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Forums - Sony - No $199 Price Drop for PS4 because...

KBG29 on 24 December 2016
DrDoomz said:

Here's an idea: What if Sony just stops making Smart TVs altogether? Just bundle the cheaper non-smart TVs with PS4s (w/c pretty much has the same features as a smart TV anyway and sell both at a very good price point.

Are there important features a smart TV has that a PS4 + non-smart TV wouldn't have?

I know that this is not in-topic, but reading thru the possibility if a 199USD PS4 just made me think about this.

I have a very similar line of thought, but instead of having a PS4 with every TV, I would have the PS4 chipset built into every TV. Right now all of Sony's mid thru high range TV's run on Android, which is a competitive OS to PSOS. If they could in fact sell PS4 for $199.99, then building it into a TV, minus the opticle drive could be done for quite a bit less due to shared components. Then they could have a single company OS on both their TV's and their Set-top Box/Console/PC. 

Both the way you discribed and what I am invisioning would massivly boost the post sale revenue and profit of their TVs. Right now on Android, even if people choose to use PS Vue and PS Video for there movies and TV, Google takes a cut of it. If people choose to use Vudu, Netflix, or Hulu on a Android Sony TV, then Google gets a cut. In the scenarios above, Sony would get more out of each PS Vue and PS Video user, and they would get a cut from other subscription users as well. 

Finally, if each Bravia TV sold also had PS4 chips and the PS4 OS in it, that would drive the PS4 userbase up even higher, and make it an even more desirable place for developers. This would help bring even more non gaming apps which would add to the broader appeal of the Platform. Then if they just launch a Tablet and a Phone + Handheld based on PS4 when 7nm chips are widley available, they can have nearly every Sony product running on one OS, and from there they will have a massive ecosystem of a couple hundered million users that will be able to grow and sustain the company for many decades to come.



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thismeintiel on 24 December 2016

Man, I remember someone created a thread at the beginning of the gen saying that the PS4 and XBO would never drop below $299. Said something about how there were no more die shrinks left, so costs to manufacture wouldn't ever drop low enough to go below that price. Some agreed, others argued. How wrong that poster was.



 

LivingMetal on 24 December 2016
thismeintiel said:
Man, I remember someone created a thread at the beginning of the gen saying that the PS4 and XBO would never drop below $299. Said something about how there were no more die shrinks left, so costs to manufacture wouldn't ever drop low enough to go below that price. Some agreed, others argued. How wrong that poster was.

Fat Avatar looks familiar.. Hmmmmmmm....



JRPGfan on 24 December 2016
shikamaru317 said:
Both XB1 S and PS4 Slim will be $200 next Holiday. Likely their final price cut, don't see them going lower than that, considering 360/PS3 ended around $200 officially.

Yeah its gonna be 199$ for 2017-2018, then 2019 maybe 149$.

 

thismeintiel said:
Man, I remember someone created a thread at the beginning of the gen saying that the PS4 and XBO would never drop below $299. Said something about how there were no more die shrinks left, so costs to manufacture wouldn't ever drop low enough to go below that price. Some agreed, others argued. How wrong that poster was.

This is just 16nm.... theres 10,7,5 left.

After that? who knows.. but Im sure they ll figur something out.



xl-klaudkil on 24 December 2016
shikamaru317 said:
Both XB1 S and PS4 Slim will be $200 next Holiday. Likely their final price cut, don't see them going lower than that, considering 360/PS3 ended around $200 officially.

Ps3 is officially  180 here but why it never  got to 150-100 is because  the cell costed a huge amount  of money and expensive  to make.

 

Ps4/x1 wont have that problem soo it can easily  drop lower then  200



 

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Pinkie_pie on 24 December 2016

Will sony be losing money on each ps4 sold at $199?



derpysquirtle64 on 24 December 2016
KBG29 said:
DrDoomz said:

Here's an idea: What if Sony just stops making Smart TVs altogether? Just bundle the cheaper non-smart TVs with PS4s (w/c pretty much has the same features as a smart TV anyway and sell both at a very good price point.

Are there important features a smart TV has that a PS4 + non-smart TV wouldn't have?

I know that this is not in-topic, but reading thru the possibility if a 199USD PS4 just made me think about this.

I have a very similar line of thought, but instead of having a PS4 with every TV, I would have the PS4 chipset built into every TV. Right now all of Sony's mid thru high range TV's run on Android, which is a competitive OS to PSOS. If they could in fact sell PS4 for $199.99, then building it into a TV, minus the opticle drive could be done for quite a bit less due to shared components. Then they could have a single company OS on both their TV's and their Set-top Box/Console/PC. 

Both the way you discribed and what I am invisioning would massivly boost the post sale revenue and profit of their TVs. Right now on Android, even if people choose to use PS Vue and PS Video for there movies and TV, Google takes a cut of it. If people choose to use Vudu, Netflix, or Hulu on a Android Sony TV, then Google gets a cut. In the scenarios above, Sony would get more out of each PS Vue and PS Video user, and they would get a cut from other subscription users as well. 

Finally, if each Bravia TV sold also had PS4 chips and the PS4 OS in it, that would drive the PS4 userbase up even higher, and make it an even more desirable place for developers. This would help bring even more non gaming apps which would add to the broader appeal of the Platform. Then if they just launch a Tablet and a Phone + Handheld based on PS4 when 7nm chips are widley available, they can have nearly every Sony product running on one OS, and from there they will have a massive ecosystem of a couple hundered million users that will be able to grow and sustain the company for many decades to come.

Maybe it is possible but it's not gonna happen anytime soon. PS4 needs cooling system for its chip. And selling TVs with cooling system is not a good idea. I agree that it will be a good idea to get rid of Android but maybe they should just port PS4 OS to ARM chips used in their TVs instead. Bundle TVs with dualshock and have PS Now app for gaming. That's something they can really do right now with current technologies. I'm really surprised that they haven't done this by now despite all the rumors at the beginning of this gen that Sony wants to go in a cloud gaming direction. But we all see that PS4 is a beast so maybe there is no need to push cloud gaming right now



 

JRPGfan on 24 December 2016
Pinkie_pie said:
Will sony be losing money on each ps4 sold at $199?

The guys that designed it did a great job tbh.

Its at 249$ and makeing profit, even in the holidays when it went to 212$, I doubt that was at a loss.

Ive mentioned it before, but this is where that 20$ extra it costs to put in a UHD blu-ray drive will hurt MS.

I bet the Xbox One Slim costs more to make, than the PS4 Slim, and not just due to the UHD drive.

I think 2017 you ll see normal price hit 199$, and maybe in 2018 you ll see a 149$ price on the PS4 slim.

 

*edit:  When they launched it at 299$ everyone was saying it was too high, that it was probably designed to launch at 249$.

Im pretty sure theres still profit on hardware sales at 199$.



AsGryffynn on 24 December 2016
shikamaru317 said:
Both XB1 S and PS4 Slim will be $200 next Holiday. Likely their final price cut, don't see them going lower than that, considering 360/PS3 ended around $200 officially.

I agree. It's to be expected to some extent... 

 

And I am sure the production costs in bulk for the Xbox One S allow for a $199 price tag, though their revenue definitely will be lower than the dirt cheap PS4 Slim... 



drkohler on 24 December 2016
AsGryffynn said:

..And I am sure the production costs in bulk for the Xbox One S allow for a $199 price tag...

Please explain to me, in detail, why iSupply (we are not even talking production costs, we are talking manufacturing costs) estimated manufacturing costs at around $310 in its detailed teardown of the XBox Slim. I'm really curious to see why you think MS can make a profit selling the product at $199.