What pricing and marketing strategy will Sony choose?

There was a leak that the PS5 BOM was $450.

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.

  • PS5 $499 PS5de $399
  • PS5 $499 PS5de $429-449

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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.

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I’m hoping for option 1 but expecting option 2.

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Im finding a really hard time calling it.

If I was in Jim Ryans shoes on one hand I could price at $499±$449 and its will likely still sell out, Even with the bad press.

It become a question, what would nearly a billion dollers get them? will it get them more sales when they will likely sell out anyway?

It will be Option 1. I’m not liking the DE trend, personally. However I understand the reasoning

Here is one of the options Sony will give you. No joke (I trust Wario64’s feed)

This is actually interesting since the Digital and the Disk version are 100 apart. Makes me think that might be the case for the normal version.

Pound Sterling That’s more than just a $100 difference

It’ll just be more gold needed.

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 am thinking option 1.

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.

According to this they have about $30 billion which os still plenty to have short term hits for long term gain.

Microsoft jave $133 billion according to the website, so while Microsoft have more sony have plenty even of SCE get 10% to play with.

That is true, but sometimes the region will not necessarily correlate to the US exchange. Also, as someone mentioned a little more gold will be required.

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.

I’m still betting on $550 PS5, $450 PS5 DE.

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maybe something like 429 ?

Possible, but the problem if intermediate prices is that the perception is affected.

Like 399 is just 30 dollars shy of 429, but it just seems much lower.

This is what I’m thinking, too. Though I could maybe imagine a $449 price tag. Don’t think the disc drive is as much a cost driver to warrant $100 retail price difference, not seeing $399 at all.

The switch was 330 in Germany

Well, since the SSD can cure Alzheimers and handle mars expeditions on its own, it should be very expensive. But Sony have found a way to make that very, very cheap due to specialness so my guess is:

$199 !