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Forums - Gaming Discussion - Why I don't see the PS4 and the X1 going below $300 price tag for a long time

They better hope so. The competition wants nothing to do with a $299 PS4.



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BeElite said:
Sonys good at shrinking their hardware and dropping price.

PS4 slim in 2016 at 199 !!!!


a "slim" model, yes

a 199 pricepoint - no way

 

299



The X1 will likely get more affordable soon, to avoid premature death. PS4 will follow.



they ally should get a price cut.(less than 300$) good for sales and good for gamers.



If a long time is 2-3 years, sure, it'll be a long time. And in reality, Sony cost of manufacturing is probably going to go down quicker than MS.

While they will both benefit from AMD reducing the prices on their chip manufacturing, since MS needs far fewer chips because of lower sales, they will always have to pay a higher price per chip than Sony, even though MS is already using a cheaper GPU as their base. DDR3 probably isn't going to get much cheaper than it is, now. I've even heard some theorize that it may actually go up in price as more move towards GDDR5 and DDR4. Their largest savings will be if the ESRAM they are using drops in price. Of course, with so few using that design, I don't know how fast that will happen.

Sony, on the other hand, gambled on GDDR5 and it's paid off. As more graphics cards switch to that type of RAM, the prices will begin to plummet. Also, the reverse of MS's situation, because of much higher sales, and therefore more units needed, Sony will pay a much lower price per unit.

In the end, one will switch to $349 next year. Either Sony because manufacturing costs have dropped, and want to bring even more heat to MS. Or MS to try and stay competitive. In 2016/17, we will 100% see both consoles at $299. And once the PS4 reaches $299, look out.



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It will be Max 350 by Nov next year... But that would be normal. So how long are you talking about?



BeElite said:
Sonys good at shrinking their hardware and dropping price.

PS4 slim in 2016 at 199 !!!!

Doubt it ...



Why I don't plan on buying a PS4 or XBO for a long time.



While industry has indeed hit sort of a wall with 28nm, I think there are other components where Sony can cut the cost...so I think $299 should be reasonable to expect in late 2015.



Intrinsic said:
All the processors in the PS4 costs around $121. The APU alone probably cost them around $100 of that amount. That APU as it stands probably costs AMD less than $20 to make and are being sold (for now) at a $80 profit.

They have arrangements; like milestones. So Sony may be paying AMD a fixed amount for the first 20M APUs, then after that, as per contract, the next 30M APUs would be a different lower price. Thats kinda how stuff like that works and something Nvidia doesn't do too well which is why everyone kinda tries to avoid having to deal with nvidia.

Besides, the APU, there are many other areas that can bring costs down. Take the RAM. THe PS4s RAM cost them $88 right now. But those terms were made at a time when the GDDR5 ram modules sony were trying to use weren't even a mass market item yet. As time goes on and with more and more GPUs coming with larger memory sizes, costs of those will also go down too. By this time next year sony could very well be paying like half of what they pay right now for it.

Lastly, they don't really have a choice. By the middle of next year while we may not see a direct price drop, we will see soft price drops. Think destiny PS4 bundle @$399 which would kinda mean a $50 price drop from what it will sell for now. By the fall of 2015 we would have flat out price drops to $299 with no bundled in games. And around 2016 we will see another soft price drop and a full drop again in 2017. By 2017 I expect these consoles to be around $199-$249.

Especially if someone is doing much much better that the other, the loser will be more aggressive with price drops forcing the winning platform to respond in kind. This couldn't happen with the PS3/360 gen cause the PS3 was $200+ more expensive than the 360 right outta the gate.

I highly doubt that the APU costs less than $20 to make. If anything it should be around $130. Sure a 350mm^2 die is nothing of a behemoth compared to a 500mm^2 die but it should still be the most expensive component on board. I also Highly doubt AMD is getting much of any profit judging from their balance sheet ...

Just because their is a contract between AMD and Sony like that doesn't mean that manufacturing costs will improve. 

Memory costs also won't significantly go down due to the fact that they also depend a lot on the silicon to make that happen. 

I don't expect a price drop to $299 until 2016 ... 

I don't think Microsoft is going to act insane like how Sony did with their PS3 pricing. Microsoft are smarter than that.