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Why PlayStation 5 can’t be $499 even though Xbox One X is

Even though Xbox One X is $499 and has been relatively successful, Eggplante gives a few reasons why Sony can't replicate this, and it all comes down to the generational divide and consumer choice.

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Abash8d ago

This article is way misinformed. The PS5 will most likely be $499 and will be very successful at that price.

ifinitygamer8d ago (Edited 8d ago )

Based on what? A respected Japanese analyst is expecting the PS5 to sell 6m units in its first year, less than half of the PS4's first year. 6m is nothing to scoff at, but it's not the numbers that Sony posted last time. Even Xbox One sold 10m units within its first year. 6m would not be considered a success in comparison by any stretch.

Edit: the analyst is also referenced in the article, but you would know that if you read the article, wouldn't you?

SolidGamerX8d ago

You know analyst are making predictions and aren't always right.

ifinitygamer8d ago

SolidGamerX: absolutely, they're often incorrect, but they've got more market analysis insight and at least a good a chance, if not better, as anyone else to make a prediction, so Abash making their own prediction is a bit backwards if their logic is that the analyst doesn't get it right.

Razzer8d ago

Maybe you should do some more research. Yasuda said PS5 would sell 6 million in its first FISCAL year. That is between November 2020 and March 2021. That's the first 4-5 months. Not the "first year".

"While it’s difficult to predict sales with the elements we have now, Yasuda-san expects a launch in November 2020. Assuming a price point of 40,980 yen and $499 in the west, he thinks that it’ll sell 6 million units in its first fiscal year (by March 31, 2021), followed by 15 million units in the year after (by March 31, 2022)."
https://twinfinite.net/2019...

"journalism"

ABizzel18d ago

I could have sworn that article said 6 million in its first fiscal year, which they expected to be a Fall launch September / November 2020 - March 31st 2021.

Which is believable.

tree_fiddy8d ago

That's ridiculous to state. PS5 will likely break records for the backwards compatibility alone. It will be sold out everywhere for at least a few months.

Hell even I, who swore to never buy a new console at release, am thinking about it.

Rude-ro8d ago

Microsoft releases a mid gen console..
That only puts more pixels on the base under powdered Xbox one..
Dynamic 4K and no improvement on frames over its counter part on most releases...
Gets praised by the gaming “media” for $499
All while Microsoft has not made a new AAA game in 8 years...

Over a year away from the ps5 and the price is an issue.
Cool story brah

ifinitygamer8d ago (Edited 8d ago )

Razzer, the translation of the report from Yasuda says: "It is assumed that sales of 6 million units in the first year and 15 million units in the next year are assumed."
Nothing in there says anything about it being a fiscal year, so perhaps it is up for interpretation, but we're going based on the documentation itself. Everywhere else Yasuda mentions fiscal years with the words "fiscal year" in the document, why wouldn't he add that first fiscal year and second fiscal year in that statement if he did it everywhere else? Seems like he's talking about the calendar year based on that.
https://translate.google.co...

Razzer8d ago (Edited 8d ago )

@ifinitygamer

The article I linked to was written by Giuseppe Nelva. He is fluent in Japanese.

Another source:

"Typically, one can assume that the prices are converted 1 to 1 in euros, making the PlayStation 5in Germany, taking into account Yasuda's assumptions with 499 euros could book. Furthermore, the analyst assumes that Sony will sell six million PS5 consoles in the first fiscal year of the next generation, ie until the end of March 2021. The following year, another 15 million copies could be sold. "
https://winfuture.de/news,1...

Ceaser98573618d ago

No analyst I believe expected the PS4 to do well... Most analyst said PS5 will come this year.. They are wrong each time...

PS4 at 399 was okay because it was not that powerful compared to the year and time it released. The PS5 will be a beast and 499 will be great.. And with PS4 BC games on the PS5. I can see it selling really well... Day 1 buy here...

nucky647d ago

predictions are just guesses. and it sounds like you're wanting to treat a guess as fact -which it's not.
my feeling is the only way ps5 sells 6m units the first year is if that's all sony can get out the door. we'll find out when it launches.

