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Forums - Gaming - How much does a ps4 cost Sony to make?

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JRPGfan on 03 March 2017
Kerotan said:
Thanks for all the replies. Enjoyed reading them

http://www.neogaf.com/forum/showthread.php?t=1349203

Alot of europe has the PS4 slims at 199 euro right now.

Totally coincidental that its on the same day as the Switch launches.... Im sure.


I suspect when the Scorpio launches, at 399-499$ sony will cut the PS4pro to 249-299$.

"I walked into the store to get a scorpio, I walked out with a PS4pro".



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Turkish on 03 March 2017
KBG29 said:
The current model I think will drop to $199.99 in 2018. Then I expect a PS4 Super Slim, PS4 Pro Slim, and PS4 Premium. PS4 Super Slim will come in at $149.99 for holiday 2019. I think the Pro Slim will be $299.99 & the Premium will be $499.99 at launch. I think in the end as SSD tech becomes cheaper than HDD GB for $, the original PS4 spec will eventually reach $99.99 in the US before being retired in 2023. Then PS5 will be released in 2024.

Lol that is never gonna happen.

1. The PS4 will reach $199 by the end of the year, Sony lowering the price to 199 euro at Switch launch demonstrates that they can do it even now

2. PS5 will come out in 2019, or 2020 at the latest

3. this gen lasting a full 10 years will only happen in your dreams, not in reality

4. PS6 coming out in 2025-2026 with much better specs sounds a lot better than keeping ps4 artificially alive for a decade and delaying innovation by sticking to 2013 specs

You're mistaken that they need 25TFLOPZ to hit true next gen graphics and you're mistaken 4K is the only thing people care about. If they dont release a new console in a timely manner they risk losing customers to competitors, or worse lose them to smart devices. It's not all about TFLOPZ or to satisfy the 1% it's also about keeping the market healthy and vibrant.



Kerotan on 03 March 2017
JRPGfan said:
Kerotan said:
Thanks for all the replies. Enjoyed reading them

http://www.neogaf.com/forum/showthread.php?t=1349203

Alot of europe has the PS4 slims at 199 euro right now.

Totally coincidental that its on the same day as the Switch launches.... Im sure.


I suspect when the Scorpio launches, at 399-499$ sony will cut the PS4pro to 249-299$.

"I walked into the store to get a scorpio, I walked out with a PS4pro".

Yeah I can see them significantly upping manufacturing of the Pro for this holiday and onwards.  A combination of the pros parts naturally becoming cheaper and the increase in production driving the cost per unit down I can see the Pro getting a price drop to $299 this fall. 

 

And a temporary holiday price cut to $199 / €200 before they permanently drop it to that in 2018. 

 

Sony hold all the aces. 



Ruler on 03 March 2017

launch PS4 made 20$ profit for 400$



Why i left PC gaming

 

(2015) Question for PS4 owners: if the situation would be reverse? would you still play on PS4?

(2015) The "I don't care PS4 is the most powerful console" thread

DJjazzyGETH on 03 March 2017

While I doubt it's true anymore, I'm sure at launch any profit Sony was making on hardware itself was probably razer thin. For all players involved (Sony & retail) selling the consoles themselves isn't nearly as profitable or important as the software and subscriptions, which is probably one of the main reasons Sony made PS+ mandatory for multiplayer. If they can assume >50% of PS4 buyers will add an extra $50-$60 to their purchase, especially on something Sony doesn't have to manufacture, well then there goes any question of PS4's profitability. Throw in a couple game sales and each PS4 is a healthy, profit-making machine.

So it's not out of the realm of possibility for Sony to be making very little on each PS4 sold, it doesn't matter all that much. Though I agree nowadays thanks to cheaper parts and a cheaper slim model, they probably don't spend as much on hardware as they used to.



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Intrinsic on 03 March 2017
DJjazzyGETH said:

While I doubt it's true anymore, I'm sure at launch any profit Sony was making on hardware itself was probably razer thin. For all players involved (Sony & retail) selling the consoles themselves isn't nearly as profitable or important as the software and subscriptions, which is probably one of the main reasons Sony made PS+ mandatory for multiplayer. If they can assume >50% of PS4 buyers will add an extra $50-$60 to their purchase, especially on something Sony doesn't have to manufacture, well then there goes any question of PS4's profitability. Throw in a couple game sales and each PS4 is a healthy, profit-making machine.

