PlayStation 5 supply could be limited at launch due to high price

midian182

Posts: 6,187   +51
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According to Bloomberg’s report, which cites anonymous people “familiar with the matter,” the limited production run isn’t a result of Covid-19 disruption, as one might expect. The actual reason is said to be its price.

Back in February, Jefferies Group warned that the closure of many factories in China would lead to the Xbox Series X and PlayStation 5 being delayed, or at least suffer from restricted stock. Analyst firm DFC Intelligence later echoed this belief. But Microsoft boss Satya Nadella said the company’s console was still on track for a 2020 launch, while Bloomberg’s sources say Covid-19 has only affected Sony’s promotional plans for the PS5, not its manufacturing schedule.

The problem, it seems, is the price. Sony has revealed many of the PS5’s specs, including an eight-core Zen 2 CPU, custom AMD GPU, and solid-state drive—hardware that pushes up the cost. High demand for DRAM and NAND flash memory is also causing issues for the company.

We’ve already heard that the console’s MSRP is proving to be a sticking point. It was predicted to be $470 just to break even, though some game developers creating titles for the console think a $499 to $549 price is more realistic. With such a high cost, Sony expects PS5 demand to be more subdued than its predecessor. There will reportedly be 5 to 6 million units released before March 2021, whereas the PS4 sold 7.5 million in its first two quarters, and that was with a delayed release in Japan.

Mass production of the PS5 is set to begin in June, which could be when the console, and perhaps its price, is officially unveiled.

Earlier this month, Sony revealed the PS5’s successor to the DualShock controller: the DualSense. It features new haptic feedback elements, a Create button, a new design, and other bells and whistles.

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Vulcanproject

Posts: 1,273   +2,124
Projected economic forecasts for later this year I wouldn't be at all surprised if sales are far below the opening years of previous generations, especially if they end up starting at $499. Could be quite a long time before next generation machines have a significant share of the overall gaming market. Little did they know that the world was about to enter a large downturn in productivity, otherwise they probably wouldn't have gone for such an expensive design.

Series X if anything looks even more expensive to manufacture.
 

ZedRM

Posts: 342   +181
Would you pay up to $549 for one?
Short answer? Nope! When it comes down to $350 I'll be in, not until then. Oh and that $350 better include full support for 4K Bluray player ability.

And no, I'm not getting the next iteration of microsofts xbox ilk.
 
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dangh

Posts: 165   +194
Im ready to pay up to 600, and already made preorder. Hopefully it won't get delayed. I think a lot of people will want to get one asap.
 
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DZillaXx

Posts: 116   +166
Projected economic forecasts for later this year I wouldn't be at all surprised if sales are far below the opening years of previous generations, especially if they end up starting at $499. Could be quite a long time before next generation machines have a significant share of the overall gaming market. Little did they know that the world was about to enter a large downturn in productivity, otherwise they probably wouldn't have gone for such an expensive design.

Series X if anything looks even more expensive to manufacture.
I doubt the Xbox Series X is going to be any more expensive to manufacture. The cost difference between the SoC for the PS5 and XSX is not as much as people would think. These are high volume contracts so cost is already pretty low compared to consumer prices. MS is also going to be using these chips in their cloud gaming servers.

While we do not know the Physical hardware of the PS5, if they plan on going with the same type of design as their past consoles. Their cooling system is going to be the more expensive. XSX is using a overall pretty cheap cooling design. A large 130mm fan and a large vapor chamber cooler, these parts are not that expensive in the long run. Especially for mass market items. If the PS5 isn't a large box, expect a more complex system. As Sony stated they want the system to be quiet. The SSD cost of the PS5 is going to hurt them the most. Every channel needs its own memory chip. As well as higher cost of the PS5 controller.

Lets not forget that these consoles will no doubt be using about the same amount of power. Mark Carney said in his ps5 spec release that a 10% drop in GPU clock speeds results in a 27% power reduction. And what we know from RDNA1, if a 10% drop in clock speeds is effecting the power consumption that much. They are pushing the clock speed pretty high, out of the GPU Efficiency power curve.

Expect the Price of the XSX to Match the PS5 if not even under cut it slightly. MS isnt taking chances this round. The Cost to manufacture each consoles is about the same, and with sony using a more expensive controller. They will most likely take more of a hit with per sale cost. MS can easily take the hit on selling their console as a loss. They are one of the worlds most profitable companies. Sony as a company isn't in the same league. They will rely on brand awareness. But considering in America Xbox has about 40% of the market share, and still extremely competitive. MS taking back that market would be a big win. As that would be a big push for developers to go back to the xbox as lead development platform.