SamPao7d ago

21 in the first year, read it again.

Eulderink7d ago (Edited 7d ago )

... you need better reading skills...
like the title gives away why can the xbox one x be 500 dollars and the ps5 can't....
they arguments are purely suggestive with nothing to back that for instance they talk about microsoft going beyond generations so people don't feel pressure about upgrading to the new console... lmao man people flip out when something new and better comes their way. everyone wants the best console if they can afford it.

they also say: "No one is forcing the gamer into a new generation; they upgrade as money and desire allows, while their existing games and hardware all continues to work on the new console, so consumers are a lot more receptive to a $499 price tag".

erm ps5 prolly has that too: https://www.tweaktown.com/n...

you literally took the part of the article that said: this is what happens when the ps5 sells at 500, instead of looking at the arguments made for the xbox succeeding at a 500 dollar range and why the ps5 cant ;)

btw an article about how succesfull xbox one x is even so late in this gen:
https://www.trustedreviews....
https://segmentnext.com/201...

so yea 500 dollar price point doesn't matter shit, and a good example is phones. Every year mostly small upgrades and you pay like 1000 dollar and people eat it like hotcakes.

it may go slower than i thought though since we cant tell exactly how much the xbox one x sold i can't make predictions about it. maybe i should have written this article since i can spew the same bullshit xD

edit: well just saw on main site it's an opinion piece so i should expect suggestive stuff ^^ mb.

fr0sty7d ago

They could easily launch a pro model alongside it that is $499, but have a base model that sells at the common $399.

rainslacker7d ago

Unless he has more details about the hardware specs, I don't see how they can predict a price. Or how anyone can. Predictions can be made based on likely scenarios, but while Sony did give some details, they left a lot of details out. And no one, outside Sony and AMD really know what their collaborative effort to develop the chip to be used, would affect the sourcing, or what chips that Sony will manufacture to reduce the sourcing costs.

There were a lot of analysts last gen who made all sorts of predictions. They were all wrong. Remember how MS was going to rock it? Sony was going to fail. Consoles would die a slow, yet painful death. How an all digital future was slated for this gen.

KillBill7d ago

From what I recall the 6 million units was projected out to March 2021 and not for a complete year. Not sure where inverse got the "in a year" quote? PS5 was to be released in Nov 2020 and see 6 million units by March 2021.

S2Killinit7d ago

I think youre underestimating Playstation’s brand.

+ Show (13) more repliesLast reply 7d ago
Agent_00_Revan8d ago

$499 is a great price point. It may be a little high for some, but that extra $100 vs the PS4 is going to allow for better specs and ensure a better overall console.

gam3r_4_lif38d ago

Yeah I would rather both the PS5 and next xbox be a little more expensive but be an actual decent leap over current gen.

PS4 and X1 were no where near tge improvement we seen from OG X and PS2 to 360 and PS3.

When 360 and PS3 launched they gave PC's a run for their money

ButtAnihilator8d ago

Better specs should be a given, they shouldn't need the extra $100 price. The ps2 was massively more powerful than the ps1 and it was CHEAPER at release.

bluebenjamin8d ago (Edited 8d ago )

Been saying this since lauch but nobody was hearing me then just down voted it and believed they had a real upgrade from 360 and ps3 Lmao 😂

sampsonon8d ago

It's too expensive for me so i will wait until it drops in price.
Most people in Canada will wait. $760 with tax here.
too bad if it's true.

JackBNimble7d ago

Sampsonon
I paid close to that with the ps3 ... I ain't waiting on a price drop.

rainslacker7d ago

I'd rather pay an extra hundred early on, than them to skimp out on hardware to get a more agreeable price point. Particularly if MS isn't going to try and lowball it, which they said they wouldn't ever do again. Of course, MS isn't consistent in delivering on their promises, so maybe they won't worry so much about the power thing.

