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[twilo99]

Microsoft can eat the loss, Sony can't?

So it’s actually possible but not good for business..

 

[Mibu no ookami]

The quote is “impossible” not “unsustainable”

Well whether it is possible or not is about whether it can be sustained.

What would Sony gain by cutting the price for a month other than to ruin their margins and create a tesla like situation where people don't know when they should buy or if they should wait for another price drop sometime.

You're not this dense.

 

[Xyphie]

If it’s impossible how did we get the xsx down to $350 or whatever it was in December…

https://en.wikipedia.org/wiki/Market_development_funds is the industry term for it.

 

[Spyxos]

Too expensive for whom really? It's a few hundred dollars which you pay once and then can play the latest games for a whole generation. It's an amount of money which would barely pay a week's rent in big cities throughout the developed world. Are console gamers this hard up? If they are then there's hardly any point Sony pandering to them anyway, they must be too penniless to buy games and generate profits for them.

I bought the console on day 1, but I also know people who would only buy the console at 300-400 euros. And the 80 euro games don't exactly help either.

 

[Elysium44]

I bought the console on day 1, but I also know people who would only buy the console at 300-400 euros. And the 80 euro games don't exactly help either.

So even if Sony were to subsidise the price to sell to such people, it wouldn't likely be worth it. I wonder how many of the people baulking at the cost, nonetheless have an expensive phone, buy expensive coffees / go drinking regularly / have overseas holidays - none of which they presumably expect to get cheaper each year. They also wouldn't expect their own salaries to fall each year presumably.

 

[LakeOf9]

So just so I’m clear:

• No big major first party games
• Potentially releasing games day and date on PC
• No price cuts
• Getting ready to release the successor

This is their big strategy for the coming fiscal year?

 

[Trogdor1123]

I’m not too concerned with this generation it if trends stay like this, the next generation is going to either totally disappoint, cost an arm and a leg, or be all streaming… none of those are good options imo.

 

[schaft0620]

Is the Pro going to be $650?

 

[DeepEnigma]

So just so I’m clear:

• No big major first party games
• Potentially releasing games day and date on PC
• No price cuts
• Getting ready to release the successor

This is their big strategy for the coming fiscal year?

Wrong. No big major based on existing franchises. Sequels, remasters, spin-offs, etc..

 

[Spyxos]

So even if Sony were to subsidise the price to sell to such people, it wouldn't likely be worth it. I wonder how many of the people baulking at the cost, nonetheless have an expensive phone, buy expensive coffees / go drinking regularly / have overseas holidays - none of which they presumably expect to get cheaper each year. They also wouldn't expect their own salaries to fall each year presumably.

It's a console to pass the time, it's not a high priority for many people. More important things come first.

 

[Klosshufvud]

So just so I’m clear:

• No big major first party games
• Potentially releasing games day and date on PC
• No price cuts
• Getting ready to release the successor

This is their big strategy for the coming fiscal year?

This is how I read it too. Sony really does not want you to care about Playstation. The whole thing is a massive red flag now.

 

[AJUMP23]

I would assume that current inflation and increase in production cost and labor since the introduction of the PS5 have caused the margins to decrease.

 

[ShadyAcshuns]

14 or so threads on the front page are about PlayStation. Just sayin'.

 

[TGO]

The PS4 didn't see any dramatic price cuts either
When the competition is none existent you don't need price cuts.

 

[DeepEnigma]

14 or so threads on the front page are about PlayStation. Just sayin'.

Now that's engagement.

 

[Haint]

Unfortunate consequence of the technology getting so expensive to produce I guess. It sucks for those that can't afford it. I know I would have never received my Genesis or PS1 under the tree if the prices had been like this.

As much as we take shots at game streaming, that is probably the only realistic way to get the entry price way down.

Adjusted for inflation, PS5 is actually cheaper than Genesis and PS1, and is within $20 or $30 of their mid cycle price drops. People made $3 an hour when Genesis released, and $5 with PS1. These days the people standing around Hobby Lobby and Costco make $20 an hour while the ones messing up your food orders make $15.

 

[EverydayBeast]

We heard about price drops and they’ll come out.

 

[Mooreberg]

I got the impression when PS5 Pro was first being mentioned that it would $599, which would in turn result the disc based "vanilla" PS5 staying at $499. Not going to call this confirmation, but it seems to be heading in that direction.

I just wonder at what point the pricing costs them customers that would otherwise buy the console and then spend a fair bit of money on subscriptions and games. There are a lot of people who jumped on PS4 in the back half of the lifespan and spent money on PS+, micro transactions, and of course, games.

Kinda glad I got $349 XSX panic bundle. Gives me more room to wait and see how this plays out.

