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

Intrinsic on 28 August 2020
drkohler said:
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.

They aren't selling a $500 console for $199 in the same way $30k cars aren't sold for $6k. 

The same way $499 XB1X consoles on game pass aren't being "sold" for $25. And yes, MS is doing a version of this very thing already.

It would really be great if you instead chose to just actually read what was said and compare it to what's out there than to think up some stupid smart ass remark and be dismissive instead.

Actually, what you said is so silly that I am not even going to bother explaining this "math" to you. Cause it doesn't seem like you would get it anyways. But if you are going to say it won't work? You could have just said why... at least that would have been a discussion. 



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kirby007 on 28 August 2020
Intrinsic said:
drkohler said:

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.

They aren't selling a $500 console for $199 in the same way $30k cars aren't sold for $6k. 

The same way $499 XB1X consoles on game pass aren't being "sold" for $25. And yes, MS is doing a version of this very thing already.

It would really be great if you instead chose to just actually read what was said and compare it to what's out there than to think up some stupid smart ass remark and be dismissive instead.

Actually, what you said is so silly that I am not even going to bother explaining this "math" to you. Cause it doesn't seem like you would get it anyways. But if you are going to say it won't work? You could have just said why... at least that would have been a discussion. 

i think he is ignoring its actually the 199+ 15x24, just like all access is 25x24



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Intrinsic on 28 August 2020
kirby007 said:
Intrinsic said:

They aren't selling a $500 console for $199 in the same way $30k cars aren't sold for $6k. 

The same way $499 XB1X consoles on game pass aren't being "sold" for $25. And yes, MS is doing a version of this very thing already.

It would really be great if you instead chose to just actually read what was said and compare it to what's out there than to think up some stupid smart ass remark and be dismissive instead.

Actually, what you said is so silly that I am not even going to bother explaining this "math" to you. Cause it doesn't seem like you would get it anyways. But if you are going to say it won't work? You could have just said why... at least that would have been a discussion. 

i think he is ignoring its actually the 199+ 15x24, just like all access is 25x24

Yup. He must have missed that part.

If we take a hypothetical 30M PS5DE consoles that has a MSRP of $399.

To the consumer:
PS5DE: $199 + ($15 x 24 payments) = $560 [the value in this is consumer gets "free" PS+, so what they are paying at the end of those two years is $440]

To Sony:
PS5DE @$420 BOM x 30M = $12.6B
$12.6B - $6B ($200 downpayment x 30M) = $6.6B (initial write off/loss)
$360 ($15 x 24 payments/console) x 30M = $10.8B 

That means that for a $6.6B initial loss or loan, (sony can get that kinda money from any number of financial institutions) and even with a 20% interest on that loan, sony still ends up making a profit of around $2B from all that. And we can assume that those 24 payments are completed per console in an average of 36 months.

The math lines up. And the benefit of being able to grow your user base by as much as 30M+ in the first year alone with a digital-only bias is undeniable. And as you pointed out, this is very similar to what MS is doing, just that MS is completely removing the barrier of entry and instead of charging more monthly. And the best part of a write off like this is that sony isn't even losing anything. The banks are the ones making the investment to get 20% profit return on said investment. For sony, every time someone pays them $199 for a console, they get an additional $240 from the bank immediately. They would even be selling the digital SKU at a profit this way as opposed to people just dropping down $399 for the console.

And the overall effect, a consumer can buy into next-gen with as little as $199. And have even more money available to buy games and accessories. And most people will be ok paying $15 a month to be able to use their PS5. And since it's not tied to the account, hey can pay whenever and however, they want.

Last edited by Intrinsic - on 28 August 2020