These are the most entertaining console launches I have ever followed. I imagine that the strategy meetings at both companies are insane right now.

I would love to know what Sony and Mircrosoft's rock bottoms are. Could Sony go $399.99/$349.99 if Microsoft went $399.99/$249.99? Would it be worth it? Would it be good for the industry?

Personally, I am hoping for;

PS5/XBSX - $499.99
PS5 Digital - $399.99
XBSS - $299.99

I don't want to see either company devalue the hardware, and take a loss leading model. It is not healthy for the business, and does build a good foundation for future Console hardware.

Ideally, I would like to see them launch with these prices, and maintain them until they offer Pro and Slim models a few years down the road. I believe that both companies have a responibility to keeping the industry healthy, and showcasing the true value of the hardware. They should be selling at cost at launch, and then making small profit gains as the generation progresses. Providing a false sense of value, creates unrealistic expectations in the minds of consumers.

If companies are going to manipulate prices, and deceive consumers, it is better that they do it in a way that benefits the industry, and not in a race to the bottom. That is short win for consumers, but a long term loss for the company and the consumer once thing have to be rebalanced.

It is better to reveal the price second if they are going to be close because this way if MS lower their price it will look bad as if they were overpricing when they first announced.

Only way it makes sense to reveal first is if they are absolutely sure MS can't undercut with XSX and Lockhart is much weaker.

From Daniel Ahmad we know that the cost of manufacture for PS5 standard is projected to be 450 and XSX about 480.

From what I am reading online XSS is going to be 199

Series S is going to be $300 or a little lower. BOM for XSX is higher than PS5, that's not viable at all.

I expect XBX to cost around $499 same as PS5. PS5 DE probably be around $100 less.

Do we know the BOM for both consoles?

Dan Ahmed estimative (trusthyworthy) 450 for PS5 and 480 XSX

Thanks, still estimates.   I feel that those info are for the PC parts equivalent. No one knows the customization cost I think.

Yes estimatives, and mostly based on the bulk price manufacturers would pay, size of chips, etc. But yes there is margin depending on custom (either to make it more unique or cheaper).

I see your point and agree, but could the talk of more expensive software allow them to sell the hardware for less than expected possibly?

If PS4 players have on average 10 games, and costs go up $10 per game, that would mean an approx $100 extra going towards PS5. Would SNY simply scoop that all up, or would they sell the hardware for $50 to $100 less than they would otherwise? Would using the higher software price to sell hardware even cheaper, lead to higher profits overall? The sooner hardcore gamers have the console in their hands, the more likely they are to spend more on games. The more gamers who have the console sooner in general, the more time they have to buy games for that console. Not to mention service subscriptions or other media offerings.

*Especially with a recession. It's much harder to get someone to buy a $500 console than it is to buy a $70 game. Would people in this situation rather a $500 console with $60 games, or a $400 console with $70 games?