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Forums - Gaming Discussion - Is the market ready for a $500 console yet?

 

What should the PS5 & Xbox 4 cost at launch?

$500 (high specs) 45 60.81%
 
$450 (moderate specs) 8 10.81%
 
$400 (low specs) 21 28.38%
 
Total:74

Some act like it is the difference between affordable and putting a loan against a house.

If 500 is too much for you then so is 400.



Hunting Season is done...

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SKMBlake said:
Inflation has no effect whatsoever on what people are willing to put in a console. 500$ is way too high

500 USD is way to cheap if you consider how inflation work form 2007. Do you want PS5 to be weak console ??? Everything cost money , and the price is reasonable, PS4 is too cheap with just 400 USD. 

Hell the problem with PS3 is expensive because their competitor can do the same thing with much more cheaper price, If Xbox One X is 500 USD and why not PS5 that will be 2,5 times stronger??? 



Zoombael said:
Some act like it is the difference between affordable and putting a loan against a house.

If 500 is too much for you then so is 400.

It is not about being affordable or not and only a difference of $100.

It is a mental thing, people set a price what they think a gaming box is worth. Don't matter what you put in it, they won't buy it.

Now a dedicated gamer in general does not have those kind of stupid mental limitations because they know the value of the specs.

In this scenario we are talking general market. Your common casual gamers.

Compare this to mobile phones, some of them are what $600-1000 now? A lot of people upgrade them every new model release. They believe that the upgrade is justified.

In their head they probably thinking.

- I must have the latest for my social media posts

- Oh latest camera better pictures of my ass to put on Instagram, must have the best to get more followers.

- Oh i can listen to music whilst traveling

- Watch netflix or whatever

- Oh I guess i can still make calls



 

 

I would pay more for more beefy specs. Console also last for 4-6 years.



Intel Core i7 8700K | 32 GB DDR 4 PC 3200 | ROG STRIX Z370-F Gaming | RTX 3090 FE| Crappy Monitor| HTC Vive Pro :3

No.

Despite enthusiastic Xbox gamers who go off of zero data, they'll tell you that the $500 One X is doing "moderately well" or some other damage control escapist catch phrase.

I work at an electronics store in Salt Lake City, UT. On Black Friday, everyone was buying PS4 Pro's and Switch's. We sold out of both. Nobody bought a One X - not one damn person through out that day. Those are pretty shitty odds in a city that has a census of almost a million people - even considering that we're just "one" electronics store in a city, there's no excuse for that kind of disparity except for one singular reason:

People, generally speaking, don't want to spend $500 on a console EVEN IF the hardware justifies it. (Which the One X does, cuz it's a beast) And the people that do have already done so by investing that money into a "gaming PC"

The story won't be ANY different if the PS5 and X2 launch at $500 - regardless of how appealing the tech is. Because at the end of the day - it's the kids Mom's that are buying the console if they're 17 or younger.



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Conina said:
Mandalore76 said:

Why are people bring up the cost of phones as if it is remotely relatable?  Your monthly phone plan pays for most of the cost of the device.

Mine doesn't. Most people who can calculate the total costs of a phone contract will buy the phone separately.

Yeah, it's often way cheaper. Especially if you don't want to upgrade your phone as soon as your provider allows for it, because then you're basically paying extra for nothing.



Bofferbrauer2 said:
Conina said:

Mine doesn't. Most people who can calculate the total costs of a phone contract will buy the phone separately.

Yeah, it's often way cheaper. Especially if you don't want to upgrade your phone as soon as your provider allows for it, because then you're basically paying extra for nothing.

Yep most people will buy the phone outright because they know it is cheaper. They sell their old one off.

For those asking why I mention mobiles.

It is all about perceived value what drives the spending cost of a item for the general consumer.

Playing games is not a high need for most of the console sales. Hardcore gamers who value tech over price is a very small market.



 

 

Shadow1980 said:
SKMBlake said:
Inflation has no effect whatsoever on what people are willing to put in a console. 500$ is way too high

This is an incredibly unsound argument that ignores basic realities of economics and economic history.

