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Forums - Gaming - Might Sony go with a two-SKU strategy next-gen (like Microsoft did with Series S)?

 

Will Sony launch with two SKUs next-gen?

Yes, a regular & weaker PS6 at launch 6 17.65%
 
A PS5 Pro will be the budget option 4 11.76%
 
The PS5 will be the budget option 3 8.82%
 
PS5'll end immediately at PS6 launch 0 0%
 
No, a PS6 and later a PS6 Pro next-gen 18 52.94%
 
Yes, but the weaker one after launch 1 2.94%
 
Other (please explain in the comments) 2 5.88%
 
Total:34
Wman1996 said:

I don't think so. The most I could see Sony doing is a two-SKU approach that they did with the PS3. Perhaps they'll be a cheaper PS6 with less ports and 1 to 2 TB SSD and there will be a more expensive one with more ports and 2 to 4 TB SSD.
I don't think we'll get the digital vs. standard SKU separation that we got with the PS5. The detachable disc drive rumor is pretty likely, and I could see PS6 only being digital out of the box. They'll probably sell the disc drive separately. Heck, I think the PS5 Slim will be digital-only with a detachable disc drive sold separately.
PlayStation home consoles (with the exception of the PS3) have been the dominant ones. Yes, the Switch has outsold the PS4. But the Switch is in a weird category where it's a hybrid and indirectly competes with both the PS4 and PS5 during its life. PS1 clobbered the N64, PS2 destroyed the GameCube, PS4 annihilated the Wii U, etc. Xbox has usually lost to PlayStation as well. The bottom line, Sony doesn't need to. Microsoft needed the multiple spec approach, though.

I think we are still going to get units with and without disc be it for PS5 Slim or PS6, it will be the same SKU but one will be fully integrated on the chassis (different cover) and the other more like a add-on. Question will be how well streamlined the proposition will be. It could even be a slot like PS2 modem or how we installed extra HD space on PS3/4.

SKMBlake said:

"Sony shoud do 2 SKUs, to offer a cheaper alternative, with different options"
"No, the PS5 Digital Edition doesn't count"

Okay

He basically wants to see if Sony should make a capped PS6 to reduce price.



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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scrapking said:

In fact, Sony started this two-SKU trend with the PS4 Pro, so they're obviously not averse to it.  And PC games have been scalable to different levels for decades now.  The main innovation with the Series S was leading with two-SKUs at the beginning of a generation.

Not true.

Nintendo has the DS+DSi line with it's increase in RAM, faster CPU.




www.youtube.com/@Pemalite

Kristof81 said:

At launch? Doubt it. I think we're talking about two different strategies here. MS main goal is to spread gamepass to as many customers as possible at any price point, hence why we have series S in the first place. Also it wouldn't surprise me if an additional MS' plan for the series S was to create a base platform for their future XB handheld (if AMD manages to create low power SoC with the same specs. It'd be much easier to achieve than to have series X / PS5 handheld equivalent) to spread gamepass to all of those handheld lovers (mainly in Asia) and realistically starting to compete with Switch and Steam Deck.

That's....   a really interesting suggestion, actually!  First speculation I've heard about the Series S potentially being the foundation for a future Xbox handheld.  Huh.



DonFerrari said:

Sorry but you are wrong on this.

A new architecture is more costlier to manufacture than the older one at the time of launch. MS is losing money on Series X and even more money on Series S, while Sony is about breaking even with PS5 and losing money on the digital version. Meanwhile PS4 is sold at profit for a long time now and didn't got pricecuts on the late life making the reduction in cost bring more profit on it.

I'll say again to you, the reason the systems are still manufactured and SW released for the older systems well into the gen is profit. Even on the other discussion we had you got it backwards, it isn't that Sony keeping the system under manufacture (even if in small quantity) that keeps the support of SW going or any mandate on it, it is just that the sales of SW on the older gen is still high enough for them to keep supporting and since they make profit on the older HW (which being discontinued wouldn't really open space to make the newer one since it is a different manufacturing process) they make it.

The sole reason MS discontinued Xbox 1 was that it was selling poorly and SW likely had dwindled a lot faster than PS4. This happens every gen, Sony keep manufacturing and supporting the older system longer than MS and Nintendo because the success they sustained on those systems allow for it to be alive longer.

I agree with your points, but disagree with your conclusions.  You say the new architecture is more expensive to manufacture.  That can be true, but only if it's truly leading edge architecture.  Zen 2 and RDNA 2 are very good, but not quite leading edge compared to absolutely top-end PC components.  However, the new architecture being more efficient means the chips themselves are more expensive, but Series S gets better overall performance than the One X despite having less RAM, less memory bandwidth, etc.  So the new CPU/GPU might be more expensive, yet the system itself might be cheaper overall once you factor in the savings with the memory, the buses, etc.  One X was also a niche product, where Series S is a mass market product, and that further confuses the issue.

Your observation that Microsoft is losing money on the Series S doesn't disprove any of the above, since we don't know how much money they were making/losing on the One X.  And in any case, the One X was sold at a higher MSRP than the Series S, with further obfuscates things.

When it comes to software support, I continue to see evidence that it's a little bit of both.  Yes, the huge installed base of units is a contributing factor, and the fact that the system is still on sale is a contributing factor.



