[Megathread] PlayStation 5

[Jtbrig7390]

https://www.forbes.com/sites/erikkai.../#19bcf2236f1d

Also references the losses they took due to shitty game sales on ps3 in the first 2 years. It’s SOP for them to lose money on consoles at launch.

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Sony’s digital library is attached to an account, not a console. No reason digital shouldn’t work if BC is real(as it appears to be based on the Spider-Man demo).

1) Story was posted two months before the system dropped.
2)

According to Eurogamer's "well-placed sources" Sony will take a loss of $60 per hardware unit sold of the PlayStation 4.

This isn't proof, Its rumored opinion at best.

Sony broke even when selling the console, They made profit when someone bought a game. This is well known fact even more so when you worked as a retailer having to sell the systems.

[Witchblade77]

They sold them at cost. Retailers don't make much on game consoles, which is why accessories are always over priced, which is why every retailers tries to push attachments with console sales. $381 to make a PS4 at launch sony was not eating a loss on them, retailers where probably lucky if they where making $15 per console sold, and sony ain't paying much to ship them when they're coming in on freight boats by the 1000s with super slow shipping.

I still don't get how you guys keep randomly thinking the removal of a disc drive that will probably cost Sony $10-15 per console is going to lower the price by $50. That is like some amazing made up feel craft going on in your head.

Edit and if you need clarification on how retailers work for game consoles here is a good read for you- https://nintendosoup.com/much-money-...me-store-make/

agreed. I genuinely don't see how they could swing that much of a sale price. could i be wrong? yes. of course. but as of right now - i'm not seeing it. not at launch anyways.

[Jtbrig7390]

Sorry, but unless you have some evidence to back up your claim I find that hard to believe. It’s well known in the industry that they sell their new consoles for a loss and then turn a profit off the games being sold.

https://www.gamesindustry.biz/articl...ardware-report

According to an AllThingsD report, market research firm IHS has conducted a teardown of the PS4 and estimated Sony's cost of parts plus assembly on the hardware to be $381, while the console itself retails for $399.

The IHS estimate falls in line with comments Sony Computer Entertainment Worldwide Studios head Shuhei Yoshida made to GamesIndustry International prior to the PS4 launch last week.

"In a sense, we're doing great because we're not losing billions with the launch of PS4," Yoshida said. "In fact, we're pretty much breakeven in this launch year of PS4..."

But hey what does Shuhei Yoshida know he is just some random guy.....

In case you didn't know retailers don't make dick on console sales ether. They make between 10%-20% of the sale (depending the retailer/console maker and sometimes less). Even this late into a consoles life that percent doesn't change.

[Tech614]

Sony was eating a loss. This is well known and was reported at the time. If I'm remembering correctly it was around $50 a unit. My point wasn't that retail was making a ton of money off of them, it was that Sony wasn't selling them at $400 a pop.

https://www.engadget.com/2013/11/19/...ware-teardown/

Sony wasn't eating a loss on them. Sorry but you're wrong. Sony probably sold them to retailers for exactly what it costed to make and ship them, which means they sold them at cost. That left retailers probably making $10-15 per system sold. You keep linking to shit like the PS3, no shit the PS3 was sold at a massive loss and it's a large reason why Sony will never sell another system at a loss again. The PS4 proved they didn't need to, and they won't.

[Itori]

All this ztuff is reminding me of the ps3 flop, 8k? Ray tracing? Ssd that has to be 1tb or its not worth it? Are we looking at a console with a base cost of 1200$?

[Jtbrig7390]

https://www.engadget.com/2013/11/19/...ware-teardown/

Sony wasn't eating a loss on them. Sorry but you're wrong. Sony probably sold them to retailers for exactly what it costed to make and ship them, which means they sold them at cost. That left retailers probably making $10-15 per system sold. You keep linking to shit like the PS3, no shit the PS3 was sold at a massive loss and it's a large reason why Sony will never sell another system at a loss again. The PS4 proved they didn't need to, and they won't.

To add to your point the only one who did sell their system at a loss this gen was Microsoft but it was a small loss (at the start).

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All this ztuff is reminding me of the ps3 flop, 8k? Ray tracing? Ssd that has to be 1tb or its not worth it? Are we looking at a console with a base cost of 1200$?

Your drunk if you think the console will sniff anywhere near a $1200 price tag. The system at most is going to be $500.

[Tech614]

All this ztuff is reminding me of the ps3 flop, 8k? Ray tracing? Ssd that has to be 1tb or its not worth it? Are we looking at a console with a base cost of 1200$?

You're actually looking at a system that will cost at most $499, but nice try on the "I'm concerned!" hot take.

[Merie]

agreed. I genuinely don't see how they could swing that much of a sale price. could i be wrong? yes. of course. but as of right now - i'm not seeing it. not at launch anyways.

But the thing is by buying a system without a disc drive you're committing to giving the console maker and developer 100% of your game purchase. With physical copies the profit is dramatically smaller on account of middle man wholesale price/ manufacturing/shipping/storage etc. There is a business model to be made by taking a loss on a $50 cheaper disc driveless system in exchange for ensuring all games bought on it will generate more profit than games bought in physical form.

