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PS4 initial costing analysis

NEOgaf users have done a costing analysis of the Playstation 4:
APU (CPU/GPU) – 85-90
8GB GDDR5 – 110-140
OS Chip (supposedly ARM based) – 12-18
Video encode/decode chip – 8-12
Blu-ray drive – 18-25
Hard drive – 38-50
I/O – 9-12
Wireless chip + antenna – 4
HDMI+HDCP – 11-15
Other – 25-35

Total: 320-401

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aquamala1251d ago

pretty much what I thought based on the components, Sony should be able to sell this at $399 and not at a loss.

wishingW3L1251d ago (Edited 1251d ago )

but it's $400 without counting these:

Accessories:

DS4 – 18-30
PS4 Eye -$12-20
Mono headset – 3
Cabling/misc – 3

Unknown/Alpha:

Internal PSU – 25-55
Cooling – 20-38
Assembly – 13 (Based on being made in China, for made in Japan, make that ~ $45)
Total estimated system cost (no shipping and packaging) – $450-490

So the PS4's looking like it's gonna be on the expensive side even more so than the PS3 was on release date and that's scary.

But the thing is that they could cut so many pointless stuff to make it affordable like: the Ram (maybe to 6GB?), PS Eye (nobody's gonna even use it anyway), OS chip (pointless) and video encoding chip (pointless since the GPU could do this by itself... So many pointless stuff yet they can't make a version with a Cell chip for PS3 BC on the PS4!

Muffins12231251d ago

you forgot that most consoles are sold at a bargain price so suspect them for the first year to sale it at a loss...(399)

Cupid_Viper_31250d ago (Edited 1250d ago )

All this focus on "How much it cost Sony" for the PS4 seems a little off base though. As the PS3 have demonstrated that the PlayStation brand can sell a more a expensive console at a faster rate (in less time) than the XBox brand.

So it's not really so much the cost that's a factor for Sony as they'll absord the initial loss, it's more about the "Timing". Meaning that regardless if the next xbox is slightly cheaper than the PS4, releasing at the same time is an advantage to Sony.

We already know that the PS3 has overtake the Xbox 360 in worldwide number. http://gamer.blorge.com/201...

But If you count sales from when both the PS3 and Xbox 360 were out, the PS3 outsold its competitor by almost 12 million units while remaining the most expensive console.

Caffo011250d ago

Don't even think to lower the RAM to 6 gb <.<

user39158001250d ago

Ugh the most important gadget add remote and hdmi cable, packaging, shipment cost, and advertising. At least 599, but sony most likely settle for 499.

MasterCornholio1250d ago

Theres other things that are not factored into the equation like the discounts that Sony receives from buying the parts whole sale for example and the costs for research and development.

The only ones who really know are Sony and at the moment the PS4s price is top secret.

Dude4201250d ago

1. They forgot the Motherboard.

2. For the amount of power needed to run KZ:SF, I really don't think the APU will only cost $90, even the most expensive APU is considered low-end for gaming.

zebramocha1250d ago

@dude from what I've read,it's not the chip it self that determines cost but the size.

SDF Repellent1250d ago

Man, I sure hope this is around $400 and not any higher because adding in an extra controller is $50, probably 4 games at launch which is another $240, that is $700 in total cost. Still too high for any consoles IMO. Might have to wait out a bit until both the new consoles are cheaper and just playing backlogs of current gen games until the price drop.

Dude4201250d ago (Edited 1250d ago )

@ zebra

Maybe, but if desktop CPUs are anything to go by, more power = more cost. In this case, the CPU part of the chip probably isn't the most powerful.

However, we haven't considered the GPU part either, which could be equivalent to an HD7850 (don't quote me on this, I don't know how powerful it is). With the amount of power for the GPU part, I really don't think this APU will come cheap.

Saigon1250d ago

They also did not include the 20% that Sony takes a hit on. If you apply the 20% to the 450 it would cost 360 and 408 for the 490.

Either way, I think they went a little cheep on some of the accessories, such as the new PSeye, that monster of an item would cost 12-20$...gtfoh...

EbeneezerGoode1250d ago

Christ man, you want them to turn it back into a PS3!! haha

It's fine as it is with the spec it has and for whatever price it costs. If you don't like it don't buy it.

