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Forums - Sales Discussion - Which next gen full power console will be cheaper?

 

Which next gen full power console will be cheapest?

PS5 without disc drive 39 63.93%
 
PS5 2 3.28%
 
Xbox Series X 20 32.79%
 
Total:61
method114 on 20 August 2020
Vinther1991 said:
method114 said:

It's been very shocking to me the amount of people who don't realize how much Sony is saving with DE version. It seems all anyone thinks about is the disc drive and that's it. There's a reason MS tried to push no more used games this gen and it's not out of kindest of their hearts. Everyone knows how much money is being lost via the used game business. This is Sony's attempt to casually move people away from that system without forcing anyone. Genius move and one that MS should have implored this gen to avoid all the controversy.

- no disc drive 

- required to purchase everything through the Sony store which means more money for Sony and less to retailers

- No more used games (this is massive) Sony makes no money off of used games purchases. 

Over the life of the console this adds up to much more than $100. In fact if you still purchase a fair amount of used games than the $100 you are saving is nothing compared to what you save with the disc version + used games. I don't purchase used games anymore I'm all digital.

Sony has already won the war against retailers. They do not need to worry about people primarily buying physical, digital sales has already overtaken physical sales by a large margin and that trend will continue, no matter how Sony prices their consoles. The downsides of physical sales for Sony have essentially been eliminated. I can barely find any physical games where I live any longer, the retailers are either gone, or are only selling a small selection of the newest titles. Used games I would have to buy online, and pay a shipping cost that isn't worth it. Other countries might still have more physical sales, but not for long.

So your points 2 and 3 don't favour a disc-less console so much anymore.

Things that might make the disc version preferable to Sony are:

1. They still get royalties from Blu-ray films, even if it has become a niche market.

2. Collectors editions of games can be sold at high prices, to those who care for those.

I don't know what country you live in but I can find used games all over the place here. Walmart and 3 gamestops all within 20-30 mins of me. I live in the USA we are by far the biggest gaming market (China is close) and every state has used games all over the place. Also sales vary I've paid $60 for games off the PSN store that were $30 or less at gamestop, walmart, etc. A person with a disc drive has options. Each time they choose anything but the PSN store during the life of that console is lost money for Sony. Think about what I just said. I paid $60 for a game that I've seen on sale for $30 physical at the store. Do you understand how much money that can add up to all over the USA?

With a digital console now Sony can better project how much money they will make off you. They can average how many games someone buys of the life of the console and factor that into the cost. They can't do that with a console that has a disc drive.

1. No one cares about Bluray's that's a dying market. Why would Sony invest in a dying market they are thinking of the future not the past.

2. Collectors editions is a very niche market getting even have your user base to be all digital would be worth far more.



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Intrinsic on 20 August 2020
shikamaru317 said:

I still think MS will aim to price match the cheaper discless PS5. Going higher than it feels like suicide, especially with Halo delayed. I'm thinking we'll see something like:

  • Series S- $300
  • Series X- $450
  • Digital PS5- $450
  • PS5- $500

I don't think either is stupid enough to go above $500 on any model, especially in the middle of a global pandemic that is reducing expendable income for a great many people. Put I also don't think either corporation is willing to sell at a huge loss on launch, like they would be doing buying selling any of the 3 high end consoles at $400. 

And sony would just sit there and let that happen? Impossible.

Sony would not have the weaker console and still be the most expensive. That is something sony cannot spin.



ThatDreamcastTho on 20 August 2020
Intrinsic said:
shikamaru317 said:

I still think MS will aim to price match the cheaper discless PS5. Going higher than it feels like suicide, especially with Halo delayed. I'm thinking we'll see something like:

  • Series S- $300
  • Series X- $450
  • Digital PS5- $450
  • PS5- $500

I don't think either is stupid enough to go above $500 on any model, especially in the middle of a global pandemic that is reducing expendable income for a great many people. Put I also don't think either corporation is willing to sell at a huge loss on launch, like they would be doing buying selling any of the 3 high end consoles at $400. 

And sony would just sit there and let that happen? Impossible.

Sony would not have the weaker console and still be the most expensive. That is something sony cannot spin.

Nobody cares who has the weaker console. If you look at the history of consoles, the most powerful console always fails. Neo Geo, N64, OG XBox, PS3. Most people that like Xbox games have already moved on to PC gaming. Sony's first party exclusives can not be played anywhere else, and they will take advantage of the new hardware. Why would you spend the same amount of money on a Series X when you can play those same games on PC? I think hardcore gamers are going to have a gaming PC, a PS5, and a Switch to be able to play everything. Casuals will go for PS5 and/or Switch. If XBox doesn't match the discless PS5 on price this is going to be their last traditional console and push for games as a service and cloud instead.



Intrinsic on 20 August 2020
ThatDreamcastTho said:
Intrinsic said:

And sony would just sit there and let that happen? Impossible.

Sony would not have the weaker console and still be the most expensive. That is something sony cannot spin.

