POLL: HOW MUCH WILL THE PS5 BE PRICED AT?

Discussion in 'Consoles & console games' started by Loobyluggs, Mar 28, 2020.

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POLL: HOW MUCH WILL THE PS5 BE PRICED AT?

  1. £/$/€ 200

    1 vote(s)
    2.3%
  2. £/$/€ 249

    0 vote(s)
    0.0%
  3. £/$/€ 299

    1 vote(s)
    2.3%
  4. £/$/€ 349

    0 vote(s)
    0.0%
  5. £/$/€ 399

    5 vote(s)
    11.4%
  6. £/$/€ 449

    4 vote(s)
    9.1%
  7. £/$/€ 499

    14 vote(s)
    31.8%
  8. £/$/€ 549

    10 vote(s)
    22.7%
  9. £/$/€ 599

    4 vote(s)
    9.1%
  10. £/$/€ 649

    5 vote(s)
    11.4%
  1. Loobyluggs

    Loobyluggs Ancient Guru

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  2. H83

    H83 Ancient Guru

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    I vote for 599€, seems very "reasonable" for the kind o hardware we´re talking. And for the Xbox i´m thinking about 699/799€.
     
  3. serbicu

    serbicu Ancient Guru

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    499 Euro here :)
     
  4. dark_surge

    dark_surge Master Guru

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    I voted $599, but it wouldn't surprise me if it was more than that. I agree with what H83 said.

    I wonder how much more powerful the Series X will be from the base model of the next Xbox. We could be talking closer to $1,000 if the gap is significant. There's $1,000-1400 phones out right now so I don't see why the console manufacturers wouldn't see that as an opportunity to get more money out of people.
     

  5. WhiteLightning

    WhiteLightning Don Illuminati Staff Member

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    i vote €449 , lets go Sony.
     
  6. XP-200

    XP-200 Ancient Guru

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    £550....but i suspect might be more as all the big three like to price gourge at launch on day one buyers.
     
  7. Loobyluggs

    Loobyluggs Ancient Guru

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    299 was my vote.

    PS5 is (partially) held up by having 100,000,000 PS4 owners (it's closer to 110, but who is counting) who 38,800,000 of which, have a PS PLUS account, with a value of $7 (ish) per month, which gives a nice figure of...‭ $‭266,000,000‬ per month, and quarters of $‭‭798,000,000‬, half's of $‭1,596,000,000‬ and, an annual total of $‭3,192,000,000‬.

    And, lest we not forget that Sony charge developers/publishers 30% for the games published through the PS store...that pulls in a lot of cheese.

    So, I think they can EAT a lot of $'s - but you gotta think of the cost if they annoy/aggravate their existing subscriber base by not giving them awesome content and options for their existing catalogue of games...this is partially (I suspect) why they went for backwards compatibility in a big way this time...that $266m per month on subs is too tasty to forget about.

    299 is not them losing 200 or 300...or...400, it is them protecting the $266m every month they currently are already getting, and in time, they want the existing PS4 users to migrate to the PS5, knowing that when they do, their investment is protected.

    "We protect you - you protect us!"

    299
     
  8. tsunami231

    tsunami231 Ancient Guru

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    would love it to be 299$ but I dont think that gona happen.
     
    XP-200 likes this.
  9. Redemption80

    Redemption80 Ancient Guru

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    I though I was being playing it safe with $499, but 299 is crazy.

    The only way it's that cheap is if it's 299 up front, but your tied into PS Plus for 24/36 months.
    Even then, that is still too cheap, Sony would need to introduce a Game Pass style service and price it at $15-20 a month and mage it mandatory.

    They can't sell the console that cheap and hope they make up the loss via PS Plus.
     
  10. Loobyluggs

    Loobyluggs Ancient Guru

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    They are already making $266m a month on PS Plus - they do not have to immediately make a profit on PS5, because they are already making insane profits on PS4.

    Also, remember; that figure of $266m is minus the 30% they make on all transactions via the PS Store. You know, the thing that allows for games on PS Vita, PS4, PlayStation VR, PSP and oh yeah - all of those tv shows and movies you can get - plus ALL monetary transactions for DLC's and add-ons.

    Lest we also not forget, this is Sony - one of the largest electronics companies in the world.

    I get what you are saying, I really do, but they are not going to sell 100m units in the first year, but, they do not have to worry that much about profit margins on something that probably was not going to be profitable for the first three years anyway on straight-forward unit transactions.

    They can eat that cost really easily - but they would not be able to do that if the PS5 was their only product and means of revenue.

    It's not, and that changes everything.
     

  11. vbetts

    vbetts Don Vincenzo Staff Member

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    I vote $449 starting price. Couple things to think about with this.

    - AMD's designs usually do not cost that much, and most likely these specs are designed to be more cost effective being an embedded system in mind.
    - Consoles are made with designs of mass production in mind, this will always lower cost due to designs being simple, easy to replicate, and/or cheap to produce.
    - Sony and Microsoft are known to sell at a loss to make up for it with subscriptions and accessories.
     
  12. H83

    H83 Ancient Guru

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    If we follow your logic then the best move Sony can do is offer the PS5 for free so more people may use PS Plus... But they have no reason to do this, most people have PS Plus because they need it to play online, is almost mandatory, so there´s no reason to lower the price of hardware because of that.
     