A new Toyota Camry started at about $16,400 25 years ago. That's about $28,000 today. To rephrase your argument for a car buyer from 1994, "Inflation has no effect whatsoever on what people are willing to put in an automobile. $20,000 is way too high." Except $20,000 isn't way too high by historical standards, and a new Camry starts at about $25,000 now, a bit less than a 1994 model.

Inflation matters.

$300 is dirt cheap for a console today. It was a bit exorbitant 30 years ago, because a dollar was worth twice as much. Assuming inflation stays about constant, a $500 PS5 will be only 11% more expensive than the PS4's adjusted launch price. Hardly bank-breaking. It's not like going from the PS2 ($438 adjusted) to the PS3 ($631 adjusted, 44% higher than the PS2 and 45% higher than the PS4).

You can't compare consoles to other stuff. That's my main point. Of course inflation matters. But it's irrevelant when it comes to consoles and general gaming.

Consoles have almost one and only purpose, which is gaming, and peoples doesn't want to spend more than 400$ just for gaming, because the games are already expensive enough (+game as a service stuffs). If the minimum you can get is 500$ + 60$ for one and only (AAA) game, that's way too much.

Remember, it's only for gaming. Not other purposes. You can access Hulu, Netflix, Prime Video and stuff on other devices almost everyone own.

Why AAA games doesn't cost 80-100$ then ? Because publishers know people won't buy it



"Quagmire, are you the type of guy who takes 'no' for an answer ?"
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SKMBlake said:
Shadow1980 said:

Inflation matters.

$300 is dirt cheap for a console today. It was a bit exorbitant 30 years ago, because a dollar was worth twice as much. Assuming inflation stays about constant, a $500 PS5 will be only 11% more expensive than the PS4's adjusted launch price. Hardly bank-breaking. It's not like going from the PS2 ($438 adjusted) to the PS3 ($631 adjusted, 44% higher than the PS2 and 45% higher than the PS4).

You can't compare consoles to other stuff. That's my main point. Of course inflation matters. But it's irrevelant when it comes to consoles and general gaming.

I call bullshi+ on that.

Of course you can (and should) compare the costs of console gaming to the costs of other forms of entertainment. You can compare it to the costs of PC gaming, mobile gaming, yearly/monthly/hourly costs of going to the cinema or theatre, costs of access to movies and TV-shows at home, costs for other hobbies like photography, pimping your ride, collecting stuff, skiing trips, other vacations, etc.

Console gaming ain't in a bubble. A big (and still growing) part of popular smartphones and tablets is the entertainment sector... otherwise almost nobody would need the flagship models when even the $100 devices can handle all the basic functionalities of their much more expensive brothers.

Of course everyone has preferences in his/her entertainment spendings, but even if many people set themselves an arbitrary limit for the price of a console, most of them will at least unconsciously compare the value with similar forms of their entertainment and with the added value to the predecessor console (f.e.: "only 1/x loading times, only double the price. This time I don't even have to buy a handful launch titles at full price, there are a lot of great PS4 titles for $10-$20 I haven't played yet, all improved on the PS5")

Last edited by Conina - on 19 April 2019

SKMBlake said:
Shadow1980 said:

You can't compare consoles to other stuff. That's my main point. Of course inflation matters. But it's irrevelant when it comes to consoles and general gaming.

Consoles have almost one and only purpose, which is gaming, and peoples doesn't want to spend more than 400$ just for gaming, because the games are already expensive enough (+game as a service stuffs). If the minimum you can get is 500$ + 60$ for one and only (AAA) game, that's way too much.

Remember, it's only for gaming. Not other purposes. You can access Hulu, Netflix, Prime Video and stuff on other devices almost everyone own.

Why AAA games doesn't cost 80-100$ then ? Because publishers know people won't buy it

N64 games have costed that much before, and modern games + DLC or season pass are there or above these values already. It might not happen the next year, but medium term the prices will rise to $70 - 80 with almost certainty.