Even if the new consoles are $499, that isn't that much money. It's the cost of a mid range phone, and less then half of a monthly rent/mortgage payment. For many Americans that around 1/2 to 2/3 of your weekly take home pay. For a device that will entertain you for 6+ years. Pretty cheap investment.
 
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Fearghast

Posts: 289   +187
I seriously do not get the price discussion, might be because I buy more than 5 games during the life of my gaming rig.
Would you rather have lower price console and let the manufacturer raise its licence so you pay more for your games?
 

ColdDeck

Posts: 16   +9
Lets not forget that these consoles will no doubt be using about the same amount of power. Mark Carney said in his ps5 spec release that a 10% drop in GPU clock speeds results in a 27% power reduction. And what we know from RDNA1, if a 10% drop in clock speeds is effecting the power consumption that much. They are pushing the clock speed pretty high, out of the GPU Efficiency power curve.
Couldn't agree more. No way PS5's gpu will run sustained 2.23 ghz, maybe in menu screens? But in games thanks to them using a dynamic clock, it should be pretty efficient. They will still need to bin the chips to make sure they run at 2.23ghz at a low voltage, so that will keep costs up also.

 

Fearghast

Posts: 289   +187
This is so amusing, watching console players arguing over power of the system :D GHz, VRAMS, GPUs.
So funny, like it even matters on console.
 

DZillaXx

Posts: 116   +166
This is so amusing, watching console players arguing over power of the system :D GHz, VRAMS, GPUs.
So funny, like it even matters on console.
Unlike what some people may think, the power of a system at launch does come in to play. People will look at price first, that was always a given. But the Power Crown is going to play its part in the choice, especially when they are the same price. Also Sony's odd storage size isn't going to look as good on the box. 825GB on PS5 vs 1000GB on XSX.

For the xbox one, I wasn't going to pay more for a weaker console. I got the PS4 right away. PS4's launch lineup was weak IMO, and the console really didn't get good games till years later.

Now with Game Pass, a smooth and perfect transition to the next generation with games playing better and getting more features with the better hardware. Being able to pop in some of my old 360 games like red dead and play them with improved graphics and performance. Xbox has been on a roll and have done everything right. Sony is not going to have a easy win this time around, MS is making the xbox very compelling.

Sony has not done a good job with showing off the PS5, and not really sure if my PS4 games will get any type of boost on the new console. I just know they will run, and they may run better.

As for launch titles. Xbox is going to have Halo day one. Enough said. Sony... I'm hoping for God of War squeal. I'll have to buy both at launch XD
 

Vulcanproject

Posts: 1,273   +2,124
I doubt the Xbox Series X is going to be any more expensive to manufacture. The cost difference between the SoC for the PS5 and XSX is not as much as people would think. These are high volume contracts so cost is already pretty low compared to consumer prices. MS is also going to be using these chips in their cloud gaming servers.

While we do not know the Physical hardware of the PS5, if they plan on going with the same type of design as their past consoles. Their cooling system is going to be the more expensive. XSX is using a overall pretty cheap cooling design. A large 130mm fan and a large vapor chamber cooler, these parts are not that expensive in the long run. Especially for mass market items. If the PS5 isn't a large box, expect a more complex system. As Sony stated they want the system to be quiet. The SSD cost of the PS5 is going to hurt them the most. Every channel needs its own memory chip. As well as higher cost of the PS5 controller.

Lets not forget that these consoles will no doubt be using about the same amount of power. Mark Carney said in his ps5 spec release that a 10% drop in GPU clock speeds results in a 27% power reduction. And what we know from RDNA1, if a 10% drop in clock speeds is effecting the power consumption that much. They are pushing the clock speed pretty high, out of the GPU Efficiency power curve.

Expect the Price of the XSX to Match the PS5 if not even under cut it slightly. MS isnt taking chances this round. The Cost to manufacture each consoles is about the same, and with sony using a more expensive controller. They will most likely take more of a hit with per sale cost. MS can easily take the hit on selling their console as a loss. They are one of the worlds most profitable companies. Sony as a company isn't in the same league. They will rely on brand awareness. But considering in America Xbox has about 40% of the market share, and still extremely competitive. MS taking back that market would be a big win. As that would be a big push for developers to go back to the xbox as lead development platform.

