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PlayStation 5 - Next gen is expensive


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3 minutes ago, wretcherd said:

With PS4 they were more powerful and cheaper, and they've "lost" on one of those fronts. Surely they have to be lower than 449.

 

Yes but more surely they have to make money - the dont have nearly limitless ability to take losses like microsoft.

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2 minutes ago, wretcherd said:

With PS4 they were more powerful and cheaper, and they've "lost" on one of those fronts. Surely they have to be lower than 449.

 

I think they'll push the faster SSD and more advanced controller as pluses, and argue that the console's strange boost architecture makes direct spec comparisons difficult. If the Dual Sense costs £70 or something ridiculous that'll perversely help support their case.

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1 hour ago, SeanR said:

V1 and V2 compatible

 

heres V3 (it’s wireless)

 

or something (new (Optional) move controllers)

To be honest I'd be happy with "we have some really exciting things happening with PSVR and we can't wait to share them with you in 2022".

 

Then I at least know I can drop some cash on a V2 and not feel screwed over when they launch V3 in February or something.

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Simple answer: Microsoft doesn't have a limitless ability to absorb losses. They have deeper pockets than Sony but not by orders of magnitude; this assumption that they'd throw money down the drain to cut the Series X and Series S launch prices was always extremely dubious, borne out by launch prices which are in line with analyst expectations.

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I’m sure Satya’s given Phil Spencer a hefty pile of cash for his division but it still has to turn a profit at some point. Microsoft’s market cap doesn’t mean that their shareholders will be happy with Xbox throwing money into a black hole forever. The old ‘infinite warchest’ argument has always seemed extremely dubious to me and belies a fundamental misunderstanding of how large businesses operate.

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9 minutes ago, Alex W. said:

Market cap isn't something I'd reach for when I wanted to figure out how much money a company has on hand.

 

Precisely my point, but I see the relative size of Microsoft in comparison to Sony used repeatedly as a reason for them to be able to run the Xbox division as some sort of charity for gamers.

 

Having said that their pricing is pretty aggressive and getting Game Pass off the ground will be costing a pretty penny so it’ll hopefully keep Sony on their toes if nothing else.

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3 minutes ago, pinholestar said:

 

Precisely my point, but I see the relative size of Microsoft in comparison to Sony used repeatedly as a reason for them to be able to run the Xbox division as some sort of charity for gamers.

 

Having said that their pricing is pretty aggressive and getting Game Pass off the ground will be costing a pretty penny so it’ll hopefully keep Sony on their toes if nothing else.

Sony can be pretty aggressive with pricing too, see the original PlayStation and of course PS4, they also have sales figures for hardware and software that support it unlike MS who’ve never hit anywhere near the figures Sony have, such as a console that has sold 100m units - Sony have had three out of four do that. 
 

The point there is that Sony does have room to manoeuvre, then again their market position might be enough for them to dismiss outright MS’ current bullish position. 
 

I still think they’ll go in hard and undercut Series X. 

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31 minutes ago, pinholestar said:

I’m sure Satya’s given Phil Spencer a hefty pile of cash for his division but it still has to turn a profit at some point. Microsoft’s market cap doesn’t mean that their shareholders will be happy with Xbox throwing money into a black hole forever. The old ‘infinite warchest’ argument has always seemed extremely dubious to me and belies a fundamental misunderstanding of how large businesses operate.

 

Yet it gets repeated before the start of every console generation as a reason why Microsoft can win.

 

Microsoft keep on changing their game strategy with Xbox every gen, with only the X360 being the closest to the bigger,better,more strategy and it was also their most successful gen so far, both in absolute and relative terms.

 

Now with their Cloud and service strategy, it'll be interesting to see if this is what the wider market responds to this generation.

 

With them subsidising both hardware and GP aggressively, they are certainly going pretty deep on the gamer stimulus this round.

 

 

I don't expect Sony to price their hardware more expensive than Microsoft, they've historically been willing to lose money upfront on their boxes and with the falling NAND prices, the pricing pressure has actually dropped since the Bloomberg report on the BOM:

 

Quote

The company’s biggest headache is ensuring a reliable supply of DRAM and NAND flash memory, with both in high demand as smartphone makers gear up for fifth-generation devices, according to people familiar with Sony’s operations.

 

NAND is now in excess supply compared to February 2020 with suppliers having to cut production to prop up pricing. The same applies to DRAM.

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If they don't announce the price people on the fence will start pre-ordering the MS consoles as they are known entities.

Money is tight for a lot of people around the world so even though Christmas feels like ages away, it's time to start planning what to spend and on what.

 

If Sony go for a premium price of £499 or above I think the leading console for the holiday season could possibly be the X-Box Series S. That is in a real sweet price spot.

 

As a lifelong Sony fan, all I can say is I hope they pull this out of the bag on Wednesday and show the games, console, UI, price and date.

I could live without seeing the UI in detail but if the price is AWOL then their attempt at building hype just looks like they're scared to announce what is inevitably going to be a crazy number.

 

I'm hoping for a price you can't resist, games that blow me away and a secret announcement or two up their sleeve - don't let me down Sony.

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From a marketing perspective, surely they need to get prices and dates out there before Series X preorders start.

 

 From a gamers perspective, of course it’s always nice to see new games, but really, I’m also at the point of wanting to know prices and dates.

 

I think the price will be the price they want it to be, and I think Microsoft’s pricing won’t change that (not that we’ll ever know one way or the other).
 

It’ll be successful anyway, it’s a PlayStation, and they haven’t really done anything crazy with it, to make it undesirable.

It’s not a race or a competition, they don’t get anything for selling the most, there are no prizes. There are however executives hoping for big fat bonuses and shareholders who won’t be all that pleased if they cut the price so much when they could have sold it for more... 

 

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