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PS5's Price Could Depend On One Specific Factor

"It is very difficult to discuss anything about the price at this time."

38 Comments

2020 is a big year for the PlayStation brand, as Sony is releasing the PlayStation 5 sometime this holiday--an exact release date hasn't been confirmed. We've learned a little about the next-generation console so far, like its faster loading times, but there are many questions that remained unanswered beyond the exact date. One big question concerns pricing.

What will the PS5 cost? Sony management responded to that question during an earnings call, saying those details might depend on other factors, including the competition. This is presumably a reference to the Xbox Series X, which also doesn't have a price point yet.

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"What is not very clear or visible ... is because we are competing in the space," CFO Hiroki Totoki said, though a translator. "So it is very difficult to discuss anything about the price at this time. Depending upon the price level, we may have to determine the promotion that we are going to deploy, and how much cost we are prepared to pay. So it is a question of balance."

It is difficult to speak concretely about PS5 pricing at this stage, Totoki said, but fans and investors can be sure that Sony will "choose the optimal approach."

For comparison, the PS4 launched in 2013 at $400 USD, while the Xbox One--which included a Kinect with every console--debuted the same year at $500 USD.

Currently, Sony is focused on nailing down the production and sales elements of the PS5 launch strategy, in addition to securing the right volume of consoles for launch, Totoki said.

The PS5 launches this year as the PlayStation 4 continues to drop off in sales. The 6.1 million PS4 consoles sold during the holiday quarter is down 25 percent year-over-year, representing the lowest holiday sales figure ever for the console. In total, the PS4 has now sold 108.9 million units, which makes it the second most successful console in history--it only trails the PS2 (150 million sales).

In other news, Sony has launched the PlayStation 5 website--but don't expect much in the way of useful information from it just yet.

Got a news tip or want to contact us directly? Email news@gamespot.com

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sladakrobot

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Neither MS or Sony will announce the price before the launch.
Both of them will price their console on stage (November?)like they always did.
These kind of articles makes no sense to me.

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Thanatos2k

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Edited By Thanatos2k

"You announce first."

"No YOU announce first!"

"....We have no comment about the price at this time."

"We also have no comment about the price at this time."

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Crazy_sahara

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With Xbox one X, and ps5 I cannot see a strong difference, why well (yes it's true ps5 will offer a quick access point for ssd's) and so can the Xbox one X, it can also access a ssd bay but you'll need to open the console, where that could be the tipping point for most consumers.

Either way I cannot see anyone rushing out for 8k TV's unless we are talking about the Papper wall TV 8k sure, but that's way to expensive to factor in buying a Xbox series X(that is if it can achieve those speeds) but back to my question in-regards to ps5 and Xbox one X, yes it will be powerful then the xbox1x, but compared to what each console can achieve is also marginal because the output will be the same for many TV's in 4k, let alone 1080p still widely used.

So yes the Xbox one X will still be a powerful competitor towards the ps5 depending if your willing to go down that path.

But the elephant in the room is Xbox series X pro.

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wtf_666

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@Crazy_sahara said:

Either way I cannot see anyone rushing out for 8k TV's unless we are talking about the Papper wall TV 8k sure, but that's way to expensive to factor in buying a Xbox series X(that is if it can achieve those speeds) but back to my question in-regards to ps5 and Xbox one X, yes it will be powerful then the xbox1x, but compared to what each console can achieve is also marginal because the output will be the same for many TV's in 4k, let alone 1080p still widely used.

Long a$$ sentence!

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Gamerforlife96

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Edited By Gamerforlife96

@Crazy_sahara: dude power isnt a factor look at xbox one x Microsoft didnt release sells number bc it sold like shit

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Crazy_sahara

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Edited By Crazy_sahara

@gamerforlife96: that's to be seen, if it's more powerful then PS4 pro, but marginally 30% slower then ps5, (with out mentioning ps5 pro, or Xbox series X pro) then the Xbox one X stil delivers what the ps5 can do play 4k games at 60fps on some titles, and that would be a huge selling point because it's more powerful then PS4, yet cheaper then ps5 yet has a plethora of supported games on game pass so that could hurt sony in the long run with plenty of consoles of different divisions backwards compatible, it still gives Microsoft a freaking huge ground to breath in and focus on implementing better DX 13 capabilities in their graphics pipeline.