 

[Elios83]

That's why they will raise sales with an actual price increase using the PS5 Pro.
599$ will be back.
Unfortunately with the silicon technology being at its limits the era of cheap high end consoles is over.

 

[cash_longfellow]

It is incredible that earning more than 30 billion during 2023 the profit margin is so small, if they cannot sell PS5 this year at $399, sales will suffer too much.

It’s cute that you think sales will suffer too much…especially with what’s about to happen over the next year with Xbox.

 

[skit_data]

Edit: wrong thread

 

[Games of Today]

Maybe that's why there haven't been many AAA IP announcements. If they save them for an earlier than expected PS6 launch, they could release 2 to 3 every few months for like 3 straight years.

 

[Metnut]

For a slow year, they have FF7 Rebirth, Stellar Blade and Rise of the Ronin all in the first half and exclusive to PS5. Add in all of the third party stuff coming out and there’s a lot going on.

 

[LordBlodgett]

 

[PixelatedBeast]

Remember when MAU used to be ridiculed here? It's Sony's top priority...

Theres a difference between maintaining 25-30 million gamepass subcribers who are reluctant to buy games, and maintainng 120 million Playstation accounts that could spend 70.00 per game, plus DLC and microtransactions.

 

[Klosshufvud]

Theres a difference between maintaining 25-30 million gamepass subcribers who are reluctant to buy games, and maintainng 120 million Playstation accounts that could spend 70.00 per game, plus DLC and microtransactions.

Pretty sure majority are F2P Fortnite players though.

 

[digital_ghost]

Meanwhile...at Nintendo HQ:

And on that day Nintendo's heart grew 3 sizes. Nintendo decided to give children at children's hospitals globally free switches.

 

[PixelatedBeast]

Pretty sure majority are F2P Fortnite players though.

If you're suggesting there are at least 60 million MAU on playstation in just Fortnite, then you need to post a source for such a claim. If half of the people who own a playstation console were playing the highest earning GAAS live service game, then they probably wouldnt need to look into creating their own live service game....

 

[SportsFan581]

Adjusted for inflation, PS5 is actually cheaper than Genesis and PS1, and is within $20 or $30 of their mid cycle price drops. People made $3 an hour when Genesis released, and $5 with PS1. These days the people standing around Hobby Lobby and Costco make $20 an hour while the ones messing up your food orders make $15.

I hadn't realized that the wages were that different.

 

[Deerock71]

Too many gamers are spoiled, expecting real terms price cuts just because they're used to it.

They're not spoiled. They simply won't buy it. $500 is a steep asking price for a toy.

 

[Little Chicken]

It’s cute that you think sales will suffer too much…especially with what’s about to happen over the next year with Xbox.

...Xbox software sales and margins will increase because they will sell more software by going platform agnostic? Seems like these are the results the president of SIE wants and soon

 

[Little Chicken]

Theres a difference between maintaining 25-30 million gamepass subcribers who are reluctant to buy games, and maintainng 120 million Playstation accounts that could spend 70.00 per game, plus DLC and microtransactions.

Yes PS+ subscribers spend over $1 billion a year on Xbox DLC.

 

[Little Chicken]

That's why they will raise sales with an actual price increase using the PS5 Pro.
599$ will be back.
Unfortunately with the silicon technology being at its limits the era of cheap high end consoles is over.

$599 would be ideal, but they aren't using the Pro to gain new PS owners, they're selling to their hardcore fanbase, so $645 with a larger profit margin isn't out of the realm of possibility.

 

[Elysium44]

They're not spoiled. They simply won't buy it. $500 is a steep asking price for a toy.

There are a lot of FAR more expensive hobbies. Anyone with a job can afford $500 once every ten years.

 

[XesqueVara]

Moore's Law being dead means there is no more free lunch for consoles.

 

[Little Chicken]

There are a lot of FAR more expensive hobbies. Anyone with a job can afford $500 once every ten years.

Seriously. I always get confused when people say shorter gens would be "too expensive" but spending $500 every 5/6 years is nothing. People spend more frivolously on dumber shit.

 

[WitchHunter]

Sony Says Big PS5 Price Cut Would Be 'Very Difficult' - IGN

Sony has said a big PlayStation 5 price cut would be “very difficult” as the console enters into the second half of its life cycle.

www.ign.com

Bring us a replaceable or stackable central unit. The rest does not need to evolve. Just insert a fancy new core every 5 years or so.

