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

VAMatt said:
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.

PS+ is more than twice the Gold subscription and GP haven't really brought much profit yet. So nope, MS doesn't make more subs profit than Sony.



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."

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DonFerrari said:
VAMatt said:
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.

PS+ is more than twice the Gold subscription and GP haven't really brought much profit yet. So nope, MS doesn't make more subs profit than Sony.

Re-read my comment and try again. 

I didn't say anything about MS making more money from subs than Sony.  I didn't talk about profit at all.  My comment mentions revenue only.  It's a stone cold fact that MS is significantly more dependent on subscriptions for revenue than Sony.  



VAMatt said:
DonFerrari said:

PS+ is more than twice the Gold subscription and GP haven't really brought much profit yet. So nope, MS doesn't make more subs profit than Sony.

Re-read my comment and try again. 

I didn't say anything about MS making more money from subs than Sony.  I didn't talk about profit at all.  My comment mentions revenue only.  It's a stone cold fact that MS is significantly more dependent on subscriptions for revenue than Sony.  

If MS makes less profit from their subs than Sony then they would have less money available from it to subsidize the console.



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."

DonFerrari said:
VAMatt said:

Re-read my comment and try again. 

I didn't say anything about MS making more money from subs than Sony.  I didn't talk about profit at all.  My comment mentions revenue only.  It's a stone cold fact that MS is significantly more dependent on subscriptions for revenue than Sony.  

If MS makes less profit from their subs than Sony then they would have less money available from it to subsidize the console.

MS has massively more money available than Sony to do whatever they want.  But, that's not what I said, and it's not relevant in a case where both companies have sufficient access to cash to cover a reasonable subsidy.  What I said is that MS gets more of *their revenue* from subs than Sony does (which is a fact).  Therefore, it makes more business sense for MS to subsidize a console than it does for Sony.  MS is more likely than Sony to make that subsidy money up in the long run through subscriptions.

Also, I said that Sony is in a stronger position in the market right now.  More people are PS fans than XB fans.  And, all else being equal, that larger group of PS fans is more likely to choose PS over XB next gen.  Therefore, Sony has less to gain from a big subsidy.  If MS wants to pull people from the big group of PS fans to XB next gen, a big subsidy would help with that.  Sony could also pull XB users to PS with a subsidy.  But, there are a lot fewer potential people to pull over.  



That is bold but way too low imo. Sony won't take much of a hit on the standard PS5 and will most likely only price match Xbox Series X. With the digital version being the loss leader and cheaper option - probably $100 less, which will be subsidized by digital sales and subs.



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I expect something around 499$ for digital (the one I am targeting to buy) and 599$
If they managed to go for 499$ for the standard then 449$ for the digital-only which would make me very happy :)

399$ is really wishful thinking imo. And esp. in the current position Sony is, it would make little sense to do that knowing that they are going to sell more Play Station than Xbox anyway (even at 599$). Why on earth would they lower the price and lose more money when they can make way more at the end. All the polls and stuff like that shows that the market is favoring Sony...



So Sony is just gonna lose a bunch of money for no gain whatsoever? I like Sony as little as everyone else but even I don't think they're that stupid.



If you demand respect or gratitude for your volunteer work, you're doing volunteering wrong.

Imaginedvl said:
I expect something around 499$ for digital (the one I am targeting to buy) and 599$
If they managed to go for 499$ for the standard then 449$ for the digital-only which would make me very happy :)

399$ is really wishful thinking imo. And esp. in the current position Sony is, it would make little sense to do that knowing that they are going to sell more Play Station than Xbox anyway (even at 599$). Why on earth would they lower the price and lose more money when they can make way more at the end. All the polls and stuff like that shows that the market is favoring Sony...

Basic economics tells us that Sony will sell more consoles at a lower price point than they will at a higher price point.  The console market as whole will (the total number of consoles sold by all brands) will be larger or smaller based on pricing as well.  Sony isn't in business to sell more units than MS.  They're in business to make as much profit as possible.  So, since they have the ability grow the market and get more people to choose PS over XB, they will consider subsidies of all sorts to achieve those ends.  That doesn't mean that they will necessarily decide to use a big subsidy in this way.  But, they very well may.  In any case, selling more consoles than MS is not a factor in any of those decisions.  The only thing that matters is maximizing profit.  



The pricing model of the last generation and it's lack of price drops disagree with you but... Who knows.

It certainly is bold. Good on you for the prediction. The $499-449-399 has become rather boring.



sony played the waiting game and if they did price it at that range xbox is screwed haha!