I'd rather have a costlier system that actually does what I want than a cheaper nerfed system (ie Wii-U)

slaton241250d ago

ps3 was 600 on release day thats why i waited 2 years and got one at 400

Nachoman321250d ago

Actually the first PS3 cost almost 1000$ to produce... and was sold for 600. Console makers will sell a console for a loss because they expect to make up on game and accessorie sales. Mark my words, there is no way that sony is selling this thing over 400$ I expect the sweet spot to be 350 to compete with WiiU.

HappyGaming1250d ago

OS costs? Gaikai? Destiny exclusive DLC? Marketing? R&D?

In business we don't just count the parts of the product. You can't just ignore fixed costs.

However it is likely that they will sell at a loss for the first year or so just to increase the user base and better their chances of getting a return from videogame sales in the long run.

Legion1249d ago

@Cupid_Viper_3

All it proved was PS3 has Japan support where MS doesn't.

When it comes down to it. Sony lost the core fanbase in the Americas and was able to sustain sales due to their strength in their home market where majority of consumers hate anything not Made in Japan.

SnakeforPresident1249d ago

More expensive than the ps3? You obviously arent aware of the cost of the cell processor and blueray player at time of launch(at the time blueray players alone costed over $300 dollars), not to mention R&D cost of the proprietary architecture due to the CELL. And you still think its feasible to just put a CELL processor in the same box? My friend, research, do some.

DarkHeroZX1249d ago

PS3 was over $800 for the console alone lol.

Autodidactdystopia1249d ago

it will launch at the price they think is fair.

i wonder if guessing has ever really gotten anyone anywhere.

i do say though, that when the ps3 came out it was 80% equivalent to the fastest machines out at the time.

It seems they are taking a budget route this time as this seems to be about 90% equivalent to most midrange systems of today.

but it will push much nicer titles than the hardware suggests just due to the fact that these systems can be optimized to no tomorrow!

+ Show (15) more repliesLast reply 1249d ago
RememberThe3571250d ago

We'll see, these numbers are not gospel. But I'm betting on $399 as well and a price drop for the PS3 at E3.

xursz1250d ago

Place my bet on: 450 USD. 350 euro. 400,000 yen.

brave27heart1250d ago

£349 base model 60gb hard drive and £399 with 120gb hard drive.

Please no more than that. I want a second controller and a game with change from £500.

yeahokchief1250d ago (Edited 1250d ago )

$500 is the sweet spot.

As long as I can get the system with a game for $500 i'm happy with the price and I will explain why. For anyone making at least 40k per year i think that that should be a under 1 week's salary after taxes.

According to wikipedia, mean income per household is 45k per year in 2012. (Yeah i know a lot of low skill people arent making this much and it depends also on where you live, but that is the average looking at the statistics.)

A key to good investments is stopping and asking yourself "how much?" before buying something. I think 1 week's worth of work is a reasonable cost to purchase a gaming console.

So if you keep the PS4 within 1 week's salary it becomes more realistic for the average consumer to purchase at launch. If I was only making 40k, I could see myself giving up 1 week's salary. I could live with that.

I just hope they make it accessible. That was the problem with the PS3. It was too expensive for gamers. If i put money down on this thing then I want my friends to be able to get one too. I'm hoping the price point with this console is more inclusive so more people can enjoy it.

THE REAL EXPENSES WILL COME LATER.

-THey are going to have a subscription model with different tiers: Gold, Platinum and Silver

-Extended warranty (i usually like buying one of these on brand new consoles for another 50 bucks which may have design flaws or less efficient cooling etc. who knows.

-2nd controller will probably be a bit more expensive with the touchpad etc

ON THE PLUS SIDE:

-hopefully there will be more indie games where you can pay 99c or $5 for a game unlike current $10 and $15 psn games and $6 ps1 games. the subscription model will likely play a factor in this.

Personally I haven't decided whether or not i'm buying a PS4. I own PS1,2,3, but I just feel that it is coming out too soon. I'd have been happier with a 2014 release after I've spent god knows how many hours on GTA V. But if it's within $500 then i'll preorder and pick one up on launch without question because that's easily affordable and I wouldn't feel like I was burning money. It would feel like a good investment.

Marquis_de_Sade1250d ago

Braveheart, 60/120gb machines? I don't think so, with 1080p content and games that would be eaten up as fast as your bandwidth would allow

_-EDMIX-_1250d ago

I hope. Either way, with a PS4, I'll pay $499 for one! (would be nice to get it for $399 though LOL)

danthebios1249d ago

I dont think a next gen console $399usd,my guess is same with xurs which is 450usd.

