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Forums - Gaming - PS4s BOM PS4n BOM.... our wallets

Intrinsic said:
iNathan said:
I think Neo will be sold at a low loss with Ps4 Slim making up for the deficit pricing it at 299 would cover that.

Neo is >399e imo.

Thats definately one way to do it. And makes a lot of sense. to bring the cost of Neo as low as possible for the consumer. They charge $299 for the PS4s

They need to make waves.

a 50$ price reduction down to 299$ isnt gonna do that.

a 100$ price reduction down to 249$ (from 349$) will make waves.

Its about selling a sh*t metric ton of them, and then makeing it up via software and services.

Not going to 249$ if its possible could be a mistake, imo.

This needs to be cheaper than the 299$ Xbox One slim.



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Don't forget retailers still need to make some profit on these too, especially with disc sales in constant decline. A console that costs $422 to manufacture (then ship) would probably need to retail at $500 for both parties to profit from it directly. And that's fine by me. New 'premium' consoles launching at $500-450 and dropping roughly $50 a year to where they're $300-350 when they become the baseline and $150-200 when they're on their way out sounds like the sweet spot to me.

Very curious if the slim could actually launch at $250. Really wasn't expecting that, but if they can pull it off this thing will fly off the shelves (and may actually put a damper in Neo sales).



iNathan said:
I think Neo will be sold at a low loss with Ps4 Slim making up for the deficit pricing it at 299 would cover that.

Neo is >399e imo.

That goes against every other business model for electronics. You always charge a premium for the premium model, and break even or make a minimal profit on the lowest end device. This gives the lowest possible entry price, and lets you make money on the people willing to pay big money for the best.

JRPGfan said:
Intrinsic said:

Thats definately one way to do it. And makes a lot of sense. to bring the cost of Neo as low as possible for the consumer. They charge $299 for the PS4s

They need to make waves.

a 50$ price reduction down to 299$ isnt gonna do that.

a 100$ price reduction down to 249$ (from 349$) will make waves.

Its about selling a sh*t metric ton of them, and then makeing it up via software and services.

Not going to 249$ if its possible could be a mistake, imo.

This needs to be cheaper than the 299$ Xbox One slim.

Absoluty spot on. Sony needs to launch the PS4 2000 at $249.99, and then offer a $199.99 special through December. They own the market this holiday with PS4 2000 + PS4 Neo + PSVR vs XBOS, and they need to build as strong as a userbase as possible while Nintendo and MS are prepping for their next moves. Next year is going to be a battle from March through the end of the year. 

TallSilhouette said:

Don't forget retailers still need to make some profit on these too, especially with disc sales in constant decline. A console that costs $422 to manufacture (then ship) would probably need to retail at $500 for both parties to profit from it directly. And that's fine by me. New 'premium' consoles launching at $500-450 and dropping roughly $50 a year to where they're $300-350 when they become the baseline and $150-200 when they're on their way out sounds like the sweet spot to me.

Very curious if the slim could actually launch at $250. Really wasn't expecting that, but if they can pull it off this thing will fly off the shelves (and may actually put a damper in Neo sales).

You nailed it on the head with retail. In a world where Intrinsic is right on with his component costs at $200 & $422, then you are looking at $220/$470 bulk, and $250/$500 to consumer. Retailer is going to pick up $30 on every unit sold, and Sony gets $20/$48 respectivly. This would give them a small profit on the 2000 and a little larger margin on the Neo, right in line with normal business practices.



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So the general consensus is that sony sells the PS4s for $250. That really would be something. Also ties into sony's forecasts of selling 20M consoles this fiscal year. With a price point like that I think that's them low-balling the number.

Looking at the PS4s, I think that box was designed from the ground up to be a mass market seller. I don't even see it as cannibalizing sales of the Neo, especially if the Neo is remotely more expensive to make than what I estimate. Sony wouldn't care what kinda PS4 anyone buys as long as they are buying one.



Looks like Sony has gone the increase profit margins route with PS4 silm. Hope they plow some of that money back into game development.. PS4 silm looks totally unnecessary and ugly. But they have the leverage to pull something like this with their market share.



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PS4s at 249 and PS4n at 399 would be a strong duet for holidays.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

JRPGfan said:
tak13 said:
From the 357 of fat PS4

http://techinsights.com/uploadedImages/Public_Website/Content_-_Primary/Marketing/2013/PS4_vs_Xbox_One/ps4vsxboxone-bom.jpg

Techinsights had the PS4 at launch to cost 339$ to make.

By now it should be alot lower than that.

PS4 BOM at launch was $382 plus manufacturing according to iSuppli, they've been doing it since like the PS2 days.



John2290 said:
17 quid for the controller? I just spent 60 euro this morning on one of them and I've spent 69.99 on one after launch. Fuckers, Thieving fuckers.

You understand how margin works, right?... 



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$250 would rock the industry. PS4 will absolutely dominate this holiday.



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Turkish said:
JRPGfan said:

http://techinsights.com/uploadedImages/Public_Website/Content_-_Primary/Marketing/2013/PS4_vs_Xbox_One/ps4vsxboxone-bom.jpg

Techinsights had the PS4 at launch to cost 339$ to make.

By now it should be alot lower than that.

PS4 BOM at launch was $382 plus manufacturing according to iSuppli, they've been doing it since like the PS2 days.

, im sure if i added things like packaging and shipping it would hsve come up some more. But i just couldnt be certsin cause how these comoanies ship products sre usually based on how much demand there is.