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Forums - Sales Discussion - BOLD PREDICTION: PS5 and PS5D to be $399 and $349 respectively

I don´t see the disc version going any lower than $450, that´s the absolute lowest cost imo.



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Does anybody have an understanding in the economic laws of the US, because that will have a significant impact on the PS5s pricing.
As for europe... in the EU, there are laws which forbidd a company to sell products below acquisition cost of its components.
IF the PS5s BoM would sum up to - lets say - X$ then the PS5s price would have to be equal/above that in europe.



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... announced as a Home Console

... advertised as a Hybrid

... delivered as a Portable

Ain't no m-fing way that the this prediction is right. Sony would lose a ton of money on the consoles, and they don't have the same level of subscription revenue (as a percentage of total revenues) as MS does to make up for it. Add to that their current strong market position, and it seems very difficult for Sony to justify a giant subsidy to the console price. I think the finance guys at Sony have their work cut out for them just trying to match the Series X pricing with the PS5 disk drive version.

The digital only is easier to subsidize, because of the much greater share of software sales that they take. That's probably what they'll do to avoid being totally crushed on price at the low end by Series S. For those reasons, $499/$399 seems like a near certainty.



Intrinsic said:
ArchangelMadzz said:
I see $499 and $399

Or $449 and $399

$50 difference isn't much incentive for people to buy the digital which is what Sony want you to do. So $499 $399 is more beneficial to Sony.

$100 differences to $399 vs $499 what a $50 difference is to $349 and $399. Besides, all they really have to do is just ship out more of the digital SKUs, with how much demand there will be all-round, there will be a lot of people that would just buy what they can get there hands on,especially if they were willing to go either way to begin with.

Blood_Tears said:
Although I would love this price, I don't think they will go that low.

Also, the only difference is the UHD drive, how much does that actually cost by itself?

Under $40. Most ikey around $35.

$349 is way too cheap.

There's no way this will be cheaper than a PS4 at launch.



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GamingRabbit said:
Does anybody have an understanding in the economic laws of the US, because that will have a significant impact on the PS5s pricing.
As for europe... in the EU, there are laws which forbidd a company to sell products below acquisition cost of its components.
IF the PS5s BoM would sum up to - lets say - X$ then the PS5s price would have to be equal/above that in europe.

Laws of this sort do exist in the US.  But, they're only enforced when a competitor complains, and even then there are also tons of loopholes.  In other words, they're not a factor in console prices.  Sony can give the system away for free if they want.  



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Intrinsic said:

Reasoning...

  • 350mm2+ 28nm APU ($100)
  • <325mm2 7nm APU ($110)
     due to being on 4 times smaller fabrication process, from a wafer standpoint alone you should be getting around 4 times more chips from the same-sized wafer. 50 more.

WTF?

A 325mm2 chip is a 325mm^2 chip. No matter what. Roughly same number of chips/waver than a 350mm^2 chip.

The 7nm node currently is considerably more expensive than the 28nm node, hence a 325mm^2 7nm PS5 SoC is considerably more expensive than a 350mm^2 28nm PS4 SoC.



This is ultra bold, I don't think Sony wants to lose this much money on HW.



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

Ps4, for as weak as it was (Xbox One was weaker) launched at $399. For what PS5 offers, no way it’s that low. The specs aren’t on Series X level, but the gap isn’t THAT big.



Xbox: Best hardware, Game Pass best value, best BC, more 1st party genres and multiplayer titles. 

 

My first and second thought about these prices:

https://www.youtube.com/watch?v=_n5E7feJHw0



Last edited by Conina - on 12 September 2020

drkohler said:
Intrinsic said:

Reasoning...

  • 350mm2+ 28nm APU ($100)
  • <325mm2 7nm APU ($110)
     due to being on 4 times smaller fabrication process, from a wafer standpoint alone you should be getting around 4 times more chips from the same-sized wafer. 50 more.

WTF?

A 325mm2 chip is a 325mm^2 chip. No matter what. Roughly same number of chips/waver than a 350mm^2 chip.

The 7nm node currently is considerably more expensive than the 28nm node, hence a 325mm^2 7nm PS5 SoC is considerably more expensive than a 350mm^2 28nm PS4 SoC.

I don't see what the issue is.

On 28nm, sony made a 350mm2 APU that ost them around $100. With the PS4pro, they made a 325mm2 APU on a 16nm process. Smaller chip,bt way more powerful.Sae with the PS5, I am expecting it to be another 30 - 325mm2 APU on the 7nm process. And yes, while 7nm fab is more expensive than 28nm, what makes it more expensive is the technology and not the wafer itself. Hence the "tech tax". But sony putting in orders for the PS5 APu (just as was the case with the PS4) isn' like most other companies. While the likes of AMD/ NVIDIA would putting orders for only like 4-10M chips on any give fab process per year, sony would be putting in an order of around 30-40M chips. 

Trust me, that changes the cost conversation a great deal.

But what really feeds this estimate here is actually with me looking at the $499 Nvidia RTX3070. That's a 390mm2+ chip on a Samsung 8nm process, and its cooling system, board, RAM...etc and being priced at $499. And with things like GPUs, be rest assured that there is a very hefty mark up on that MSRP. Case in point, Nvidia is known to sell stuff for as much as 2-2.5x times more than what it actually cost them to make it.