Let’s be a bit more realistic here.
PS5 with disc was probably profitable (and very little) around middle 2021… before that it wasn’t and after the changes in global economy (increase price in parts and issues with the currency exchanges) it become non-profitable again. Plus PS5 DE was never profitable.
This much I feel holds true, and was probably the case up to that point.
Taking US alone as base (where there is no price rise) I believe PS5 cost to Sony in middle 2021 was around $475… today it is probably around $525 or a bit more… that including the move to 6nm because in 7nm it could be even more expensive.
I thought the main selling point of 6nm was that it was going to be cheaper than 7nm? When did that change?
Components all rise in price due the global economy and that affected all devices including videogame consoles.
If even Sony I believe is today subsiding PS5 with a 270mm2 chip in 6nm imagine a Xbox with a chip of 380m2.
I believe in Phil in that case… Series S cost is probably around $400 and Series X cost is probably around $700.
PS5 DE and PS5 are probably around the same framerate j cost terms (the BD disc drive costs less than $20) and I believe it is around $550.
I mean, is it possible? Yeah. But I really don't see Series X in particular costing $700 in total manufacturing costs. For one, I think the APU is more like 360 mm2 not 380mm2 or at least that's what tech dudes who did analysis on the APU scans like last year or so.
Maybe Series S does push closer to $400 to produce but I can't see Series X pushing near $700; the APU costs between PS5's original 320 mm2 and Series X's 360 mm2 would not result in anything like that price difference for starters, and if disc PS5 was already profitable by mid 2021 then at some point shortly after launch production, assembly etc. costs were under $499 for that system and Series X's maybe were around $535 - $549 in total (IMO).
If 6nm is more expensive than 5nm I'm not necessarily sure the price increase per mm2 is
THAT much, and increase in component pricing would just affect things aside of the APU. All that in addition to, MS (and Sony) usually sign contracts for supplies in bulk for a decent amount of time covered, at prices legally binding at the time the contracts are signed.
Sure the contracts vary depending on manufacturer and product but for Series X to be costing MS $700 to manufacture would require (IMO) virtually ALL of their signed contracts having expired, all of the components they needed to re-up on contracts for increasing in price, all of their suppliers being particularly price-gouging,
AND orders on Series X consoles dropping so much that the bulk pricing for wafers on even 7nm would noticeably increase. And personally I think only the last of those four would have occurred (and some of the second point, FWIW).
. Was wondering why so many other answers I've seen on the topic do not factor in something like oversupply of Xbox systems in the distribution channels (namely Series S).