SKMBlake said:

"Sony shoud do 2 SKUs, to offer a cheaper alternative, with different options"
"No, the PS5 Digital Edition doesn't count"

Okay

I can't find anyone who said this who you might be quoting, so it appears that you've manufactured quotes.

If you're referring to anything I said, the PS5 Digital Edition doesn't meet the criteria I listed because I was specifically referring to either keeping last-gen consoles around as a budget option, or having a less powerful version of the new architecture around as a budget option.

$400 USD is not the traditional price range of a budget console, if you can even find it for that (they're hard to find generally, and are usually $460 bundled with a game if you do find one).  It's genuinely a cheaper price than the one with the optical drive, sure.  But that's nothing new, and not what I created this thread to talk about.  $300 or less is more the traditional budget range in this industry.



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Pemalite said:
scrapking said:

In fact, Sony started this two-SKU trend with the PS4 Pro, so they're obviously not averse to it.  And PC games have been scalable to different levels for decades now.  The main innovation with the Series S was leading with two-SKUs at the beginning of a generation.

Not true.

Nintendo has the DS+DSi line with it's increase in RAM, faster CPU.

Fair.  I meant, started the trend with home game consoles.  If you want to go down that road, though, the DSi didn't start it with handhelds, the Game Boy Color did.  :)



scrapking said:
DonFerrari said:

Sorry but you are wrong on this.

A new architecture is more costlier to manufacture than the older one at the time of launch. MS is losing money on Series X and even more money on Series S, while Sony is about breaking even with PS5 and losing money on the digital version. Meanwhile PS4 is sold at profit for a long time now and didn't got pricecuts on the late life making the reduction in cost bring more profit on it.

I'll say again to you, the reason the systems are still manufactured and SW released for the older systems well into the gen is profit. Even on the other discussion we had you got it backwards, it isn't that Sony keeping the system under manufacture (even if in small quantity) that keeps the support of SW going or any mandate on it, it is just that the sales of SW on the older gen is still high enough for them to keep supporting and since they make profit on the older HW (which being discontinued wouldn't really open space to make the newer one since it is a different manufacturing process) they make it.

The sole reason MS discontinued Xbox 1 was that it was selling poorly and SW likely had dwindled a lot faster than PS4. This happens every gen, Sony keep manufacturing and supporting the older system longer than MS and Nintendo because the success they sustained on those systems allow for it to be alive longer.

I agree with your points, but disagree with your conclusions.  You say the new architecture is more expensive to manufacture.  That can be true, but only if it's truly leading edge architecture.  Zen 2 and RDNA 2 are very good, but not quite leading edge compared to absolutely top-end PC components.  However, the new architecture being more efficient means the chips themselves are more expensive, but Series S gets better overall performance than the One X despite having less RAM, less memory bandwidth, etc.  So the new CPU/GPU might be more expensive, yet the system itself might be cheaper overall once you factor in the savings with the memory, the buses, etc.  One X was also a niche product, where Series S is a mass market product, and that further confuses the issue.

Your observation that Microsoft is losing money on the Series S doesn't disprove any of the above, since we don't know how much money they were making/losing on the One X.  And in any case, the One X was sold at a higher MSRP than the Series S, with further obfuscates things.

When it comes to software support, I continue to see evidence that it's a little bit of both.  Yes, the huge installed base of units is a contributing factor, and the fact that the system is still on sale is a contributing factor.

I dunno why we should consider X1X for this instead of let's say base PS4 since we are talking about making a cheaper model for 2 SKUs instead of keeping crossgen support. There is no question based on the data we have that having the base model (and possibly even the pro, but that wasn't the focus anyway on the crossgen, it isn't pro plus nextgen, it was base plus nextgen the pro only is supported by default in the end) after all the cut in costs (even if they gone and gave another pricecut) will be cheaper to manufacture than the entry level next gen for a few years at least.

Let's make an imagination exercise. Series S is estimate to lose up to 200 USD per HW sold (I guess Series X lose 100USD or possibly less... Phil Spencer said they lose 100 to 200 on every console sold) on the 299 pricetag so cost would be likely 499 to manufacture Series S, X1X was always sold at profit (MS said it was luxury/enthusiastic product so always sold at profit even on launch, same for PS4Pro) starting at 499 so after several years in the market it likely dropped manufacturing cost and would at least lose less money than Series S (but sure a much less capable machine at that).



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."

Considering PS5 has sold more than Xbox 4, I would say no... because it's unnecessary. If PS5 starts falling behind, then maybe. That's sort of how the gaming business works, or has worked, anyway.

Last edited by JackHandy - on 23 December 2022

A weaker console from launch is just not a good idea. Let's see how the Series S holds up in 2025...
The only reason I can see for Pro consoles this gen is a ray trace model to be able to hit 60 fps in ray trace mode.

At launch different storage options are the best way to offer cheaper alternatives. Next gen SSD prices should be a lot more affordable not to have to charge a huge premium for 2tb at launch. So likely a bigger difference next gen between the premium disc model and the cheaper digital edition.

The PS5 still isn't readily available, demand remains high despite the price having gone up. So why shoot yourself in the foot by adding a different spec SKU doubling QA work, optimization efforts etc.



They've been going with a pro series since last gen (and slim versions since PS1), why stop now?.



Mankind, in its arrogance and self-delusion, must believe they are the mirrors to God in both their image and their power. If something shatters that mirror, then it must be totally destroyed.