Even if the new consoles are $499, that isn't that much money. It's the cost of a mid range phone, and less then half of a monthly rent/mortgage payment. For many Americans that around 1/2 to 2/3 of your weekly take home pay. For a device that will entertain you for 6+ years. Pretty cheap investment.
Series X is almost certainly more expensive to manufacture, at least the machine itself. The cooling system alone is not cheap for a console. The spine of the machine has a cast piece of aluminum which then ends up in a CNC machine by the looks of it! Nothing like that has ever been seen before in a console. Heavy duty, expensive cooling design.

Also the SoC is definitely going to end up more expensive. It's not going to be hugely more expensive but it'll be more. The GPU is 40 percent larger in terms of die area. The highest single component cost for consoles has traditionally been the SoC and that won't change this time around either.

The power consumption of Series X will also end up quite a bit higher, best part of 300 watts. Whereas Sony's machine won't likely be more than 250, probably less. Less cooling needed for Sony then, especially since their method has a completely known maximum TDP under any circumstances. Series X relies on a good old worst case scenario. Little bit costlier SoC, more expensive cooling, more expensive VRM and power supply design.

Needless to say although I expect it to be more expensive to manufacture it won't be more than say 15-20 percent.

The mitigating factor here is Sony have what looks to be a more expensive controller. They have spent their budget elsewhere.

Both of these machines are likely to come in around $500, probably even more. Which is a lot for console. Everyone that compares it to the cost of a phone misses the point, because they aren't phones, which many people consider essential technology in their lives. For leisure and work. Carried everywhere at all times, used constantly all day. These are games consoles. Essentially toys, bottom line.

Earlier adopters are always willing to pay whatever it takes, but average family Joe is the mass market consoles need to convince to expand the user base quickly.

For them a $500 console needs a lot of justification. PS3 showed how difficult it can be to shift consoles quickly when you price out the masses. I see what the economic situation is looking like for the next year, probably next few years and it doesn't bode well for $500 luxuries.

When you hear 20 million people in the U.S are now out of work compared to a month ago it should start to dawn what a difficult sell either of these consoles is going to be to the masses.
 
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DZillaXx

Posts: 116   +166
Series X is almost certainly more expensive to manufacture, at least the machine itself. The cooling system alone is not cheap for a console. The spine of the machine has a cast piece of aluminum which then ends up in a CNC machine by the looks of it! Nothing like that has ever been seen before in a console. Heavy duty, expensive cooling design.

Also the SoC is definitely going to end up more expensive. It's not going to be hugely more expensive but it'll be more. The GPU is 40 percent larger in terms of die area. The highest single component cost for consoles has traditionally been the SoC and that won't change this time around either.

The power consumption of Series X will also end up quite a bit higher, best part of 300 watts. Whereas Sony's machine won't likely be more than 250, probably less. Less cooling needed for Sony then, especially since their method has a completely known maximum TDP under any circumstances. Series X relies on a good old worst case scenario. Little bit costlier SoC, more expensive cooling, more expensive VRM and power supply design.

Needless to say although I expect it to be more expensive to manufacture it won't be more than say 15-20 percent.

The mitigating factor here is Sony have what looks to be a more expensive controller. They have spent their budget elsewhere.

Both of these machines are likely to come in around $500, probably even more. Which is a lot for console. Everyone that compares it to the cost of a phone misses the point, because they aren't phones, which many people consider essential technology in their lives. For leisure and work. Carried everywhere at all times, used constantly all day. These are games consoles. Essentially toys, bottom line.

Earlier adopters are always willing to pay whatever it takes, but average family Joe is the mass market consoles need to convince to expand the user base quickly.

For them a $500 console needs a lot of justification. PS3 showed how difficult it can be to shift consoles quickly when you price out the masses. I see what the economic situation is looking like for the next year, probably next few years and it doesn't bode well for $500 luxuries.

When you hear 20 million people in the U.S are now out of work compared to a month ago it should start to dawn what a difficult sell either of these consoles is going to be to the masses.
$500 in 2020 is not the same as $500 in 2006.

$500 is not a lot of money. And as a media hub in general that is going to be used a fair amount over the next decade. $500 wouldn't be a bad starting price. But my money is on $399. I have a feeling MS is going to pick this price point and force Sony to sell their console as a loss as well.

Like I said before, $500 is around 1/2 to 2/3 of many workers weekly take home pay. And most of the workforce bring home $500 or more a week. I don't see this price to be a issue. This is the target audience and the ones that are most likely to buy games when they drop for full cost. The people game companies depend on to make money.

