does PS5 need a price drop? will we see PS5 being sold for $299 this gen?

[Neversummer]

That won’t happen. Sony best choice to get a PS5 console at $300 to $350 is to make a native handheld using the PS5 specs & using a smaller screen then the PS portal & other measures to ensure a low price. But for the PS5 console Totoki has said how materials aren’t going low in price like previous gen’s like PS4 where materials where so low Sony could make a PS4 & sell it for $300

 

[Evilnemesis8]

When it comes to the feasibility of a permanent price drop in the near future, let us look to this image from the report:




Let's look at the FY24 forecast...

Down at the Operating Income part:

Decrease in hardware losses due to lower unit sales

....It ain't happening.

 

[FatKaz]

When it comes to the feasibility of a permanent price drop in the near future, let us look to this image from the report:




Let's look at the FY24 forecast...

Down at the Operating Income part:


....It ain't happening.

With a 18 million forecast for next FY, something has to be in the plans.

Can't imagine them relying on gta6 for that forecast.

 

[Muddasar]

Price drop the base PS5, release the PS5 pro and then watch GTA6 do its wonders.

 

[anonpuffs]

When it comes to the feasibility of a permanent price drop in the near future, let us look to this image from the report:




Let's look at the FY24 forecast...

Down at the Operating Income part:


....It ain't happening.

Interesting, seems to indicate that they're losing money per unit again? Or maybe it's due to an increase in the share of digital edition?

 

[Evilnemesis8]

Interesting, seems to indicate that they're losing money per unit again? Or maybe it's due to an increase in the share of digital edition?

It certainly would seem so.

There's a reason why they've increased the price and Microsoft has as well(in certain regions) even though they're clearly a long distant 3rd place and would have incentive to do so.
The two HD machines seemingly have increased in cost instead of decreased, I'm not an expert so I have no idea why that is.

But they're pretty direct here as to the current reality.

With a 18 million forecast for next FY, something has to be in the plans.

Can't imagine them relying on gta6 for that forecast.

You would think there's a plan, but as of right now, we're not seeing it.
Considering missed forecasts in recent times, we can't be sure of anything really.
It's certainly not due to 1st party in the next FY and they're saying increased sales in 3rd party content so...

 

[Gediminas]

With a 18 million forecast for next FY, something has to be in the plans.

Can't imagine them relying on gta6 for that forecast.

is it the same forecast as it was previously? 25M equivalent to 18M now? uch... challenging year is ahead..

 

[FatKaz]

is it the same forecast as it was previously? 25M equivalent to 18M now? uch... challenging year is ahead..

I would hope they are being conservative after the last forecast ended being downgraded by such a huge amount.

Without a price drop/gta6, 18 million seems tough.

Maybe pro helps a bit? IDK

Maybe sony are confident on GTA6 making it this FY.

I still think price drop comes for the holidays alongside the pro.

 

[Nhomnhom]

It needs future game announcements above anything else, extremely lackluster generation for Sony first party games so far, not nearly as exciting as PS4 was at the same point.

Price drop is mostly needed so that the PS5 Pro can be releases at a reasonable price for what it is.

 

[ethomaz]

It won't happen I guess.
Tech is not evolving fast enough for price cuts.

 

[jimmy289]

I don't think it will ever reach 299. And no they won't reach ps4 sales. Swtich 2 won't reach switch 1 sales. Series won't reach xbox one sales.

 

[ToTTenTranz]

Console sales have slowed down and an economic crisis is looming over many western countries (especially Europe) so yes. Sony needs to lower the price of the PS5 to increase adoption.
It'll probably happen with the introduction of the PS5 Pro. IMO it should be like 300-350€ discless PS5, 500-550€ discless PS5 Pro, 50-65€ for disc add-on.

depends if the savings offsets the cost of tape-out, which can be tens of millions of dollars, or even more on the more advanced nodes.

A $100 million investment for a process shrink is peanuts if Sony manages to sell even just 5 million more consoles thanks to the price cut. The average software attachment ratio is pretty good on Playstation gamers.

 

[Johnic]

Definitely.

 

[Danja]

I don't think it will ever reach 299. And no they won't reach ps4 sales. Swtich 2 won't reach switch 1 sales. Series won't reach xbox one sales.

They will but it may take another 3 - 4 years. I don't see them phasing out the PS5 as quickly whenever PS6 comes out.

 

[jimmy289]

They will but it may take another 3 - 4 years. I don't see them phasing out the PS5 as quickly whenever PS6 comes out.

My predictions aren't even that insightful. Just seems like common sense. Its like with psvr2 came out and people were believing it would sell more than psvr1. Some thought over 10 million. No friggin way.

 

[anonpuffs]

Console sales have slowed down and an economic crisis is looming over many western countries (especially Europe) so yes. Sony needs to lower the price of the PS5 to increase adoption.
It'll probably happen with the introduction of the PS5 Pro. IMO it should be like 300-350€ discless PS5, 500-550€ discless PS5 Pro, 50-65€ for disc add-on.





A $100 million investment for a process shrink is peanuts if Sony manages to sell even just 5 million more consoles thanks to the price cut. The average software attachment ratio is pretty good on Playstation gamers.

Again, depends. 5 million units on a $100m fixed cost is an extra $20/unit, then on top of that you're slashing the unit price. On top of that people waiting for a price drop probably aren't highly motivated users with a lot of cash or interest in gaming, so the attach rate of games will be lower. I could definitely see it being a calculation that needs to be balanced.

 

[Etifilio]

depends if the savings offsets the cost of tape-out, which can be tens of millions of dollars, or even more on the more advanced nodes.

every playstation has multiple revisions in size of chips, this is a nothing burger, the Slim will have at least one internal revision, that's why i think after the revision they'll be able to drop the price significantly

 

[Etifilio]

349.99 is the magic number for the slim

slim without a disc drive for $349, with a disc drive for $399, Pro model for $499, that would be the ideal price for the PS5 family of consoles in the next 4 years

 

[Etifilio]

My predictions aren't even that insightful. Just seems like common sense. Its like with psvr2 came out and people were believing it would sell more than psvr1. Some thought over 10 million. No friggin way.

another one they need to price cut, $549 is too much for a device that depends on another $499 device, $399 for PSVR2 would be an ideal price point compared to the Quest

 

[Etifilio]

That won’t happen. Sony best choice to get a PS5 console at $300 to $350 is to make a native handheld using the PS5 specs & using a smaller screen then the PS portal & other measures to ensure a low price. But for the PS5 console Totoki has said how materials aren’t going low in price like previous gen’s like PS4 where materials where so low Sony could make a PS4 & sell it for $300

this is because of inflation, i don't think it has anything to do with the materials themselfs