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Forums - Sales Discussion - Global Hardware 6 July 2019

Mbolibombo said:
curl-6 said:

I don't think it's that bold.

PS4 has been $300 for a long time, I think a drop to $250 then later $200 would bring in a large influx of low budget buyers, and that with PS5 looking to be a $500 proposition, a cheap $200 alternative will do well into 2021 and even 2022 much like PS2 did into 2006 and beyond.

There's also market saturation. The writings are on the wall, PS4 has dropped off significantly this year and I dont think it has much to do with price. I dont think priced down revisions will do as much as some expect. It's definately going to help but we're still looking at 32M+ for hardware, the console market is not the same now as it was when the PS2 was the evergreen console. Though one must consider that it's possible that PS5 takes the early route of PS3 and if that was to happen.. it would definately help the PS4's legs. I dont think Sony will make that mistake again though.

The reason for the drop off? Games. No god of war, no monster hunter.both sold a lot of consoles.



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Mbolibombo said:
curl-6 said:

I don't think it's that bold.

PS4 has been $300 for a long time, I think a drop to $250 then later $200 would bring in a large influx of low budget buyers, and that with PS5 looking to be a $500 proposition, a cheap $200 alternative will do well into 2021 and even 2022 much like PS2 did into 2006 and beyond.

There's also market saturation. The writings are on the wall, PS4 has dropped off significantly this year and I dont think it has much to do with price. I dont think priced down revisions will do as much as some expect. It's definately going to help but we're still looking at 32M+ for hardware, the console market is not the same now as it was when the PS2 was the evergreen console. Though one must consider that it's possible that PS5 takes the early route of PS3 and if that was to happen.. it would definately help the PS4's legs. I dont think Sony will make that mistake again though.

I don't think market saturation will be a limiting factor here as once you drop to $250 and especially $200 you reach whole new segments of the market for whom $300 was too much. I think people are really underestimating how much a pricecut will do for PS4.

And while I don't expect PS5 to repeat PS3's mistakes, I think it's likely to be $500 which would leave room for PS4 to coexist for the first few years of the PS5 as an affordable $200 entry level system.

I find it hard to see it doing less than 130 million lifetime when its nearing 100 million while still selling decently at $300.



Barkley said:
Mbolibombo said:

There's also market saturation. The writings are on the wall, PS4 has dropped off significantly this year and I dont think it has much to do with price. I dont think priced down revisions will do as much as some expect. It's definately going to help but we're still looking at 32M+ for hardware, the console market is not the same now as it was when the PS2 was the evergreen console. Though one must consider that it's possible that PS5 takes the early route of PS3 and if that was to happen.. it would definately help the PS4's legs. I dont think Sony will make that mistake again though.

The reason for the drop off? Games. No god of war, no monster hunter.both sold a lot of consoles.

Certainly to a degree, but by far not enough on their own to cause a drop of 75k in weekly sales. If it were just them, then the drop would have been 20-30k at worst. This is more than twice as much of a drop.



JRPGfan said:
Mbolibombo said:

There's also market saturation. The writings are on the wall, PS4 has dropped off significantly this year and I dont think it has much to do with price. I dont think priced down revisions will do as much as some expect. It's definately going to help but we're still looking at 32M+ for hardware, the console market is not the same now as it was when the PS2 was the evergreen console. Though one must consider that it's possible that PS5 takes the early route of PS3 and if that was to happen.. it would definately help the PS4's legs. I dont think Sony will make that mistake again though.

Going by the "PS4/XBO/NS - 2018 vs 2019" thread, you notice that the PS4 is down ~25% vs 2018.

"I dont think it has much to do with price." -Mboli

Then why did the amazon prime day price drops have such a huge effect on sales? in the US.
Theres clearly still demand, if the price is right. There was like 5-6 sku's of PS4's ahead of the highest ranked Switch sku.
price still plays a huge part.

So I think its too early to say, demand is just down 25% and theres nothing sony can do about it, so this year will only be a ~14m year.

If they do a perm price drop, I'm pretty sure they can get to 16m+ sales.

That's always the case when there are sales, people jump on it - People buy stuff on days like prime day, black friday because they are promoted. If the price drops to 200$ - It's gonna stop the bleeding for a while, possibly even increase in the short term but soon people will wait for another drop and that wont happen.  It's down 25% over the year, but it's escalated quickly over the last few months. It hasnt been a 25% down every month but rather much lower from the start and increasingly as of late. If Sony intends to sell 16M consoles this year, something needs to happen soon and while I expect a drop to happen closer to the holiday either via a super slim or just a pricecut it needs to make up a lot of ground

Barkley said:
Mbolibombo said:

There's also market saturation. The writings are on the wall, PS4 has dropped off significantly this year and I dont think it has much to do with price. I dont think priced down revisions will do as much as some expect. It's definately going to help but we're still looking at 32M+ for hardware, the console market is not the same now as it was when the PS2 was the evergreen console. Though one must consider that it's possible that PS5 takes the early route of PS3 and if that was to happen.. it would definately help the PS4's legs. I dont think Sony will make that mistake again though.

The reason for the drop off? Games. No god of war, no monster hunter.both sold a lot of consoles.