In 2006 this was not the case and $500 was one of the major investments one would have to make to get into HD gaming. HD TV's were expensive. While you can get a 65" TV for $400 now. In 2006 getting a 32" 720p TV would still set you back around $1000+

Lets not forget that while games are still $60, there are nearly always season passes or DLC packs that bring the total cost at or above $100. Where as in 2006 you got a fully fledged game with everything it would ever come with for $60.

And considering these new consoles are drop in replacements, allowing you to continue to use your old games/devices. Especially on the xbox side. The choice to upgrade is made easier.

The 360 & PS3 were not drop in replacements. Sure you could play same xbox games on the 360, like halo 2. But they didn't just replace what you had perfectly. Anyone that played Halo 2 on the 360 vs the original xbox knows the slow downs and glitches that happen.


Thing is a $500 phone is a mid range phone. Considering higher end phones are over $1k. $1k phones are considered a luxury, and can be considered in the same way as a console. You don't need to spend that much on a phone. Yet a big chunk of the population does. Consoles remain relevant for a Decade. Phones do not.

Different times we live in
 

Vulcanproject

Posts: 1,273   +2,124
$500 in 2020 is not the same as $500 in 2006.

$500 is not a lot of money.
This really is a showstopper in this discussion for me. When you say $500 in 2020 isn't a lot of money.

Because it still is, for a console. Consoles are not phones, they do not warrant price comparisons. They never have. It's not like expensive phones are a new phenomena. This comparison still baffles me when people use it.

Comparing a next gen console to a phone is like saying an $80k sports car looks cheap next to a small house. Except nobody needs a sports car to live, but most people consider housing essential.....

To you $500 might not be a lot and you can justify it personally perhaps by looking from that angle, but you aren't convincing a wide majority. For a mass market it's far too much to sell rapidly. All console gaming history only shows people shy away from expensive launch consoles, regardless of economic conditions.

Taking those into account here for a mass market in a recession with the largest unemployment figures for 90 years it's definitely too much to sell widely.

The reason this very article exists is to explain why Sony don't expect booming huge launch sales and possibly intend to cut back production! That's why you are in here in the first place :neutral:
 

Theinsanegamer

Posts: 2,061   +2,619
$500 in 2020 is not the same as $500 in 2006.
$500 is not a lot of money.
Thing is a $500 phone is a mid range phone.
Different times we live in
Spoken from a place of privilege, when dumping $500 on a console "isnt much". $500 is a lot of money to drop at once. And $500 is not a midrange phone. $500 is high end, $650 is flagship, anything higher is utter lunacy. $200-300 is proper midphone territory. Many who own those expensive phones pay for them over the course of 1-2 years, not up front, and few to none are willing to do that for a home console.

The economy in 2006 was great. In 2020 most only felt the economy improving in the last 1-2 years. Buying power was only just now getting to pre 2008 levels. $500 aint cheap today, and with looming debt bubbles and the corona crash, 2020 is shaping up to be a repeat of 2008 for home consoles, ridiculously expensive hardware maligned by a poor economy resulting in poor sales.

The poor sales of the PS4 pro/XboneX in context of the standard PS4/Xbone should have clued console makers in that there are not a ton of people willing to dump even MORE on a new console.
 
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kira setsu

Posts: 285   +219
I really dont understand the debate over the price of a console, if it needs to be 600 let it be 600.

OR sony can pull off the ps4/ps4 pro ripoff technique of releasing a version thats underpowered which gamers will call "affordable" then release another version with ever so slightly bumped up specs which will cost more, you'll buy both and then be out of more cash than if you just bought a single console with a higher cost on it, I think thats what sony is dealing with, they know they can ripoff the fans but actually dont want to, ps3 was everything people wanted but when it came time to pay up...*crickets*. Skip ahead and those same people have probably burned 8 or 900 dollars cause they bought the ps4 twice, but it is nice the pro can run H:ZD at a locked 30fps(sarcasm, and truth)

its a hobby, you dont need the thing on day 1 anyway since we all know many games will be released on both the new systems and the currents, and when have launch games been great anyway, what game at launch did you play til the rigs death? none, thats how many.

save up, if you cant get it the first week then wait cause its not a big deal, let them release a well made and quality product, see if its worth it then wait til you can acquire it, the price will slowly go down and deals will hit, shoot maybe it'll have a heating issue that pops up and you dodge a bullet, ya never know.
 

