Pedro Motta
Gold Member
Did the Series X/S had any revisions yet? Because the PS5 clearly had 2 revisions already that most certainly cut the costs.
Microsoft takes a $100-$200 loss on all Xbox Series X|S sales
- Thread starter The_Mike
- Start date
SlimySnake
Flashless at the Golden Globes
Sony Believes Its Standard Edition PS5 Will Break Even Next Month
Jim Ryan has revealed the standard edition of the PS5 will be turning a profit just seven months after it launched.
www.thegamer.com
Because they are greedy and saw the demand. See above.
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feynoob
Banned
DenchDeckard
Moderated wildly
Good point. Would be good to know.
Pedro Motta
Gold Member
DeepEnigma
Gold Member
I don't believe so. They are still on the same model #.
John Wick
Member
Yes because global supplies are going up all the time.
feynoob
Banned
MasterCornholio
Member
Sony hasn't told their investors any thing else. So they are probably still making a profit off hardware. It also helps that they increased the price and made several revisions to the hardware. Something that I don't believe the competition has done.
John Wick
Member
No because the heatsinks have shrunk on each model. Using less copper etc. The new model is probably saving quite a bit but offset by component price increases worldwide.
DeepEnigma
Gold Member
I'm talking about the Series X/S. They are on the same model numbers, which means they have yet to have a revision to reduce costs. I know Sony has had 2 already, most recent also being 6nm.
nocsi
Member
Office365 for instance uses less resources and charges customers more. Xbox isn't charging its customers what it should be.
Right, you're correcting something that's meaningless in my context. What I'm saying is - it's not a great time to be doing M&A in this current economy. And no, the money isn't "use it or lose it" lol
feynoob
Banned
Expensive parts, which gets more expensive in the current climate.
Usually these parts gets cheaper. But this time, the economy is in shamble. So those prices won't drop any time soon.
AJUMP23
Parody of actual AJUMP23
Definitely cloud juice. It brings the power.
feynoob
Banned
30% cut for every game sold at their system. That is alot of money, if they can manage to increase the supply of their consoles.
Controllers and accessories are another part money making.
You have to spend your money, by buying assets. Especially when those assets are getting cheaper, due to the current economic.
Activision generates insane profits, and would bring alot of money for them. Especially on the mobile market, which they don't have.
It's much better option, than leaving your money in the bank.
feynoob
Banned
Can I get some of that
?
HerjansEagleFeeder
Member
I hope this works out for them. Me personally, I'm not gonna renew my GP sub since I think it's not worth it for what I'm getting.
feynoob
Banned
Wait for 2023. Much better than now.
nowhat
Member
I believe in Phil Spencer.
He will save us.
He will shave us.
(apologies for the poor photoshop)
feynoob
Banned
Nintendo plays dnd, while others chase after expensive stuff.
SmokedMeat
Gamer™
You can't tell me manufacturing costs haven't dropped? These consoles aren't using the latest components.
Also make no sense that Microsoft is losing $100-$200 per unit and Sony's breaking even? Someone's a liar.
Also make no sense that Microsoft is losing $100-$200 per unit and Sony's breaking even? Someone's a liar.
01011001
Banned
the SX has a bigger SOC with more on it... so that part at least should be more expensive in the SX
John Wick
Member
Apparently it's $100 on the S and $200 on the X.
GHG
Gold Member
TSMC plans another price hike amid inflation concerns
Chip titan warns clients of second increase since 2021, citing rising costs
asia.nikkei.com
And that's after they already raised prices last year.
Common theme across all components, raw materials and even logistics costs.
People need to get away from the idea that older=cheaper. That's not how it works in an inflationary economy.
John Wick
Member
Manufacturing costs have gone up all over the world or have you been asleep all this time?
Components and transport too. Energy and fuel costs affect evedybody.
tmlDan
Member
John Wick
Member
Also don't forget energy and fuel costs are through the roof. They are used in everything including transport and manufacturing. Also with the Xbox APU for Series X will be expensive too.TSMC plans another price hike amid inflation concerns
Chip titan warns clients of second increase since 2021, citing rising costs
And that's after they already raised prices last year.
Common theme across all components, raw materials and even logistics costs.
People need to get away from the idea that older=cheaper. That's not how it works in an inflationary economy.
ChorizoPicozo
Member
If what Phill says is true and this is true as well:
Is like Xbox doesn't even understand why they are failing.
Is like Xbox doesn't even understand why they are failing.
Pelta88
Member
"I'm pleased to say that the PS5 standard edition will break even from next month's production," Ryan revealed. "From then on, we project that it will gradually become increasingly profitable." The standard edition of the PS5 with a disc drive currently makes up the majority of PS5s sold. Ryan revealed PlayStation expects that split to shift slightly in the future, but for the digital edition to always be outsold by the more expensive model. "
Sony Believes Its Standard Edition PS5 Will Break Even Next Month
Jim Ryan has revealed the standard edition of the PS5 will be turning a profit just seven months after it launched.
www.thegamer.com
This news hit the stock market 18 months.
SlimySnake
Flashless at the Golden Globes
TSMC plans another price hike amid inflation concerns
Chip titan warns clients of second increase since 2021, citing rising costs
And that's after they already raised prices last year.