+ Show (3) more repliesLast reply 1249d ago
guitarse1250d ago

Plus shipping, TAX, VAT, or any number of fees implied by different countries can drive up the cost of getting the units to retail. Keep in mind that the retailer buys these of Sony and then also need to make a markup them selves (not always possible).

Every little detail such as an increase in fuel prices, a poor exchange rate that week/month to and from the company that makes the hardware to the people that pay for it, the list is endless.

Add to that the cost of marketing the device, training retail staff, customer support and of course a manufacturers warranty taking up a percentage for operating loss.

Best not forget quality control also as no doubt a few units wont make it past that.

Sony will have to sell at a loss, this much is an absolute fact. The real news is "how low dare they go" to stick a thorn into Microsoft, without cutting themselves too deep.

vulcanproject1250d ago (Edited 1250d ago )

Yup. If it costs Sony $450+ just to build each one then add in package and shipping then tax..... if they sell it at $499/£350 they will still take a loss on each one. UK = 20 percent VAT before it gets near a retail shelf.

They can't afford to take a huge loss on hardware for years and years. This just isn't 2006 anymore.

I actually expected something like $499 for the base version and more for the top dog with bigger HDD etc.

ABizzel11250d ago

The APU is going to be much more than $90. The GPU is too powerful for it to be anything under $100.

Something more along the lines of $150.

guitarse1250d ago

When you buy in bulk you get a fucking huge discount, AMD aren't having to market this chip, promote it, they just make it and give it to Sony and because its not going to change over the years (in general anyway) then they can keep reducing costs, so its likely a LOT less than most people thing.

This is true of many of the parts, but EVERY company that supplies so much as a fucking screw for anything still needs to turn a profit somewhere.

showtimefolks1249d ago

but those prices are not if you are buying millions of them at the same time, if sony wants 20 million of each than how much of a discount would each item get?

i think there will be 2 SKU's $399 and $449

but we expected the same with Vita and were surprised when it was $249 instead of what many thought would be $349-399

i say sony may shock us by doing $299 and $349 and dropping ps3 to $149

DivineAssault 1249d ago

lol your kidding right? Theres no way in hell theyre going to sell this thing without taking a hit on costs.. Even the wii u is sold at a loss lol.. This thing is FAR more advanced than the wii u..

The PS4 may cost around $450 for a basic model & thats taking a hit.. A premium may be $100 more & that will be an even bigger hit.. The system is no joke bro.. Not the most powerful rig the world has seen but its very strong & more than likely the strongest nx gen console that will be out..

Wii u has 3 cores & 2GB of DDR3 RAM.. It costs $300 & nintendo is taking a hit of around $50/console.. Now the gamepad is one of the most expensive things about it but still.. PS4 has 8GB of GDDR5 RAM & 8 cores with all that functionality.. Do the math bro

N4g_null1249d ago

Really no power supply and wow look at those prices, pretty unrealistic but hey if they can do it then great!

+ Show (5) more repliesLast reply 1249d ago
callahan091251d ago

85 dollars for the APU seems very cheap to me... could it really be that low? Actually, yeah I guess so, considering that a similar GPU in a PC graphics card would be in the 200 range, but that includes RAM in that pricing, whereas here we have the RAM itemized separately.

mochachino1250d ago

One thing MS could counter with is a superior GPU.

Should be interesting to see the other shoe drop.

bicfitness1250d ago (Edited 1250d ago )

They are both using SoC, so no. That, just like swapping the RAM would cause them to make a whole new mobo, which leads to production delays etc. The 360 design was finalized for a year before it went into production, they just changed the DIMMs around, that didn't change the mobo. MS will go with what was leaked, guaranteed. Its not like a WiiU > PS4 difference we're talking about here, and certainly nothing that will be noticed outside of Head2Head comparisons or until later in the generation (or PS4 exclusives).

They need to keep the price down as living room penetration is what they're after. They won't compete on specs or launch windows, so they will compete on cost.

dcbronco1250d ago

Sony has stated their specs aren't final and they have stated they will release this Holiday. The days of setting the specs a year early are gone. Both can still change some things.

Qrphe1250d ago (Edited 1250d ago )

Sony doesn't pay retail prices. The RSX was based off of the 7800 GTX and cost $600 at release yet it cost Sony $130 to put in each PS3. Similar case for Microsoft in 2005.