CBTex

Posts: 104   +182
That title doesn't make sense. High price doesn't limit supply. It would increase supply.

So Sony is going to limit the number available for sale because it costs a lot, which will drive the secondary market even higher?

Sony is afraid their console won't sale because they can't price it cheap enough to create sufficient demand.
 
My thoughts are this coronavirus has breathed new life into sales of all game consoles, unfortunately for xbox ,( if what I read is correct) they have stopped production of the xbox 1x and switched production t series x in order to meet demand for holiday season .
Sony is cashing in on ps4 sales yet again if said is true, and sony feels that more ppl with ps4 means more ppl waiting to buy a ps5 then chose to put nothing on the shelf after the 1st batch sells then I personally would consider and compare my loss selling below cost to coming up short on machines while ppl are still shopping.
My son ,, between his moms and I has a ps4 pro 3 slims and 2 vr headsets.
Come next holiday season there will be a new console in the house hopefully a ps5 but if unavailable serious consideration will likely put a series x under the tree
 

texasrattler

Posts: 1,018   +454
For the the money side of things. People need to stop thinking of it as just a gaming console which its not any more. It does more than that now. A high end phone nor a console is a need but are wants. All can get a cheap phone but will lose certain features. A lot of people wont do that. So now a high end phone costs $500 and up, you want that one. Same goes for a console, you want it. A $500 phone can last you say 4 yrs maybe but if you get a console its lifespan will likely be 6 yrs or more. Phones can get lost or stolen but can get replaced. Consoles rarely ever get lost but can get stolen. Phones wont get updates forever. Consoles will get updates much longer. So from a inventment side, the consoles is a better inventmwnt comparing it to a high end phone. One could always get a leaser phone and still buy a console. We need some kind of phone in our lives but we dont need a $500 phone that will likely get lost or stolen. Whereas if a console you will get better entertainment out of it and more enjoyment. When people want to complain over a phone and a console, get a cheap phone n buy whatever console you like. Its called a compromise. Thats just one way of getting around the whole $500 console is too expensive. Again tho stop thinking of it in one way when it can do more and even as I said give you more enjoyment.
Phones were once thought of a device that made calls only, now look at them. Texting, video calls/chat and games can all be done on them.
 

Fearghast

Posts: 289   +187
For the the money side of things. People need to stop thinking of it as just a gaming console which its not any more. It does more than that now. A high end phone nor a console is a need but are wants. All can get a cheap phone but will lose certain features. A lot of people wont do that. So now a high end phone costs $500 and up, you want that one. Same goes for a console, you want it. A $500 phone can last you say 4 yrs maybe but if you get a console its lifespan will likely be 6 yrs or more. Phones can get lost or stolen but can get replaced. Consoles rarely ever get lost but can get stolen. Phones wont get updates forever. Consoles will get updates much longer. So from a inventment side, the consoles is a better inventmwnt comparing it to a high end phone. One could always get a leaser phone and still buy a console. We need some kind of phone in our lives but we dont need a $500 phone that will likely get lost or stolen. Whereas if a console you will get better entertainment out of it and more enjoyment. When people want to complain over a phone and a console, get a cheap phone n buy whatever console you like. Its called a compromise. Thats just one way of getting around the whole $500 console is too expensive. Again tho stop thinking of it in one way when it can do more and even as I said give you more enjoyment.
Phones were once thought of a device that made calls only, now look at them. Texting, video calls/chat and games can all be done on them.
Phone were tranfered into smarthones - little PCs with decent camera setups.
BUT consoles evolved from being able to play games to play games and ... watch youtube ... and ... Netflix aaaaand .... kinda surf web pages.
Not so sure buddy it's still more than upgraded NES + Android TV :D
Oh, that was not nice, but I hope you get my point of view.
 
Was my comment from yesterday removed because I dropped a few vulgarities? I figured the auto word censoring with asterisks was acceptable. Sorry if I stepped over the line but I wish that I could be allowed to access my comment to edit and resubmit it as I believe the overall content was relevant.
 

Fearghast

Posts: 289   +187
Was my comment from yesterday removed because I dropped a few vulgarities? I figured the auto word censoring with asterisks was acceptable. Sorry if I stepped over the line but I wish that I could be allowed to access my comment to edit and resubmit it as I believe the overall content was relevant.
Censoring with asterix is such a funny, contraproductive, way of dealing with something.
If you do not know what f**k means, first thing most people do, is to open Google and find out :D
It's like blurring people mouths when they are swearing, it's almost surreal how dumb that concept is.