drkohler said:
ConservagameR said:
Chip demand has increased a lot
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Actually, Nvidia has been desperately trying to get out of some TSMC contracts as they have way too much silicon in storage. It has also more than been rumoured that Apple is trying to cut orders due to significantly decreasing forecast numbers. (Obviously TSMC is simply sticking to contracts, as they want their factories to run at max capacity in order to be profitable. The penalties for cancelling fab times are HUGE).
A common misconception seems to be that "Chip shortage = not enough gpus/cpus". This is far from correct. Gpu and cpu chips are just a small part of "Chips".
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Nvidia started focusing on crypto more a while back and that didn't work out as great as they assumed.
The gaming card prices also got so high that once they caught up to demand, there were plenty of cheaper used cards for people to buy.
AMD Radeon is also competing closely again, which isn't a big concern yet, but isn't helping Nvidia's stockpile right now.
SvennoJ said:
gtotheunit91 said:
What's odd to me was that Sony just last year was bragging to their investors about how they were no longer taking a loss on the the disc based PS5. They were very quickly turning a profit on it. So you would think Sony would be able to ride out the inflation storm. It's not just the PlayStation though. Other Sony electronics have increased in price. So this was most likely more a Sony decision rather than a Jim Ryan decision.
It would've been great if Sony could've at least thrown in a 6 month to a year PS+ subscription or bundle a digital game like Ratchet & Clank or Returnal as a way to ease the pain in those markets.
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That was before prices went up, this year chip prices are going up by 10-20%. Of course they have contracts in place, yet they're likely up for renegotiation and fuel prices have gone up a lot as well. Any profit Sony was making on the digital version is likely gone.
It's not just Sony electronics that have increased in price
https://epsnews.com/2022/06/16/component-prices-continue-to-rise-so-prepare-now/
On average, electronic component prices rose by 5-40% in the past quarter. Lead times for these components have also increased.
STMicroelectronics Asia Pacific has notified its distributors about price increases for all its product lines in the second quarter of 2022. NXP is expected to increase all product prices by 15 percent, effective July 14. Bookings are backlogged to 2023. And Intel is expected to increase its pricing by 7-10 percent across all server CPUs in Q4.
During the summer, higher price tags may cause electronics prices to increase even more later this year. According to CNBC, the world’s biggest chip foundries, including TSMC, Samsung, and Intel, are considering price hikes due to inflation and the rising cost of chemicals and other raw materials. The price increases will help offset these costs, drive ongoing initiatives like reshoring, and help the foundries keep on target for growth this year.
Foundries have already increased their prices by 10-20 percent in the past year. However, due to the ongoing shortage of semiconductors, chip foundries have a great deal of freedom when it comes to pricing. When supply is limited, electronics manufacturers and other businesses that depend on semiconductors (like automakers) will take what they can get.
With a few exceptions, it’s likely that electronics and components prices will rise so long as manufacturers face uncertainty around labor, supply and logistics. It may not be until well into 2023 that electronic price increases begin to slow down.
We could ban crypto mining, that will free up a lot of chips...
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This.
Everything has gone up in price for various reasons. Who can afford to eat those costs and for how long is another thing.
Sony likely wanted the price to be higher to begin with, so now is the perfect time to increase however much they think they can vs XB.
Crypto fluctuations is why Nvidia has too much stock. If companies just made more gaming cards to begin with it wouldn't be such a problem. Instead they'd much rather jack the prices up and sell less or the same. Nvidia simply get's away with that, and AMD Radeon makes more money when they compete and sell high instead of going for performance per dollar. The consumers really don't help the situation as per their buying habits.
SvennoJ said:
SegaHeart said:
Here's theory? USA was pissed at PS3 costing 600$ The most vocal were english speaking we saw the effects of PS3 get the battle of their life with Xbox 360 for 3 or 4 years and not selling as they hoped and still in store shelfs moreso than Xbox, lost so much money they gained from Ps1 and 2 era. Sony decided not to Price hike it in USA because we would moan again which would send shockwaves like the PS3 back in 2006? But it would be that strong but close it'll dent it with 550$ but won't go PS3 levels of not wanting for mass public? Though the scalpers are selling I think alot of PS5's 1/3 of their lot are kept never used in scalpers hands which is why PS5 software is not super high like PS4 and probably not PS3 software in 2010? Though PS3 barely selling in 2006 I think the software then is worser than PS5? Sony was smart to not price increase in USA?
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Just look at the exchange rate to see why the USA is not getting a price hike.
$500 a year ago is now effectively worth $623 for Sony. So if anything, the USA should get a price decrease.
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US always has a strong market, other than the rarer times when it flat out crashes. This leads to them having lower pricing. Americans also tend to have plenty of options most of the time, so they don't put up with price gouging if they have a choice. Sony could probably get away with $529, but to go $549 would lose them too many sales to XB. It's easier for Sony to offload that $29 between all the other countries and keep the US price low to compete directly with XB Series X there.