  13. Loobyluggs

    Loobyluggs Ancient Guru

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    Interesting point, but, is not supported by the fact that, if you do that, then the result would be varying amounts of the following:

    1) Demand for new consoles would outstrip supply, leading to lost sales, confusion and a logistical nightmare of epic proportions.
    2) Existing owners (PS4, PS4 Pro) would become disheartened, resulting in a negative marketing push worse than Coca-Cola had with 'new coke'.
    3) Brand loyalty would diminish.
    4) Publishers and developers could potentially rush-out new games to meet demand on the new console (If market penetration met market demand) that could lead them to 'abandon' PS4 titles for PS5 titles. Now, this would have to be extreme for this to happen, but, let's face it, no one is developing for PS3 any longer for this reason, so is not outside the realm of possibility, yet, does depend on meeting demand as mentioned.

    Overall and as mentioned, it is because of the very reason you mentioned that they have the fiscal capacity to have the price of 299 (excluding exchange rate calculation, so is a transient number) if they wish to maintain the very thing that is holding them together.

    $3.192 billion a year is pure PS Store subscription income.

    As a comparison, the number of people using PS Plus (38m+) is actually larger than the total number of units shifted of the XB1.

    As another aside - the numbers of XB Live users during the late days of the XB360 was just...staggering. MS was generating massive numbers for their XBL portal, and, this - if anything - was the very thing they should have protected instead of exploiting.

    This was WHY the XB1 had all of that 'tvtvtvtvtvtvtvsportssportssportssportsCODliveactionteeveeshow' , because instead of making the XB1 awesome, they pushed pushed pushed to get as much content as they could through XBL as they banked on people spending money through the XBL interface.

    This was also WHY the XB1 needed permaconnection to the 'net for DRM, 'cause all those content providers and publishers needed to know how their content was being used (plus a lot more) if they were to actually sign on the dotted line with MS. I can imagine there were detailed conversations and contract negotiations regarding the content being on the XBL/XB1 platform, for which MS had to make good on their promises.

    Y'see?

    MS sold their customer userbase of the XB360/XB1/XBL, by proxy, to make even more money than they were already making through the XB360/XBL numbers they were throwing at content providers.

    It still is, as I have said many times, one of the most shocking things that MS has ever done. The XB360 had a huge playerbase, and all they had to do was deliver a product that was double the XB360 in every sense, but no, they screwed the pooch and here we are, 7 years later looking at some pretty crazy numbers.

    299 - it's the right price. Sony have got nothing to prove and nothing to lose, because they are making $3.192 billion a year on PS Store. They can eat a tonne of profit.

    Microsoft cannot and, I strongly believe that if this round screws up as badly as the last round for MS, heads be rollin'

    One last time - Sony have never ever lost a round...
     
  14. boodikon

    boodikon Ancient Guru

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    England I guess £499.99 like which has been said phones are more expensive ect.
     
  15. Redemption80

    Redemption80 Ancient Guru

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    Covid could affect the pricing of the PS5, they may have a target that might now be too high for many people.

    It won't be 299 though, Sony won't be willing to lose that much.
    Wouldn't surprise if both consoles go the phone route and have an option for a reduced upfront payment but are tied into a multi year contract.
     

  16. Loobyluggs

    Loobyluggs Ancient Guru

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    How are they losing?
     
  17. Redemption80

    Redemption80 Ancient Guru

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    Losing that much money on every console sold.

    They don't need to do it, they can sell lots of consoles at higher prices and still get lots of PS Plus subscriptions. It's far too risky and entirely unnecessary.

    A few weeks ago this would 100% be my view as it's common sense, but things have changed because of Corona Virus as we don't know what what sort of mess the economy will be in by the end of the year and consumers might not have the funds for luxury items.
    Will things need to be cheaper then? Maybe, but companies will also be suffering as well. Sony and every other company will suffering due to less demand for luxury goods.
    I imagine they they also have concerns about the movie side of things which is pretty much on hold due to zero cinema revenue.

    No way are they selling anything at a loss anytime soon. MS could probably afford to sell at £299 though, they have larger shoulders and this lock down is probably making them more money than ever.

    They won't though, which is why i'm really starting to think both consoles will have to be sold like phones.
     
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  18. Loobyluggs

    Loobyluggs Ancient Guru

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    For a discussion on your last point, I have a thread here: https://forums.guru3d.com/threads/supply-chain-and-the-impact-of-surviving-a-global-pandemic.431273/

    For your first point: they are not losing money from the PS brand and everything that it generates for revenue, because their revenue is so high, with profit margins that are high, that it doesn't matter.

    The mistake you are making is that companies view product lines/units as individual entities. They don't. They look at total net profit, and the total net profit moving forwards is higher if there are more customers who:

    a) Use the PS Store
    b) Upgrade/update to the PS5 from PS4, rather than purchase another console from another manufacturer.

    Y'see? I doesn't matter what you net profit is from the PS5, so long as the equation remains positive.

    The spice must flow.
     
  19. Redemption80

    Redemption80 Ancient Guru

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    I 100% agree with what you said, but it's not going to be 299.

    In this day and age i could see there being a 299 or at least a cheaper option that comes with contractual 36/48 month subscription to PS Plus though.
     
    Loobyluggs likes this.
  20. Turanis

    Turanis Ancient Guru

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    Over 499$/€ and under 550$/€.
    Because new tech,guys,APU with 8c/16t and hopefully 16GB+ RAM/Vram. :)
     

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