Forums - Sony Discussion - September 9th will be the 25th Anniversary of PlayStation; Rumored full PS5 blowout date.

So did anything happen or Sony still sleeping.



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It all really comes down to how aggressive sony wants to be.

The most solid rumor on the BOM for PS5 was $450, and at that time that rumor was citing costs of certain components being high. But since then new info suggests that the cost of those components has dropped. And I think this coupled with stories of better than expected yields ties to why sony could up estimated shipments for the 2020 fiscal year to 10M from 6M.

But lets still take that $450 as the BOM. There is usually around an additional 15%-20% of hidden costs that get tagged onto that BOM. These costs are basically taxes and retailers cut. Which brings the true cost of a $450 BOM console to around $520. So let's say $520 for the PS5 and $490 for the PS5D.

Now question is, how much of a loss will sony be willing to take per console?

For reference, with the PS4 they took a $60-$80 loss per unit sold. However, they were able to break even on every console for every PS+ annual sub made + game purchase. With the PS3, hey took a whopping $200 - $250 loss o very console sold. And at a time where they didn't have PS+ and digital distribution was not what it is today.

I think its possible sony can be willing to take anything as much as a $70 - $90 loss per console sold. Which puts them just $10 over what they took on the PS4. That would allow them to sell the PS5D for $399 ($90 loss) and the PS5 for $449 ($70 loss). They would ship more of the digital SKU though, as they stand to make more money on that SKU over both the short and long term. 

My estimates may be off by $10-$20 in either direction but it keeps everything in the same ballpark.



Intrinsic said:

It all really comes down to how aggressive sony wants to be.

The most solid rumor on the BOM for PS5 was $450, and at that time that rumor was citing costs of certain components being high. But since then new info suggests that the cost of those components has dropped. And I think this coupled with stories of better than expected yields ties to why sony could up estimated shipments for the 2020 fiscal year to 10M from 6M.

But lets still take that $450 as the BOM. There is usually around an additional 15%-20% of hidden costs that get tagged onto that BOM. These costs are basically taxes and retailers cut. Which brings the true cost of a $450 BOM console to around $520. So let's say $520 for the PS5 and $490 for the PS5D.

Now question is, how much of a loss will sony be willing to take per console?

For reference, with the PS4 they took a $60-$80 loss per unit sold. However, they were able to break even on every console for every PS+ annual sub made + game purchase. With the PS3, hey took a whopping $200 - $250 loss o very console sold. And at a time where they didn't have PS+ and digital distribution was not what it is today.

I think its possible sony can be willing to take anything as much as a $70 - $90 loss per console sold. Which puts them just $10 over what they took on the PS4. That would allow them to sell the PS5D for $399 ($90 loss) and the PS5 for $449 ($70 loss). They would ship more of the digital SKU though, as they stand to make more money on that SKU over both the short and long term. 

My estimates may be off by $10-$20 in either direction but it keeps everything in the same ballpark.

Is that BOM with the controller?



...to avoid getting banned for inactivity, I may have to resort to comments that are of a lower overall quality and or beneath my moral standards.

Seems like games tweet wasn't real them.



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

Random_Matt said:
ClassicGamingWizzz said:

sure lol , they will backpedal the price of the console 100 dolars xD

Why not?

Sony will no price the PS5 disc SKU at $399. That's super unlikely cause it would mean that the even expectedly cheaper diskless SKU would still have to cost less tan tat. So maybe what? $369? That would mean they are taking a $120 (disk SKU) - $160(diskless SKU) loss on every console sold. While still way below what they took on the PS3, they just don't need to do that, especially not in the first 6 months of the new-gen.

So coming in at $399 (PS5D) and $449 (PS5) is sony's best bet if they plan on undercutting MS. 

MS is also likely already taking a loss on both the XSS and XSX and there is a hardware advantage over the XSX vs the PS5 hat a $50 price difference would justify.



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sales2099 said:
That awkward moment when Xbox drops bombs on Sony’s big day. This is why console wars are fun

Lol that is pretty hilarious



Pocky Lover Boy! 

VAMatt said:
Random_Matt said:
Already said $449, they will always undercut. Perhaps $399, rendering both Xboxes a very hard sell.

If they announce the disk version at $399, I expect MS to come out the next day and say "we changed our minds.  Series X is now $399."  There ain't no way they're gonna let Sony undercut them by $100.  

That would look very bad for MS, would both look like they have no confidence in their product or that they were overcharging on the beggining.



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

DroidKnight said:
Intrinsic said:

It all really comes down to how aggressive sony wants to be.

The most solid rumor on the BOM for PS5 was $450, and at that time that rumor was citing costs of certain components being high. But since then new info suggests that the cost of those components has dropped. And I think this coupled with stories of better than expected yields ties to why sony could up estimated shipments for the 2020 fiscal year to 10M from 6M.

But lets still take that $450 as the BOM. There is usually around an additional 15%-20% of hidden costs that get tagged onto that BOM. These costs are basically taxes and retailers cut. Which brings the true cost of a $450 BOM console to around $520. So let's say $520 for the PS5 and $490 for the PS5D.

Now question is, how much of a loss will sony be willing to take per console?

For reference, with the PS4 they took a $60-$80 loss per unit sold. However, they were able to break even on every console for every PS+ annual sub made + game purchase. With the PS3, hey took a whopping $200 - $250 loss o very console sold. And at a time where they didn't have PS+ and digital distribution was not what it is today.

I think its possible sony can be willing to take anything as much as a $70 - $90 loss per console sold. Which puts them just $10 over what they took on the PS4. That would allow them to sell the PS5D for $399 ($90 loss) and the PS5 for $449 ($70 loss). They would ship more of the digital SKU though, as they stand to make more money on that SKU over both the short and long term. 

My estimates may be off by $10-$20 in either direction but it keeps everything in the same ballpark.

Is that BOM with the controller?

Yes it is... and from what we know so far controllers have been costing about 15 USD for manufacturers but retailing for 60USD.



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

DroidKnight said:

Is that BOM with the controller?

Yup. For reference, PS4 BOM + controller + manufacturing was $381.

DonFerrari said:
DroidKnight said:

Is that BOM with the controller?

Yes it is... and from what we know so far controllers have been costing about 15 USD for manufacturers but retailing for 60USD.

The PS4 controller costs $18. The PS5 controller will likely cost around $25-$28 (about $7 to $10 more)



Intrinsic said:
DroidKnight said:

Is that BOM with the controller?

Yup. For reference, PS4 BOM + controller + manufacturing was $381.

DonFerrari said:

Yes it is... and from what we know so far controllers have been costing about 15 USD for manufacturers but retailing for 60USD.

The PS4 controller costs $18. The PS5 controller will likely cost around $25-$28 (about $7 to $10 more)

Do you have real source for PS4 controller or that is just people estimatives? Would say the same for the second, seems like speculation.



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