Since Sony wants to distance them selves from PS4 yet inform the consumer ps5 is where sony lies it could really piss customers of as games new and old are built for ps5 and that my dear sir is called nail in the coffin.

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wtf_666

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@Crazy_sahara said:

@gamerforlife96: that's to be seen, if it's more powerful then PS4 pro, but marginally 30% slower then ps5, (with out mentioning ps5 pro, or Xbox series X pro) then the Xbox one X stil delivers what the ps5 can do play 4k games at 60fps on some titles, and that would be a huge selling point because it's more powerful then PS4, yet cheaper then ps5 yet has a plethora of supported games on game pass so that could hurt sony in the long run with plenty of consoles of different divisions backwards compatible, it still gives Microsoft a freaking huge ground to breath in and focus on implementing better DX 13 capabilities in their graphics pipeline.

You broke your own record for longest sentence.

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Crazy_sahara

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@wtf_666: Welcome to the internet, or CBS televisions subsidiary umbrella division.

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totallytc

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My guess they will have several models to avoid losing any price war to Microsoft. Top version will likely sell for 499. Stripped-down version 399 or lower depending on xbox. They'll lose money on the stripped-down version but they can write it off as needed to avoid losing to micro on price.

499 will sell fine since consumers have been hit with 1000 phones and havent balked, so they have been conditioned.

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DoomsdayHell01

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Edited By DoomsdayHell01

@totallytc: They gonna loose money regardless of the version they put in the market, they all always do. They make their money back in software and first party games sales. It is gonna be $500 the same as Microsoft. Selling that thing at just $400 if is just one version will be a massive hit in their packet.

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ConsoleHaven

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@totallytc: That strategy usually doesn’t work 🤷🏻‍♂️

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totallytc

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Edited By totallytc

@consolehaven: please give examples when it hasnt worked? Price points are always a huge factor in moving product. Otherwise, hell, why has Xbox and Sony been selling their hardware at a loss so often all these years.

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ConsoleHaven

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@totallytc: oh sorry, I meant at launch. Having different specs at launch was bad for the PS3 if I recall. Microsoft also had different specs at launch for Xbox (more storage) and both companies eschewed that in favour of one spec at launch with PS4 and Xbox One. I think...

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totallytc

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@consolehaven: see whatever they do, they will both do it. In this type of console war you simply cant give the other the price advantage,

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ConsoleHaven

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@totallytc: I’m so fortunate not to have to choose.

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videogameninja

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Smart move on Sony’s behalf.

Playing the waiting game may actually play out in their favor. No doubt another repeat of the infamous 2013 E3 price unveiling would translate into a recreation of the events that have transpired currently in this gen.

Something tells me however that Microsoft has learned a lot from these last 7 years and isn’t willing on making the same mistake twice.

Will be extremely interesting to see how things play out in the next few months.

-WAIT & SEE NINJA APPROVED-

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ConsoleHaven

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Edited By ConsoleHaven

@videogameninja: well, MS has a superior spec by a nice margin. Phil Spencer has said that he won’t let price get in the way of power this gen. MS will release a less powerful console that will be spec for spec a PS5 with Xbox skin. That way, adverts showing games on MS hardware will look and play better (because of the existence of the series X) and will undoubtedly move more boxes this time around. Maybe I’m wrong, but that’s what I’m expecting.

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GamerBum

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Edited By GamerBum

@consolehaven:

That’s a pretty good evaluation and I tend to agree. Microsoft have everything covered this time round there’s know changing the narrative or shifting the goal posts by sony and the pony’s when they feel threatened which they just love to do.

The XseX is considerably more powerful than ps5 and it’s gonna show in the multiplat games a lot more this time round and 1st party games are gonna be bananas. Halo Infinite and Hellblade are gonna look bloody awesome and I can’t wait.

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Gamerforlife96

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Edited By Gamerforlife96

@gamerbum: yeah bc the powerful consoles xbox one x is selling like hotcakes

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Notafan

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In other words it will be more than $400.00 because they can't afford to take a serious hit on this thing in the first 3 or 4 years. I do believe Microsoft and Sony will as far as price wise be the same this time around at $500.00.

