A new report by Bloomberg centred around first-year plans for the PS5 is currently doing the rounds, and has provided some interesting insight into Sony and Microsoft's next-gen preparations. The most notable titbit from an Xbox standpoint is that according to some analysts, Xbox Series X and PS5 could be sold at a loss.
The report mentions that, "according to people familiar with the matter," PlayStation is intending to limit its initial production run of the PS5, partly because of its ambitious specs weighing on demand and boosting its potential price. Allegedly, some game developers have suggested it could be sold at anywhere between $499 to $549.
However, certain analysts have also pointed out that the "close contest for attention" between Xbox Series X and PS5 could lead to both consoles being sold at a loss. Damian Thong at Macquarie Capital quoted $450 as a possible price point, despite both companies losing money at that figure.
Finally, the report also hints that PlayStation isn't expected to delay the release of the PS5 beyond the Holiday 2020 window, as long as Microsoft doesn't do the same with Xbox Series X. The challenges faced by the coronavirus pandemic are said to have not affected the PS5's production capacity, but have put a dent in Sony's promotional plans.
Do you think Xbox Series X will be released at $450 and take a loss? Give us your predictions in the comments.
[source bloomberg.com, via bloomberg.com]
Comments 16
Almost all new consoles are sold as loss leaders. I'm not sure why Bloomberg or any analysts are even remotely surprised.
I guess at the end of the day they are both expensive but for different reasons. I assume, PS5 because of its bespoke SSD and Xbox due to more expensive GPU setup. They probably both sell for 500$ anyway because no one wants to be the "more expensive console".
I can see the Series X being £50 more expensive than the PS5. But if it’s the same price then I think the PS5 will have a fight on its hand when it comes to sales with the Series X being the more powerful console.
Pretty sure both will be $499, if one or the other is more expensive than it will have a much harder time beating its competition.
I am sure that none of them wants to be the "more expensive than" but the question is who will reveal price first and would they update price if the other beat it? I think that Sony is having more insecurity about the next-gen consoles because of the way they're handling information about PS5, with specifications revealed after Microsoft and only the controller being shown and shown on the PlayStation blog. The report also says that Sony will push PS4 sales to increase subscriptions. Ironically, they're relying on PS4 but not improving backwards/forwards compatibility.
@BlueOcean Even if it turns out that, for example Series X is 599 and PS5 is 499 there is still way to handle this indirectly, for example a bundle with 3 Month of Gamepass / Halo: Infinite + extra controller for 599.
@BlueOcean The fact that they have just shown the controller thus far mirrors exactly how the PS4 rollout was. Don't think that's an indication of insecurity really
I expect both to be in the $500 range. If either can swing sub 500 i'd be shocked. Though fully expect both to be hard to find at launch and well into 2021
I think they will be relatively close in price - unless someone wants to take a big hit at launch. I know consoles are not the money maker - barely breaking, even if at all, - but whilst MS appears to have put more money into the APU, Sony appears to have put more money into SSD and DS5 so the price could be pretty even...
They will both be the same price & probably $499. And if that is the case, then it’s a win for Microsoft as the Xbox Series X is way more powerful than the PS5.
"PlayStation is intending to limit its initial production run of the PS5, partly because of its ambitious specs..."
😂
hasn't every console been sold at a loss during launch?
I know that they seem to be promoting the new Xbox as an optional upgrade at this point and that may be the case if you have a One X but all I think about is the struggle my S has playing Control and to a lesser extent A Plague Tale Innocence. Those games have been demanding on my console.
@BrilliantBill
Both will probably be the same price. History has shown the more expensive console usually faces an uphill battle. But if one is more expensive that is a great way to offset the extra cost by bundling games and subscriptions.
@Jacoby @BrilliantBill I have to admit that I would have said that that wouldn't work even if it was better value but after thinking a bit more if Series X is a little more expensive (50 maximum) but includes one year of Game Pass Ultimate that could work perfectly fine. One year of Game Pass is too good to ignore.
It's funny how important a console price is when most of the money is spent on games and/or subscriptions. On Xbox, games and subscriptions are cheaper and better respectively so I am happy paying more for better hardware and getting better software deals.
@ThePrettySenshi Not Nintendo's consoles.
@KelticDevil
"They will both be the same price & probably $499. And if that is the case, then it’s a win for Microsoft as the Xbox Series X is way more powerful than the PS5."
And the PS3 was "more powerful" than the 360 at launch. How did that launch period work out for the "more powerful" machine?
@NorrinRadd
Not even close to the same thing. The PS3’s cell processor was a notorious pain to developers. So it’s power advantage was relegated to being worthless, except with first party titles.
The XSX will not have that problem. So my point still stands.
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