around $10 - $15 and then the actual manufacturing process should only cost around $30 per console.

80+80+40+50+15+15+30 = $310 in material costs is my estimate. Sony will then prolly give it to retailers for $280 per console, and then retailers will make the mark up to $350, so I'd be willing to bet Sony would be taking a $30 loss on every console, which isn't significant and actually pretty good for a console at launch.

Seeing as how most launch games will be internally developed, Sony would be making around $48 on every launch game sold, so they'd make their money back pretty quickly. ($48 goes to Sony and the other $12 goes to the retailer, but in reality Sony will actually pocket around $38 per copy sold with $10 per copy going towards the developers next project.)

As for Microsoft, I'm pricing their APU at $60. Their RAM at $40. Their ESDRAM at $10, their Hard drive at $50, their motherboard at $40, their case at $10-15, their controller at $15, and Kinect 2.0 as a whole at $80 and then to actually produce the console at $30 per console.

MIcrosoft said the original Kinect takes $56 to make, the new Kinect I assume will have it's own processor, much more advanced tech, and a 1080P camera, I assume they made the original Kinect cheaper to manufacture, that's why I'm going with a generous price of Kinect 2 ONLY costing $80, in reality it could range from $80 - $120. No way in HELL the Xbox's one production cost is that low with Kinect included. 


60+40+10+50+40+15+15+80+30 = $340.

I see Microsoft giving it to retailers at $360 per unit, and they'll mark it up to $400, making the Xbox One instantly profitable. I see them having a more expensive console because of how ambitious the console itself is, and how arrogant they are.


Retailers in heneral do not make a profit off of gaming consoles.  Retailers pay what customers pay and make money off games/accessories.



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zumnupy10 on 03 June 2013
Metroid33slayer said:
What is BOM? why does everyone have to be so lazy and abbreviate everything? half the time i have no idea what anyone is talking about it is like a foreign language.


1º BOM =  "Bill of Materials" and it's often abbreviated.

2º Thread titles have a 75 characters limit on VGchartz.

I realize English isn't the native language of many VGchartz members(Like me). So I try not to abbreviate things the most I can, but it wasn't possible this time.



Daisuke72 on 03 June 2013
JWeinCom said:
Daisuke72 said:

I read an article the other day, saying that AMD was making $60 - $80 for each chip inside of Next Gen consoles.

The PS3 has 7850 performance level($170 for consumers) and don't forget that it's an APU so the CPU and the GPU are one, meaning they're paying around $80 for the CPU+GPU.

The 8GB of RAM once discounted I'm guessing is at around another $80 or $100 at most. Card makers can afford to pump out cheat GDDR5 cards nowadays, just not in the quantity of 8GB's on one chip, but after discounts this seems plausible.

The Motherboard should add on around another $40 or so, then the Hard Drive is another $50, and then the dualshock should be around $15, and then the actual case should be around $10 - $15 and then the actual manufacturing process should only cost around $30 per console.

80+80+40+50+15+15+30 = $310 in material costs is my estimate. Sony will then prolly give it to retailers for $280 per console, and then retailers will make the mark up to $350, so I'd be willing to bet Sony would be taking a $30 loss on every console, which isn't significant and actually pretty good for a console at launch.

Seeing as how most launch games will be internally developed, Sony would be making around $48 on every launch game sold, so they'd make their money back pretty quickly. ($48 goes to Sony and the other $12 goes to the retailer, but in reality Sony will actually pocket around $38 per copy sold with $10 per copy going towards the developers next project.)

As for Microsoft, I'm pricing their APU at $60. Their RAM at $40. Their ESDRAM at $10, their Hard drive at $50, their motherboard at $40, their case at $10-15, their controller at $15, and Kinect 2.0 as a whole at $80 and then to actually produce the console at $30 per console.

MIcrosoft said the original Kinect takes $56 to make, the new Kinect I assume will have it's own processor, much more advanced tech, and a 1080P camera, I assume they made the original Kinect cheaper to manufacture, that's why I'm going with a generous price of Kinect 2 ONLY costing $80, in reality it could range from $80 - $120. No way in HELL the Xbox's one production cost is that low with Kinect included. 


60+40+10+50+40+15+15+80+30 = $340.

I see Microsoft giving it to retailers at $360 per unit, and they'll mark it up to $400, making the Xbox One instantly profitable. I see them having a more expensive console because of how ambitious the console itself is, and how arrogant they are.


Retailers in heneral do not make a profit off of gaming consoles.  Retailers pay what customers pay and make money off games/accessories.


Retailers do make some money from the console being sold itself, although what you said about software is correct, there's still a very small mark-up on the actual hardware that make it profitable for the retailer.

 

Edit: I just looked up some insider info, retailers really don't make more than $10 off consoles sold and they buy it at almost consumer level prices. So with that being said, I can see the PS4 w/o PS Eye going for $350 and the nextbox going for $400. 



Augen on 03 June 2013

If either are sub $400 and have a decent hard drive (one terabyte) then I will be very impressed.



radiantshadow92 on 03 June 2013

350$ dosnt sound impossible but unlikely



Zero999 on 03 June 2013

Even if the estimated bill of materials is right, unless the consoles are made in fullmetal alchemist style, the final price is higher due to fabrication costs. there's also the profit retailers need.