@mochaochino

Unless Microsoft was able to keep a new GPU from leaking all these months, don't expect anymore changes.

And I agree, BC is just a waste of money on next-gen consoles.

vulcanproject1250d ago (Edited 1250d ago )

These aren't retail prices they are already calculated at bulk OEM prices. I.e the ones Sony would be expected to pay.

LessThan2Tflops1250d ago

Pretty much so, nothing high end about the apu

solar1250d ago

Well the cpu is based off of low end notebook cpu so it could be that cheap

http://www.engadget.com/201...

+ Show (1) more replyLast reply 1250d ago
Capodastaro1251d ago (Edited 1251d ago )

numbers-pulled-out-the-ass.com

Anyone can have a guess, but what are they referring too? When they say HDMI are they factoring in voltage regulators, HDMI controller, PLL clock multiplier, EEPROM, crystal reference for time base for EEPROM... It goes on and on and on, not to mention the shielding and AA filtering.

mochachino1250d ago (Edited 1250d ago )

I know I'll get a bunch of disagrees for saying this but I'm very happy Sony ditched BC and spent the money on better NEXT-GEN functionality and performance.

Keep you PS3s for the odd time you feel like playing last gen games.

PS4isKing_821250d ago

I agree with that fully. With Sony cutting bc and and not custom making the parts like they did with cell and opening up factories to manufacture them, they have cut alot of expenses which should equate to a fairly affordable console at launch. My guess is in the neighborhood of $399 to $450.

irepbtown1250d ago

Totally agree with both of you. However it would be nice to create a PS4 (possibly high end model) with BC. They could also charge more for this to cover the expenses. Have it as a add on feature maybe? Just throwing out ideas...

$400 = £264, lovely price for the consumer. Though here in the UK at least, I think it will hit £300 = $453 considering our ridiculous tax rates and many things genuinely being more expensive than the States. £300 is still a pretty good price considering I payed around £500 = $756 for my PS3 (included couple of games, 3yr guarantee, extra controller). Though I did get 12 months to pay it with 0% interest (Argos).

So, £300/$450 seems like a good price. Anything under = a Bargain.

Persistantthug1250d ago

PS1 backwards compatibility.
Possibly PS2 B/C as well.

Aceman181250d ago (Edited 1250d ago )

That's what i planned on doing that minute i heard the announcement of the PS4. i have no problems having both systems in my entertainment unit, all i have to do is hit the source button on my cable remote to play either one.

Timmey1250d ago

i think Persistantthug is right. i read that you need 10 times the power of the initial system to emulate it. with the specs of the ps4 i think that is possible for the ps2 as well. they could release an emulator beta so they can blame all the errors and bugs while emulating on the beta status...and save a lot of money

KwietStorm1250d ago

I don't disagree at all. Putting a PS3 SoC on the PS4 board would be overkill. If leaving it out helps keep the price down so more people adopt it quicker, I'm all for it. Thunk of this too. If they use Gaikai similar to Netflix, and they allow streaming of old games for a subscription, in packages or whatever the case may be, you could actually end up having access to more games than you had in the first place. Streaming may be a problem for some, but again, if it keeps the price down, I think its the better trade off. You wouldn't feel so pressured to trade in that PS3 if PS4 is a good price as well.

Cryptcuzz1250d ago

I agree with this wholeheartedly.

The cost and headaches of having BC on the PS4 would not be beneficial to most consumers.

Those who wants to play PS3 games on the PS4 will most likely have a PS3 already.

Adding the cost and spending resources in getting it to run properly on the PS4 would not be ideal, considering small percentage of consumers would be using that feature.

When I got the PS3 at launch, the last thing I wanted to play was PS2 games on it. Don't get me wrong, I loved the PS2 and its games, but going from PS3 level game play and graphics and then going back to PS2 games kept my attention to a minimal with that feature.

I am more then happy to still keep my PS3 around when I want to play PS3 games. I am also more then happy that Gaikai will offer BC through streaming as well.

It is the perfect compromise.

+ Show (3) more repliesLast reply 1250d ago
Ps_alm3k1250d ago

My guess is 400- 500 dollars. From basic to premium model.

KwietStorm1250d ago

What do you think the differences will be?

Ps_alm3k1250d ago

probably Gigs on hard drive and a game bundle. I know for sure they will be pushing digital. so yea idk.