We've seen a lot of high profile games this year and many of them are selling the best in franchise history including KH3 and MK11 is closing in on the record... Days gone is the best selling game of Bend studios, it's the best launch in the UK this year while coming close to both Spiderman and God of War in sales. Other high profile games include Division 2, Sekiro. There's been good games this year. Just not many exclusives.. but we know Xbox aint stealing any sales from the PS4 at least :P

I do however people underestimates how much of an impact Fortnite had on PS4 sales last year. It was a huge factor to how well the PS4 performed last year. That is the biggest game from last year and we have nothing with similar impact this year so I will give you that.

curl-6 said:
Mbolibombo said:

There's also market saturation. The writings are on the wall, PS4 has dropped off significantly this year and I dont think it has much to do with price. I dont think priced down revisions will do as much as some expect. It's definately going to help but we're still looking at 32M+ for hardware, the console market is not the same now as it was when the PS2 was the evergreen console. Though one must consider that it's possible that PS5 takes the early route of PS3 and if that was to happen.. it would definately help the PS4's legs. I dont think Sony will make that mistake again though.

I don't think market saturation will be a limiting factor here as once you drop to $250 and especially $200 you reach whole new segments of the market for whom $300 was too much. I think people are really underestimating how much a pricecut will do for PS4.

And while I don't expect PS5 to repeat PS3's mistakes, I think it's likely to be $500 which would leave room for PS4 to coexist for the first few years of the PS5 as an affordable $200 entry level system.

I find it hard to see it doing less than 130 million lifetime when its nearing 100 million while still selling decently at $300.

A drop will have some impact, but since it's been at that price on occasions before I dont think it will make wonders for it in the longterm. But we'll see.. i have my doubts. 



Mbolibombo said:
curl-6 said:

I don't think market saturation will be a limiting factor here as once you drop to $250 and especially $200 you reach whole new segments of the market for whom $300 was too much. I think people are really underestimating how much a pricecut will do for PS4.

And while I don't expect PS5 to repeat PS3's mistakes, I think it's likely to be $500 which would leave room for PS4 to coexist for the first few years of the PS5 as an affordable $200 entry level system.

I find it hard to see it doing less than 130 million lifetime when its nearing 100 million while still selling decently at $300.

A drop will have some impact, but since it's been at that price on occasions before I dont think it will make wonders for it in the longterm. But we'll see.. i have my doubts. 

It's just, to sell less than 130 million it'd have to sell less than what, 33 million for the entire rest of its lifespan?

I simply can't see that happening when its still $300 and selling well, and its replacement is likely to be expensive thus leaving the door open for Sony to position PS4 as a cheap entry level device for years to come. It probably won't be completely discontinued til 2023 or even later. Even with sales dropping off massively after PS5 releasing, I think it will leg it out comfortably.



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curl-6 said:
Mbolibombo said:

A drop will have some impact, but since it's been at that price on occasions before I dont think it will make wonders for it in the longterm. But we'll see.. i have my doubts. 

It's just, to sell less than 130 million it'd have to sell less than what, 33 million for the entire rest of its lifespan?

I simply can't see that happening when its still $300 and selling well, and its replacement is likely to be expensive thus leaving the door open for Sony to position PS4 as a cheap entry level device for years to come. It probably won't be completely discontinued til 2023 or even later. Even with sales dropping off massively after PS5 releasing, I think it will leg it out comfortably.

Well we wont persuade one another hehe. We will see in a few years :> we're just about a week and a half from the next report which would show the first step at least :P



Fair enough. We'll just have to see where we're at come 2023, haha

Honestly though, if PS4 doesn't get a permanent price cut before this holiday season I'll be shocked. Plus it still has system sellers like TLOU2 and FF7 Remake yet to release. 

Xbox One is on its last legs but PS4 I think still has a ton of gas in the tank.



All of this End of Life PS4 predictions has me wondering when Sony's Q1 results are due. They already shipped 100 million so folks saying that it will top out at 110 are crazy. They are almost guaranteed to be over that by the end of Q4. Going under 120 is like implying that Sony will stop shipping them. They will keep selling them into 2021 or 2022.



CosmicSex said:
All of this End of Life PS4 predictions has me wondering when Sony's Q1 results are due. They already shipped 100 million so folks saying that it will top out at 110 are crazy. They are almost guaranteed to be over that by the end of Q4. Going under 120 is like implying that Sony will stop shipping them. They will keep selling them into 2021 or 2022.

agree strongly, there's no way it stops at 110m, especially when you consider that christmas is a few months away and in Nov and Dec you'll see a boost to PS4 sales where the machine will be doing between 500k and 1m units for around 6 weeks in that period.

110m would require Sony doing something insane in marketing, keep in mind as well... the ps4 is very long overdue a price cut, at this stage the fabrication of ps4 consoles is probably at the highest profit per unit sold that Sony have ever enjoyed, they'll have the ability to cut 50e off that price with ease when sales start to drop down below where they wanna see them.



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CosmicSex said:
All of this End of Life PS4 predictions has me wondering when Sony's Q1 results are due. They already shipped 100 million so folks saying that it will top out at 110 are crazy. They are almost guaranteed to be over that by the end of Q4. Going under 120 is like implying that Sony will stop shipping them. They will keep selling them into 2021 or 2022.

I believe it's usually on the same day as Nintendo has theirs so 30th of July or there about. So we'll see soon enough.

Sony hasnt shipped 100M yet it's at 96.8M as of March 31, would be surprising if they had shipped 3.2M the last quarter I'd say.