 

[Mooreberg]

People pass up things they can afford all the time. And people who do not post on video game forums are not comparing gaming to coffee or a family vacation to Hawaii. They compare it to other entertainment mediums. Save for whatever minute group pay for eight streaming services while only watching two each month, it has never been less expensive to consume movies (at home) and "premium" TV. Listening to music saw an increase of $1 per month on Spotify last year, still infinitely less expensive than the pre-streaming days. There are more books on offer than you could ever read with Kindle unlimited.

Gaming doesn't exist in a vacuum. Sony has done better than anyone in the history of the industry at selling a $499.99 price point. But every price point eventually hits a wall. It's up to them to decide if hardware margins are more important than growth of game sales, subscriptions, more third party software being sold that they get a 30% cut on, and so on.

 

[cash_longfellow]

...Xbox software sales and margins will increase because they will sell more software by going platform agnostic? Seems like these are the results the president of SIE wants and soon

Huh? Yea, they will get more software sales…cool .

wtf does that have to do with my response though? Please read back and break down my response before you reply.

 

[Deerock71]

There are a lot of FAR more expensive hobbies. Anyone with a job can afford $500 once every ten years.

So get on out there and force the masses to buy a PS5. GO ON! SCOOT! Land's sakes, you make it sound easy!

 

[clintar]

"... because we LOVE money"

 

[twilo99]

 

[Sleepwalker]

The stagnant transistor cost was known about well before the generation even started, look at this sad 2020 guidance from Marvell for instance. 5nm, 3nm etc is even worse. They're just going to bundle a first-party game or two with the console as those are "free". The Microsoft refresh leak telling us that they basically had/has the intention of selling the same hardware 4 years after release at the same $300 and $500 launch price just with 2x storage tells us how dire it really is. If Sony wanted a cheaper console they should've made a PS5 Series S.

Yup, but everyone laughed at jacket man when he said Moore's law is dead. We are in a plateau, unless theres some significant breakthrough, the days of getting more for less are more or less over.

At least thats my understanding of the situation.

 

[Mr.Phoenix]

This is what happens when a chipmaker is a monopoly.

What we need is some actual competition for TSMC. Whenever/if ever that comes, watch chip prices suddenly begin to plummet.

Yup, but everyone laughed at jacket man when he said Moore's law is dead. We are in a plateau, unless theres some significant breakthrough, the days of getting more for less are more or less over.

At least thats my understanding of the situation.

There is already a significant breakthrough. Just not perfected yet. Graphene-based processors can have clock speeds of up to 100Ghz. All the evidence points to the next breakthrough to be in material science and not necessarily getting the chips smaller.

 

[Xyphie]

Yup, but everyone laughed at jacket man when he said Moore's law is dead. We are in a plateau, unless theres some significant breakthrough, the days of getting more for less are more or less over.

At least thats my understanding of the situation.

Has to be said though that the scaling aspect of Moore's law isn't really the problem, we're still getting decent increases in transistor density from 7nm -> 5nm -> 3nm etc other than SRAM cells. It's just that now their cost is flat or cost more.

 

[pasterpl]

That's what I would like to know, what they are spending that enormous amount of money on.

on top of dev costs increasing. It cost money Developing portal, new accessories (headphones, earbuds etc. Probably part of the cost is also ps5 pro and ps6 development.

 

[Mr Reasonable]

Welp, they will release the Pro at $600...

If the standard PS5 remains at practically $500, you wonder what the point is - the cost of developing the machine, extra dev time in every piece of software, more QA on every piece of software. All to sell a machine that will be more expensive to make at a $100 premium.

 

[Elysium44]

So get on out there and force the masses to buy a PS5. GO ON! SCOOT! Land's sakes, you make it sound easy!

I don't care if they do or don't? But the idea it is too expensive is a myth.

Let's compare UK prices. PS2 launched in 2000 for £299, minimum wage then was £3.70 an hour. 81 hours' work to buy it.

PS3 launched at £425, minimum wage was £5.35, 80 hours.

PS4 launch £349.99, min wage £6.31, 56 hours.

PS5 launch £449, min wage £8.72, 52 hours (most affordable PlayStation to date) or the digital version was £359 (41 hours work at minimum wage).

PS5 slim in 2024 is £479.99, min wage is now £10.42. 46 hours (so in real terms it's more affordable than ever) or the digital version is £389.99 (38 hours work).

In April the minimum wage goes up 9.7% to £11.44. So the PS5 gets even more affordable.

What are people complaining about, really? It's just an inflated sense of entitlement to demand this thing keeps getting cheaper, when it's already being practically given away.

 

[MisterXDTV]

This was a given since die shrinks are now insignificant compared to the past....

Microsoft said they made the Series S for this very same reason

 

[gundalf]

399 for the disc version would be a great value price, maybe next year we will get there.