[Jtbrig7390]

Yeah, pretty much break even means with the games attached they made up the loss, but not quite. It didn’t start to make them money until 6+ months after release. They just didn’t lose billions.

See, there’s shipping costs attached to this. On all ends. It’s not free to ship consoles around the world regardless of what people are claiming.

Both me and Tech have provided links to prove you wrong, At this point your just baiting.

Once again your opinion vs Shuhei Yoshida......

I think ill take his opinion over yours.

[Tech614]

But the thing is by buying a system without a disc drive you're committing to giving the console maker and developer 100% of your game purchase. With physical copies the profit is dramatically smaller on account of middle man wholesale price/ manufacturing/shipping/storage etc. There is a business model to be made by taking a loss on a $50 cheaper disc driveless system in exchange for ensuring all games bought on it will generate more profit than games bought in physical form.

Actually, buying digitally barely effects Sony bottom line vs physical. They get the 30% licensing fee from 3rd party games regardless of how it's sold, which means they're probably making $15 more per first party game sold only. If the game isn't published by Sony it flat out doesn't matter to them.

[Tech614]

@Tech614 same point. You guys are confusing massive losses for any losses. They still lost money on each system, but after that owner purchased 3-4 games they were in the green.

PS4 costed $381 to make, but they needed to sell 3-4 games to be in the green?

Nice fake news mate.

They where in the green with one game purchase.

[Jtbrig7390]

No, you’ve misunderstood what your links say. Them not taking a loss in the billions in no way implies a profit or even breaking even.

This coming from the guy who claimed the system was selling at a $60 loss..

[Tech614]

https://www.forbes.com/sites/danieln.../#2638a5ead8f6

An article specifically related to official data that discusses how they lost money on the console at launch.

So we're goal post shifting to R&D cost write offs and establishing production lines now? Because you do realize that is why they lost money in 2013 yes?

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It’s why they didn’t see un upturn until late into the second fiscal quarter of release... as per the article I linked above.

No, that reason is what I just posted above, genius.

[Tech614]

Weird how their financials disagree with you...

So feel free to link anywhere in their financials where it shows they where losing $60 per system sold.

Their financials agree with me. Read them, read the pdf breakdown of costs. The losses weren't on consoles sold it was on R&D and setting up the pipelines to make the system.

You're gonna be quite sad when you are forced to buy a system with a disk drive in it eh? I can't believe you really have this delusional dream that you will be able to save $50 by losing one.

[Witchblade77]

Sorry, but unless you have some evidence to back up your claim I find that hard to believe. It’s well known in the industry that they sell their new consoles for a loss and then turn a profit off the games being sold.

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Why would I pay more for a disc drive I literally never use?

I'm not arguing that. I'm arguing that creating a siskless consoles is not going to mean savings for Sony OR you. I don't think its cost effective for them to bother creating one, especially with expectations of $50 discount. so I don't think they WILL bother. at least not at launch.

[Jtbrig7390]

I'm not arguing that. I'm arguing that creating a siskless consoles is not going to mean savings for Sony OR you. I don't think its cost effective for them to bother creating one, especially with expectations of $50 discount. so I don't think they WILL bother. at least not at launch.

Seeing how Sony pay's little to nothing for a blu-ray drive, There would be no saves at all. Even more so since the rest of the console will cost much more to make.

Sony has majority ownership in Blu-Ray it costs them almost nothing to make them for their own systems.

[Tech614]

they may not have lost $60 at launch.

You're the genius that claimed this.

I linked you the official BoM tear down. Your claims that they need to sell 3-4 games to be in the green is fucking laughable when they built each PS4 for $381.

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Seeing how Sony pay's little to nothing for a blu-ray drive, There would be no saves at all. Even more so since the rest of the console will cost much more to make.

Sony has majority ownership in Blu-Ray it costs them almost nothing to make them for their own systems.

This is the hilarious part people really think Sony can shave $50 off the cost by not including a drive. The majority of costs behind having a bluray drive is the licensing fees which Sony does not pay. They are literally just paying for the whole sale price of the drives themselves, which is probably closer to $10 then it is to $15 for them even let alone $50 lmfaoooooooooo

MS likely won't even have the balls to try an all digital console at launch let alone Sony even humoring it. And MS probably has to pay double what Sony does on average for the drives.

[Jtbrig7390]

This is the hilarious part people really think Sony can shave $50 off the cost by not including a drive. The majority of costs behind having a bluray drive is the licensing fees which Sony does not pay. They are literally just paying for the whole sale price of the drives themselves, which is probably closer to $10 then it is to $15 for them even let alone $50 lmfaoooooooooo

Perfect example is the Xbox One SAD.

MS removed it lowering the price by $50, This is a company that had to pay the fee and what it costs to buy/install them. Sony doesn't have to pay the fee and it costs them little to nothing to install them.

I don't think its even $10 anymore at this point for them.

Also the thing that is going to make Playstation stand out next gen is backwards comparability with physical media. There isn't a chance in hell that at launch they have a digital only sku.

[Ahovv]

Damn, so consoles will catch up to where PC was years ago.

[Jtbrig7390]

Damn, so consoles will catch up to where PC was years ago.

You can have a PC that does native 4K 30/60 with current gen games for under $500?

When did that ever happen?