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Jako998

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Lol so Sony is pretty much waiting on Microsoft to reveal the price for Xbox series X first so they can price theirs lower. I don't think that will honestly matter if the leaks are true that Microsoft has 2 versions coming out this Holiday. Series X being around $500 while the Lockhart Veri will be around $300 to $400

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dmblum1799

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Edited By dmblum1799

I'm a Sony investor and a PS4 gamer. They will lose money on the console hardware sales initially; that's just the nature of the beast. They make their money on the back end with games and subscriptions.

They want to hit a sweet spot - a competitive price vs. Microsoft but not so low that its a prohibitive loss. I don't know how much it will cost to make and ship a PS5, but I would be surprised if the price is much over 500 dollars. Prices rise over time. When I was a kid, a candy bar cost ten cents.

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GamerBum

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Edited By GamerBum

Prediction

XseX = High end = $500

ps5 = mid range = $400

XseS = Low to mid range = $300

Like I said in my other post I believe Xbox will sell a lot more consoles this time round something comparable to the X360 sales. Probably more.

They still won’t beat playstation in sales though as ps has a much larger fanbase and always have and probably always will.

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Bignoli

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@gamerbum: Xbox still needs to come up wth some exclusives to achieve that.

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GamerBum

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@bignoli:

I believe Xboxs main exclusives are better than ps main exclusives. I have way more hours spent on Xboxs exclusives. Ps games I pretty much play once then leave them in their cases.

But it’s subjective.

Xbox seem to be on a mission. They are not fucking around this time.

XseX best most powerful console.

XseS great most affordable console.

Lots of great new studios/exclusives.

Best online network/services XBL/Gamepass

Best streaming platform Xcloud.

I mean c’mon sony have actually approached Microsoft for help. I suspect sony want to improve psn and ps now using Microsoft’s Azure datacenters. That’s gotta put a dent in a lot of pony pride out there lol.

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Thanatos2k

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@gamerbum: What Xbox exclusive?

(By the way, if I can play it on my PC it's not an Xbox exclusive)

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Gamerforlife96

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Edited By Gamerforlife96

@gamerbum: damn man you reek of fanboysim

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itchyflop

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@gamerbum: add £50-100 $ and your close

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pjosephson

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Edited By pjosephson

BS. These consoles are built around a price point not the other way around. Sure some things may not line up being a little more costly or may actually be somewhat cheaper by the time they line up the manufacturing contracts (like memory or chip yields). But, not drastically one way or the other. Sony either built the PS5 around $499 or $399. And Microsoft did the same with Xbox Series X.

Neither is taken a large hit on the build no matter what the other does. For every $10 to $11 loss these consoles incur is a single $60 game sale. A digital cut of $60 sale is $18 but then you take out taxes and operating expenses (people at all levels and support systems aren't free) you get around $11 of OI. The average early adopter buys around 3 games a year. With this gen having BC it could actually be less considering games like TLOUII and Tsushima have just been released prior to the launch. And only 37% of console owners buy PSPlus (that is pretty constant percentage for Sony this gen) and after expenses PS+ leads to around $18 to $20 of OI. So, after the initial payback of the launch loss (the cost of development to get the console to market) a $60 loss on the build could mean a whole two years before each console sold can start contributing to the profits. $100 loss could end up meaning a console take 3 years to start making contributions to the Sony's bottom line.

Even though Microsoft seems to be playing the long game to corral customers into services (GP/xCloud) they are not going to do any large loss on their console to get there in the short term. Sony is definitely not interested in a negative outlook in OI (remember Sony loss $5 billion on the PS3 because of BOM loss). The investors market would crucify them with such a goal of taking a loss for less return on a next-gen device. Because at the end of the day there is not going to be a made rush of new console buyers next-gen. The growth is not in the console itself but in services. And those services that will grow are things that cross outside on the physical console , like PSNow or Game Pass/xCloud related services.

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mcnichoj

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The key factor is the price of the next Xbox. Console sales hurt these companies during the first couple years but they make it all back and then some with the software. Sell more consoles, sell more software. So they need to sell more consoles than Microsoft so they don't lose people that will buy more software.

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Richardthe3rd

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"Totoki said, but fans and investors can be sure that Sony will "choose the optimal approach.""

Fans will pay whatever Sony wants.

The console will succeed if Sony decides to switch the word "optimal" with "reasonable," because like last gen both M$ and Sony will offer something comparable.

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LouiXIII

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@Richardthe3rd: So true

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