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Forums - Sony Discussion - Sony: "There will be a limited quantity of PS5 consoles available for pre-order"

Oh yeah, Ps5 can’t sell more than PS4 during launch period even tho they will release miles morales and ratchet and clank during launch window, also having 2 SKUs for $399 and $499.

Yeah, right......!!!



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meanwhile in japan the 3ds outsold the ps4 this week



Typical Sony, artificially increasing demand by purposefully not producing an unlimited amount of consoles at launch. They're like the Nintendo of consoles.



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vivster said:
Typical Sony, artificially increasing demand by purposefully not producing an unlimited amount of consoles at launch. They're like the Nintendo of consoles.

How dare Sony not have 160M PS5 ready by launch.



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DonFerrari said:
vivster said:
Typical Sony, artificially increasing demand by purposefully not producing an unlimited amount of consoles at launch. They're like the Nintendo of consoles.

How dare Sony not have 160M PS5 ready by launch.

Honestly, if I were sony, I would attempt to totally radicalize how consoles are sold. The clear goal with any console platforms to get as many consoles in people's hands as possible. What I would do is something like this.

Taking the digital SKU, and say that has a BOM of $420. And say for this "promotion" I would allocate 40M "PS+) consoles to be shipped within the first 18 months.

Now what I would do is have gamers pay only $199 for a PS+ "locked" console. However, unlike the normal PS+, this one would require that you pay $15 every month to have it usable. And for 24 payments (not months). And you in turn get "free" PS+as long as the console is activated. You however can't even play the games on the console unless it's activated, even if they are offline games.

But where this differs is that these payments are not going to be tied to your PS+ account. They are tied to the console, and you having PS+ while using the console is just a bonus and anything the linked account downloads while using the console stays on that account. The reason for this is that there would be no pressure on you to pay that $15/month. And if you decide to sell that console, whoever gets it would have however many months left of activation to still be paying $15/month until those 24 payments are completed.

Now the financials. 50M consoles would cost sony $21B. They get $199 from each sale so its actually costing them $11B. They get some kinda partner financial institution to write ff that $11B as some sort of loan. Over those 24 payments, they are making $360 per console (which men's they are selling that console for $560 and a theoretical 2 years of PS+). From those payments, they make an additional $18B. More than enough to pay off that financial institution while still making a profit of at $4B ( $18B - $11B loan - loan interest).

I would really like to know why they haven't or don't do something like this.



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Intrinsic said:
DonFerrari said:

How dare Sony not have 160M PS5 ready by launch.

Honestly, if I were sony, I would attempt to totally radicalize how consoles are sold. The clear goal with any console platforms to get as many consoles in people's hands as possible. What I would do is something like this.

Taking the digital SKU, and say that has a BOM of $420. And say for this "promotion" I would allocate 40M "PS+) consoles to be shipped within the first 18 months.

Now what I would do is have gamers pay only $199 for a PS+ "locked" console. However, unlike the normal PS+, this one would require that you pay $15 every month to have it usable. And for 24 payments (not months). And you in turn get "free" PS+as long as the console is activated. You however can't even play the games on the console unless it's activated, even if they are offline games.

But where this differs is that these payments are not going to be tied to your PS+ account. They are tied to the console, and you having PS+ while using the console is just a bonus and anything the linked account downloads while using the console stays on that account. The reason for this is that there would be no pressure on you to pay that $15/month. And if you decide to sell that console, whoever gets it would have however many months left of activation to still be paying $15/month until those 24 payments are completed.

Now the financials. 50M consoles would cost sony $21B. They get $199 from each sale so its actually costing them $11B. They get some kinda partner financial institution to write ff that $11B as some sort of loan. Over those 24 payments, they are making $360 per console (which men's they are selling that console for $560 and a theoretical 2 years of PS+). From those payments, they make an additional $18B. More than enough to pay off that financial institution while still making a profit of at $4B ( $18B - $11B loan - loan interest).

I would really like to know why they haven't or don't do something like this.

something like https://www.xbox.com/en-US/xbox-all-access



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TheBraveGallade said:
meanwhile in japan the 3ds outsold the ps4 this week

That has nothing to do with the thread. It's well known that both Sony as well as MS have switched production lines to next gen and both have shortages in different regions. There is a famitsu thread for this comment so I would suggest you use that instead. 



Any one remember the PS2 launch in North America with the "limited" 500,000 units available? Sounds like a 20 year recurrence.



kirby007 said:

something like https://www.xbox.com/en-US/xbox-all-access

Exactly. But kinda different.

MS has you paying @$25/month for the XB1x a total of $600. But its still a geat way to get in use at the end of the ay all you are doing is paying $25. On the other hand, MS can do something like this because they probably have lots of inventory just sitting there and have a smaller base.

If only did something like that, they would likely sell well over 40M consoles n a year. And someone has to pay for those 40M+ plus consoles. And I also feel asking for $25/month muddies the math.

If sony instead makes you pay $15/month which also gives you free PS+ and a downpayment of $199. Then they solve all that. First off, you are paying a total of $560 for a PS4 digital console over a two year period. But you are also saving $120 for two years worth ofPS+ subscriptions so your real cost is $440. 

Having you pay $199 to get the consol means sony s only really writing off ~$220 on every new console sold that way. As opposed to MS zero down approach which means they ould be writing off all $420 (approximated BOM of PS5DE). For 40M consoles, that's a $22B write off vs an $11B write off. And that would also require a larger monthly payment over 24 payments.

The math is sound and seems like a no brainer would really like to know what stops them from doing stuff like this. Hell, don't do it for 40M consoles and they can try it for like 15M consoles instead. Call it a Founders edition launch special that is only done for the first 6 months after launch. And adjust accordingly.



Intrinsic said:

The math is sound and seems like a no brainer would really like to know what stops them from doing stuff like this.

Maybe they have a better mathematician than you'll ever be?

Seriously, selling a $500 console for $199 is so outlandishly outlandish, any further discussion is moot.