+ Show (3) more repliesLast reply 7d ago
sampsonon8d ago

I'm not buying it here in Canada. $760 with tax.

chiefJohn1177d ago

Why not buy it in the USA and have it shipped to you?

porkChop7d ago

@chief

Because with the exchange rate the price would still be extremely high even without the 13% tax. And if we order online from USA we still pay other fees. It's just too expensive.

nucky647d ago

with some of the news about what will be inside ps5, i'd be very happy it's no more than 499.

Master of Unlocking7d ago

Yeah. The way I figure, if anything consumers will be more keen on spending 500$ on a system as poweful as the PS5 is allegedly going to be than on what will soon appear to be a last-gen system, as powerful as it may have been when it came out...

I mean, those 6 TFLOPS the Xbox One X could brag about for 3 years are soon going to appear to be a limitation compared to the alleged 12,9 TFLOPS the PS5 is supposed to have.

bluebenjamin7d ago

Oh wow 😮 u must be ecstatic! Playstation is gonna have the most powerful system for a few months lol 😆

DJStotty7d ago

And Microsoft have gone on record to say they will not fall victim to the power shortfall again.

As bluebenjamin said

shaggy23037d ago

@Master of Unlocking

you do realise that Microsoft is also releasing a new console ye?

So even if Sony releases first, the title of "worlds most powerful console" should only be Sony's for a short time, not that it matters anyway, as we all know games are all that matters................right?

Sophisticated_Chap7d ago (Edited 7d ago )

If next gen is to be a full on 4K generation, then I have trouble believing that the PS5 or the Xbox Two will cost only $499.00 USD. I'm predicting at least $599.00 USD, with the cheaper entry level options being the PS4 PRO and the Xbox One X, since they are capable of 4K, but on the lowest comparable PC settings.

The only graphics cards on the market that can do 4K properly, without majorly sacrificing graphics quality and Frames Per Second, are the RTX 2080, RTX 2080TI and the AMD Radeon VII. The starting price for the RTX 2080 and the Radeon VII is $699.00 USD, while the RTX 2080TI starts at $999.00 USD.

You can do 4K with an RTX 2060 ($349.00 USD) and RTX 2070 ($499.00 USD), but you are really having to turn down the graphics settings and even at that point, you are ending up with sub 30fps in many cases, depending on the game. If the PS5 and Xbox Two can't do 4k 60fps on at least medium PC settings for most games, than there's not much point in upgrading to next gen consoles.

DarXyde7d ago

I suppose it depends on how you define "successful". A few things worth taking note of...

Price is, and always has been, a deciding factor in lifetime sales. The analyst they cited expecting less than half the sales of PS5 in a year compared to PS4 is reasonable.

You might be thinking, "it'll be cheap for what it comes with" but even if that is true, if your budget is $450 and Sony manages to stuff an $8,000 PC into a $550 chassis, it doesn't matter. $500 is still more than some will spend on hardware. It's why sales increase after price drops - because now it fits into the budget of what people are willing to spend.

Another consideration is the size of this thing. Sony is not skimping on PS5's power. You have to expect that it'll be a good size in an attempt to keep it cool.... and because of that, you should probably expect it to hurt Japanese sales. I've been to Japan a few times and I cannot emphasize enough that size really matters. If it doesn't fit into the already- lean entertainment sets people have there, you have an honest-to-goodness problem in popularizing it in the land of the rising sun.

porkChop7d ago

"$500 is still more than some will spend on hardware. It's why sales increase after price drops - because now it fits into the budget of what people are willing to spend."

Exactly. I'm surprised so many people don't understand this. Value for money doesn't matter if the cost is higher than what most people can afford.

A Tesla is great value for money when you consider how much you save over time. Yet most people don't go out and buy Teslas because they just cannot afford them.

seanpitt237d ago

People want it to be $399 but expect it to be crazy powerful and 13Tf, 24GB ram 4K bluray drive etc... it's amusing how people expect the best on the market and want it to be really cheap.
If it's $399 don't expect 4K 60fps it won't happen they would of had to cut corners and it won't be as powerful as people say
If it's $499 then yeah it will be a beast and this is the price they should be going for if you can't afford it buy the pro that will be $299 soon

+ Show (6) more repliesLast reply 7d ago
GnarleySquid8d ago

You have to wonder what will propel the demand for the next consoles. I have quite a few friends that don't even care about them.

