Sony ramping up pre-launch PS5 production output by 50%

No, I'm educating him about his description of the stimulus check being by his president when it was enacted by congress.

Also, you're against socialist programs, did you give back your check like a hungry republican that you're?

Sony could kill 2 birds with one stone by selling the PS5 digital edition at $299.

that would be the end of Xbox and physical discs

So just eat a $250-300 loss per console and they win?

“Sony, the world's No. 2 video game console maker after Nintendo”

We are just gonna gloss over this one, huh Cows?

I guess it makes sense for them to lose at least a billion dollars in their first PS5 quarter. 🙄

@bluestars:

Then dont pass your shitty opinion as kind of Ruth.

When you are a blind fanboy there is little sony can do to convince you to get one.

@Sevenizz:

Well that does it Sony is doom.

DOOOOOOMMMM.

The PS5 has a boost clock design.

PlayStation 5’s Boost Clock Design Opens Up a Lot of Opportunities, Says Developer

https://wccftech.com/playstation-5-boost-clock-design-opens-up-a-lot-of-opportunities-says-dev/

COM isn't that much for the PS5 from what I hear. If they cost under 500 to make, they a could shave a large off of it and be okay. I doubt they'd want to take a similar loss like the initial PS3s though.

I guess that explains why I saw his signature on the check. I thought he agrees with the idea and I assume he did it to boost his chances of winning the election for that lol.

@tormentos:

HaH

Emotional

Bless

True.

But, let's get to the basics. For the 71st time, where are the sources for GDDR is better than DDR for CPUs, fraud? 3.5 months and counting.

Take it elsewhere, this isn't the board for that.

----------------------------

Sure, in fantasy land that could happen.

At best the Digital PS5 is 50$ cheaper than the regular version.

10M in the 1st year makes sense and is easily doable but 9M at launch is a pipe dream. Will never happen and I highly doubt 9M in 3 months is going to happen either. I think people seem to have forgotten we're still in the middle of a WW pandemic and production isn't going to be at 100%.

I know and that boost has a limit.

these ps5 are not hand made lol. once the machines are locked in bam only a few people has to watch the machines that are building them. no there is not going to be 9 million at launch maybe 4 million but they are saying the first quarter of 2021 they will have 10 mil.

no because they will cut it by 50 because the price of the blu-ray but they can go lower than that because they make it up from digital sales. sony makes more of a profit when its on there store because it excludes the stores profit like walmart or gamestop giving more of a profit to sony.

The speculated BoM (bill of materials) is set around 470$ for the PS5.

A Bluray drive likely doesn't cost them 50$, but let's assume it does. That would leave the Digital PS5 at ~420$.

At best, they would take a hit to make it 399$ as the final retail price. The more logic move would be, however, to make it 450$ and make a small profit on it.

Anything below 399$ is a bit of a fantasy tbh.

but if you look at history they always take a huge hit. look at ps3 it cost them 840 to build that machine and sold it at 600. that is a 240 dollar loss. ps2 480 and launch with the 299 price tag. the ps4 was the first console to make a profit at launch at 18 dollars cost 381 to make and launched at 399. the ps5 cost 450 or 470 so i can see a 299 digital and 399 price dags for both. they can eat more money so they can get that money back in software because how much faster they would move these console at those price points.

even the ps3 slim 336 to make and sold it at 299. even that far in there eating money.

@gifford38: Name 1 console that was handmade. Name 1 console that launched with more than a few M if even that. You seem to forget it still takes people to assemble these machines. It is also heavily reliant on parts being in stock.

You seem to live in a fantasy world where everything Sony says is Gospel. Sony has made the claim several time about launch consoles being available. Not once have they even come close to getting anywhere near that many at launch. That isn't going to change with the PS5

That's the thing. They changed their strategy with the PS4 and it ended up making them more money than they ever dreamed of.

I have serious doubts they'll go back into selling the hardware at any type of loss now.

i said it's not handmade so no console was handmade. the ps4 sold 1 million in one day when it launched. thats the first day now imagine in one week. no sony been saying there will be shortages of the ps5 at launch. now there finally saying there back on full track. they sold 2.1 million from November 15 to dec 1 when they launched. 2.1 million in what 15 days.

why not they had to make up from the huge loss from the ps3. so they got that this gen. i can bet that the ps5 will launch at 399. there trying to get 10 million ps5 by march 31 of 2021 because of the huge demand. you think there going to move that many consoles with a 499 price tag or more?

there also paying attention to xbox price as well. you think there going to give them the edge with a more powerful system? they know phil said he is aloud to cut there price by 100 to compete with sony. so if they give it the 399 and 299 price it would force xbox to follow suit. no way they can sell the series x at 299 that be insane. but if sont priced it at 499 they can give the series x a 399 price tag.

also they are saying 10 million by march 31 of 2021 not at launch.

@gifford38: Yeah 1M in a day not 9M like what's trying to be said here. You understand what I'm saying? There is no way they're going to sell 9M on launch. Maybe a few months, doubt it but we'll see.

@gifford38: Ok makes more sense then. Doable for sure provided they don't have a parts shortage which is known to happen when launching a new console.

@tormentos: Once again PS_John take the bet. Just being a coward as usual? Afraid you'll have to give up your account?

So is this an increase over usual production, or where the original production orders lower due to COVID shutdowns?

A little bit of both (more the latter though). PS4 sold some 7M units in the first few months, so reaching 10M is an increase in production on that (remains to be seen if they can sell them of course).

There cannot possibly be people redacted enough to think the PS5 is going to launch at $299.

Sony would have to incur a $150 loss, (meaning,$1.5 billion dollar loss on its initial shipment of 10 million) despite not only NOT having as many means to do this as MS, they also have no impetus to do this because they are already the market leader. The consoles are already selling like crazy (as cows are quick to remind us) and they have the super-duper social media engagement numbers, breaking records on instagram engagements with a logo (and other such nonsense) etc.

Typically, when you're the market leader, you dont then engage in some crazy loss-leader strategy. That is typically when you increase your margins. You only do a loss leader strategy to increase marketshare/mindshare, and drive brand engagement. You dont do that when you are at the height of your momentum and already awash in those things. Not to mention, a business model that depends on hardware profits more than Microsofts. To put this in perspective, Sony earned $5.34 billion in operating profits for the fiscal year ending march 2020. Remember, this would cost Sony $1.5 billion on its first 10 million units. And Playstation is one of the only profitable divisions at Sony.

In effect, Cows expect Sony to burn billions of dollars they cannot afford to forfeit, in a game of price chicken they not only will absolutely lose (Phil has been given a mandate from Satya to match them), but dont even need to do, for no reason other than system wars, despite having no impetus to do so.

Cows, if you are floating this as a remote possibility, please dont ever give accounting advice to the second wealthiest company on the face of the earth again.