Nobody cares who has the weaker console. If you look at the history of consoles, the most powerful console always fails. Neo Geo, N64, OG XBox, PS3. Most people that like Xbox games have already moved on to PC gaming. Sony's first party exclusives can not be played anywhere else, and they will take advantage of the new hardware. Why would you spend the same amount of money on a Series X when you can play those same games on PC? I think hardcore gamers are going to have a gaming PC, a PS5, and a Switch to be able to play everything. Casuals will go for PS5 and/or Switch. If XBox doesn't match the discless PS5 on price this is going to be their last traditional console and push for games as a service and cloud instead.

I don know why you are talking about power... the point here is the price.

Sony would be stupid to have the most expensive launch console on the market that also happens to be weaker than the most powerful console. A $499 PS5 vs a $449 XSX would just be an all-round bad look for sony and would shift a lot of moment in Microsoft direction.



Intrinsic on 20 August 2020
shikamaru317 said:
Intrinsic said:

And sony would just sit there and let that happen? Impossible.

Sony would not have the weaker console and still be the most expensive. That is something sony cannot spin.

If Sony announces pricing first and then Xbox price matches the discless PS5, there isn't alot Sony can do about it until after the Holiday. If they try and lower the price after announcement but before release, they have to face the negative PR of trying to rip off consumers with a higher price than they could afford to sell at during a pandemic, so they would basically be forced to stay at that price at least until early 2021. That is why they are playing pricing chicken with one another currently, neither wants to announce first out of fear of getting caught with their pants down and letting the other pull a 2013 pricing mic drop on them.

Sony can either keep waiting to announce price in the hopes that MS will break the stalemate first, or they can take a preemptive move and announce digital PS5 at $400, which would be a pretty big loss for them per console sold (likely close to a $100 loss per console), but would be low enough that MS likely wouldn't be willing to price match them with the more expensive Series X. 

Completely agree.

With the digital PS5, I think sony can and is willing to take a much bigger loss than most can imagine. Don't forget that with the PS3 sony was taking a $250+ loss per console and at a time that hey didn't have PS+ or digital sales.

My estimates have sony taking as much as $70 loss on every PS5DE sold if they are aiming for a $399 price point. But if they really want to kill off MS, they could price the PS5DE as low as $349 and be taking like a $120 loss per console sold. With the added benefit of growing their install base faster than any PS console ha ever done. 

Probably helps that NAND flash prices have dropped drastically during this pandemic due to oversupply. Though that probably has more to do with why sony could increase their fiscal yearPS5 order o 10M and less to do with them pricing the PS5DE at $349 lol.



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DonFerrari on 20 August 2020
Intrinsic said:
shikamaru317 said:

If Sony announces pricing first and then Xbox price matches the discless PS5, there isn't alot Sony can do about it until after the Holiday. If they try and lower the price after announcement but before release, they have to face the negative PR of trying to rip off consumers with a higher price than they could afford to sell at during a pandemic, so they would basically be forced to stay at that price at least until early 2021. That is why they are playing pricing chicken with one another currently, neither wants to announce first out of fear of getting caught with their pants down and letting the other pull a 2013 pricing mic drop on them.

Sony can either keep waiting to announce price in the hopes that MS will break the stalemate first, or they can take a preemptive move and announce digital PS5 at $400, which would be a pretty big loss for them per console sold (likely close to a $100 loss per console), but would be low enough that MS likely wouldn't be willing to price match them with the more expensive Series X. 

Completely agree.

With the digital PS5, I think sony can and is willing to take a much bigger loss than most can imagine. Don't forget that with the PS3 sony was taking a $250+ loss per console and at a time that hey didn't have PS+ or digital sales.

My estimates have sony taking as much as $70 loss on every PS5DE sold if they are aiming for a $399 price point. But if they really want to kill off MS, they could price the PS5DE as low as $349 and be taking like a $120 loss per console sold. With the added benefit of growing their install base faster than any PS console ha ever done. 

Probably helps that NAND flash prices have dropped drastically during this pandemic due to oversupply. Though that probably has more to do with why sony could increase their fiscal yearPS5 order o 10M and less to do with them pricing the PS5DE at $349 lol.

It could be both, let's say something like ok if you can make the price drop from 50 to 40 bucks I'll buy 10M instead of 5M.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

jonathanalis on 20 August 2020

PS5 without disk drive
Diskless to be sold at loss.
Forcing only digital, lots of console owners avoiding the preowned market, would be more profitable in the long term, and could compensate the losses of the diskless version manufacturing.



DonFerrari on 20 August 2020
jonathanalis said:
PS5 without disk drive
Diskless to be sold at loss.
Forcing only digital, lots of console owners avoiding the preowned market, would be more profitable in the long term, and could compensate the losses of the diskless version manufacturing.

Yep a lot of us are betting on Sony being aggressive on digital version so they can heap the profits later, plus fight back Series S.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."