So it's not out of the realm of possibility for Sony to be making very little on each PS4 sold, it doesn't matter all that much. Though I agree nowadays thanks to cheaper parts and a cheaper slim model, they probably don't spend as much on hardware as they used to.

Yes at launch sony wasn't making more than $20 on each PS4 sold. Probably even a little less.

But with every PS4 revision (and before the slim there were already 3 SKUs releasesed 1000/1100/1200) the overall cost of manufacturing gets cheaper. But sony left the price as is which was mostly due to how welll it was selling. 

As it stands right now, sony could just as easily be selling the PS4 for as little as $199 on the current sku and still be making a profit of around $5-$10. But why do that now when they can be making as much as $30-$40 on each console sold? By this fall though that will change. Sony doesn't have any new hardware to push. So they are gonna go hard on pushing what the have on the market. 

A $199 PS4 will make for a very hot holiday item this fall..... and thats not even factoring that it would come with a bundled first party game or two. Any third party bundle would go for around $220-$250 this holiday.



merman on 03 March 2017
KBG29 said:
RolStoppable said:

$199 is going to be the lowest the PS4 will go on a permanent basis, because the PS2 days are long over. The PS4 comes with capabilities like storage and wi-fi out of the box, so price points of $149, $129, let alone $99 aren't realistic for home consoles anymore.

 I don't think it is all that far fetched. PS4 is using the most generic parts we have ever seen on a console. The whole thing is made of industry standard tech. This stuff is all going to become dirt cheap by 2020. A PS4 with a 7nm APU, 512GB m.2 SSD, and a case the size of the PS2 Slim, will easily retail under $199.99. Sony wants PS4 in every household, and they are going to get this thing as low as possible. I would not be surprised if they put out a PS4 without a Blu-ray drive at some point that was made directly to compete with Amazon Fire TV and Apple TV. 

You have to remember that PS4 is the only horse Sony has in the race. Bravia and Xperia are not running on thier OS, so they are just place holders to keep the Sony name floating around in the mobile, and TV markets. The ultimate goal is to build the PS4 OS and Ecosystem so big, that they can bring the OS to their other devices, and continue to drive revenue and profit growth for decades to come. They have to get PS4 in as many homes as possible, to be able to offer an app and services lineup that rivals what we see on Android, iOS, and Windows devices.

i like your 'theories' about the PS4 everytime you post.

i like that you say it as if its a fact 



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Ariakon on 03 March 2017
RolStoppable said:

Certainly more than $200 at the moment. Some people look at bill of materials (BoM) estimates and completely forget that assembling, packaging and shipping comes at a cost too, plus the marketing money that is spent on advertising the hardware needs to be made back as well. Just like games need to made back their development, packaging and marketing costs in order to be profitable.

$199 is going to be the lowest the PS4 will go on a permanent basis, because the PS2 days are long over. The PS4 comes with capabilities like storage and wi-fi out of the box, so price points of $149, $129, let alone $99 aren't realistic for home consoles anymore.

Needless to say, today's €199 offer in Europe means that these PS4s will be sold at a notable loss, but that's of course expected to pay off down the line, because the customers are buying games and possibly paying for PS+ for a few years.

This seems very realistic, otherwise we would be seeing huge profits from hardware in Sony's quarterly reports. Their gaming division is doing extremely well at the moment, but a lot of that profit seems to come from PSN itself. It's likely that the actual profit for hardware sold is quite low, but they are gaining enough from adding users to offset any loss from temporary sales such as the one in Europe. Still, the Slim has seemed to cut the costs quite a bit, as they seem much more willing to price drop it than they were the OG ps4. 



monocle_layton on 04 March 2017

People don't understand that Sony can't (probably won't) drop the PS4 to 200 permanently this year. They did it to try to squeeze out users who opted for a PS4 instead of a Switch. chances are it'll only hit 200 this year for big things like Black friday, scorpio release, christmas, etc.