Common theme across all components, raw materials and even logistics costs.
People need to get away from the idea that older=cheaper. That's not how it works in an inflationary economy.
And yet, GPU prices have crashed. SSDs prices have crashed. RAM too. Why are consoles different?
Dont believe these liars. They both have their own agendas. You dont go from making profit in June of 2021 to losing money so much you have to raise price by $50. And for MS to be losing $200 two years after launch would be a bigger fuck up than Sony losing $200 on PS3s at launch. A console that broke even by year 2. So either Microsoft has created an even bigger fuck up than the PS3 or someone isnt being completely honest. Im gonna go with the latter because these consoles are using parts the PC industry uses. No fancy Cell like processors or expensive $250 blurays. Their APUs are made using the same 7nm tech AMD uses. MS's SSD is literally an off the shelve part. Same thing with their RAM.
Xbox One's BOM was $471. And that was with the kinect. Without the kinect, they were able to sell it for $400 and break even. For them to say that the Xbox Series X's BOM is $700 is nonsense.
ReBurn
Gold Member
Xbox can't be failing too badly if they aren't in a position where they are making people pay more for consoles.If what Phill says is true and this is true as well:
Is like Xbox doesn't even understand why they are failing.
MasterCornholio
Member
Xbox can't be failing too badly if they aren't in a position where they are making people pay more for consoles.
Depends how you see that to be honest. Could be that they can't afford to raise prices due to the impact it would have on the demand.
SmokedMeat
Gamer™
Yeah, I guess I had the blinders on as to how it used to be.
Maybe this is why we haven't seen a Switch 2 yet. Nintendo doesn't like to lose money on their consoles.
John Wick
Member
Which GPU prices have crashed? Not the new ones but the old ones that Nvidia over manufactured and now need to get rid of. The reason for the price drops are more to do with less PC demands and overstock of components. This doesn't affect the console industry because even now both Sony and MS can't produce enough.
DenchDeckard
Moderated wildly
If what Phill says is true and this is true as well:
Is like Xbox doesn't even understand why they are failing.
This is the kind of thing that makes me realise how clueless everyone is on here.
A slide that where Sony said they expect to break even on the ps5 in June suddenly turns onto Sony have been turning a profit on the disk version of the ps5 since June 2021....all the while the cost of everything goes through the roof from manufacture to logistics costs.
We gonna have to see receipts that Sony isn't making some serious losses on the hardware. Why else would they have gone through multiple revisions and also raised the prices.
It's inevitable that MS put the console prices up after Xmas. This is them just prepping us to soften the blow.
At least the series X anyway.
analog_future
Resident Crybaby
Definitely explains why Series S|X (and PS5) are such tremendous values compared to their PC counterparts.
I mean, when these consoles launched, it cost nearly 3x the amount of money to build an equivalent PC.
Amazing values still, too.
I mean, when these consoles launched, it cost nearly 3x the amount of money to build an equivalent PC.
Amazing values still, too.
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ReBurn
Gold Member
Either way, it doesn't look like Xbox is going to fail simply because their console business works like the console business has worked since the beginning of the console business.
I'd be surprised if PS5 consoles are still profitable considering changes in inflation and currency conversion rates. Especially when you look at the hit Sony took to operating income for the last few quarters. It's clear that Sony couldn't afford to not raise prices, otherwise they wouldn't have.
DeepEnigma
Gold Member
ChorizoPicozo
Member
Is not even about the hardware itself.Xbox can't be failing too badly if they aren't in a position where they are making people pay more for consoles.
I imagine a bunch of people in a meeting room:
"We have the most powerful console, the best ecosystem, the best value, we offer a competitive price point"
Why aren't we selling more?!!!!?!?!?!
Then the janitor who is cleaning the trash can, stops and says:
"Have you ever though about the content?"
The executives look at him, ignoring him and say..."it must be sony's anticompetitive practices".
ReBurn
Gold Member
You do have a vivid imagination, no question.
SlimySnake
Flashless at the Golden Globes
The 20 tflops 6800xt was just $550 last week. I posted a link in the PC thread.
The 13 tflops 6700xt was down to $350 on Sunday. The 10.7 tflops 6600xt was around $250 a couple of weeks ago.
The PCIE Gen 4 SSDs which launched for $250-300 last year have crashed to around a $100 this year. Hell, i picked one up for $150 earlier this year and that model is down to $100 already. I purchased a bunch of PC parts last year around August and they were expensive. They are all half off. Especially RAM and CPUs.
I really dont know what to say here. Consoles dont cost that much to make. MS isnt even using expensive SSDs like Sony is. $50 loss I can understand if you include distribution and shipment costs which have gone up but also come back down since the pandemic ended. Dont fall for these misleading statements. This man was just saying how gamepass was the future a few months ago and now, he's saying he maxed out the console userbase? What? Nothing about that interview makes sense. Just ask yourself, why would he still have a job if he was losing $200 per console (worse than the PS3 at this point in the gen), and was no longer able to sell gamepass to his console users?
DenchDeckard
Moderated wildly
Again, we have absolutely no evidence that Sony has ever posted a profit from a ps5 console sale....
....but here we are. The masses have been convinced. GG Sony.
ChorizoPicozo
Member
"Is a fantasy based on reality"