Lets give the benefit of the doubt and say the PS5de is $430.
Now add retailer cut of 10% = $43 shipping and packaging costs = $10
It would cost sony $483 to sell PS5de
Now if they do take the $84 loss and sell 8million of them thats a $672 million loss.
If they sell at $429 thats a $54 loss per unit, and a total loss of $432 million.
These are big losses and its not factoring marketing and R+D costs.
I can see sony going 2 directions
Scenario 1 - PS5 $499 PS5de $399
There marketing leans to the digital model and they focus on the best value.
Scenario 2 - PS5 $499 PD5de $429 - 449
There marketing focuses on “true next gen” they market PS5 as a premium device that is the only true next gen console based on there next gen exclusives, next gen controller and load speeds.
I have a feeling the PS5 DE was the primary version of the console built with cost savings in mind then the disk version came after. It just looks that way based on how the consoles are designed, with the disk version looking like the slapped that thing on after the fact. No matter how crazy the cooling is on the thing I just doubt they couldn’t integrate the drive better if it was the primary version.
I’m thinking $499 Digital and $549 Disk, though they may need to drop those prices now.
I’m not entirely sold that either of these options are going to be what we end up seeing. Many of the insider leaks that I’ve seen from reputable sources have implied that the DE will be $500. Keep in mind that Sony doesn’t have anywhere near the wiggle room for loss expenditure that Microsoft does; after a decade-long fight to recoup massive losses, Sony as a whole is only worth $100 billion and has very little in liquid cash assets when compared to the net worth and available assets of Microsoft. I know we often think that Sony will do whatever they can to undercut, but history shows that they often refuse to and, even though Playstation is one of their only profitable divisions now, at the end of the day they still have to answer to their investors, many of which are adverse to such large losses on the front-end (especially in a global recession).
I think that the Xbox pricing was a controlled leak. They are comfortable with where they are.
Sony will now have to make sure that they are not out of position when it come to price. They are the clear market leader. Even a delta of $50 is not going to stop Playstation Nation from buying the PS5.
I dunno, but MS certainly put them in a hard spot.
They will either have to lose profits or market share, and likely will try to balance both. And there’s the perception thing. 449 isn’t all that different from 499, and 399 might be a cut too deep for them to take.
Certainly curious to see how this pans out, but apparently Ps5 being more expensive than expected was a gift from Sony to Ms.