CyrusLemont7d ago

The data streaming, increased RAM and more powerful CPU advancements are going to be so important.

Starfield
GTA VI
TES VI
Ubisoft open-world titles
Next gen DC games
Open world Harry Potter
Open world Avengers game?
Naughty Dog!

More physics reactive environments, smarter AI, more NPCs, faster travel with higher detail.

The Superman era of games will finally come. Hardware will no longer limit AAA developers.

DJStotty7d ago

@Cyrus

Hardware will always have limits.

If there are no limits, there is no need for new hardware

gangsta_red8d ago

I'm curious myself, especially with the next consoles being forward and backward compatible (supposedly).

What will these new consoles do to make a gamer purchase day one?

Nyxus8d ago

I haven't heard anything about the PS5 being forward compatible. I hope it isn't to be honest, because that way everyone will be at the new baseline that the PS5 sets.

gangsta_red8d ago

I'm just assuming based on what we're seeing with the Pro and X (and rumors floating around).

Besides the 8k, where else can these consoles really go? More power, possibly, but we had that this gen and the games might have been bigger but weren't much different than what we played last gen with PS3 and 360.

Nyxus8d ago

@ gangsta: the Pro and X are mid-gen upgrades, not next-gen consoles. The way Cerny has been talking about the PS5 it sounds like it will be a traditional generational leap.

tree_fiddy8d ago

PS5 won't be forward compatible so won't Xbox One (X), regardless what they stated.

Atom6668d ago

Going back to the Cerny interview, they talk about the cross-gen stuff. It seems like all of the big games on the horizon will still be PS4 bound.

With this and the mid-gen stuff, I'm expecting a more measured transition to next gen.

Just speaking personally, unless games are completely locked to PS5 or the next Xbox, I'm going to ride this generation out for a while.

gangsta_red8d ago

@nyxuss
"..the Pro and X are mid-gen upgrades, not next-gen consoles"

I know this, but we can see the groundwork that Sony and MS are laying out with those mid gens as examples.

Especially with the consoles using the same type of pc architecture rather than the proprietary things they did last gen.

The way Cerny talked about PS5 wasn't really too much of leap except in terms of the graphics (from what I remember) but nothing too outrageous that the PS4 couldn't possibly handle.

It'll still be interesting though.

@atom
Agreed, I'm curious but not in any rush unless like you said both Sony and MS decide to lock the next gen systems. Then it's definitely decision time.

Nyxus8d ago

@ gangsta: the PS4 Pro was a hardware revision to account for 4K and VR. It has nothing to do with the PS5. From the Wired interview:

"As he did with the PS4, Cerny acted as lead system architect for the coming system, integrating developers’ wishes and his own gaming hopes into something that’s much more revolution than evolution. For the more than 90 million people who own PS4s, that's good news indeed. Sony’s got a brand-new box. A true generational shift tends to include a few foundational adjustments."

Also:

"As in many other generational transitions, this will be a gentle one, with numerous new games being released for both PS4 and the next-gen console."

That sentence alone tells pretty much you it's not forward compatible.

gangsta_red8d ago

@nyxuss

"..the PS4 Pro was a hardware revision to account for 4K and VR"

Agreed, they could still play vanilla PS4 games and upgrade them automatically. Which is why that leads me to believe the same might be with PS5, next box.

They're already laying the foundation to gamers on more optional consoles but not needing the latest brand new console to play all their games.

Those quotes you left are pretty vague and broad and doesn't necessarily mean that the PS5 cant potentially have the means to be forward and backward. But hey, if I'm wrong, then I'm wrong, no worries.

Regardless it'll be interesting to see what these next gen consoles have in store for gamers. Exciting times are ahead for everyone.

Dragonscale8d ago

Same reasons as this gen, last gen etc and probably next gen. New games and more power.

gangsta_red8d ago

@dragonscale

I think the more power angle is wearing thin. Games themselves haven't fundamentally changed since last gen. We may have bigger worlds but we're still doing the same thing we were last gen in these worlds.

I would like to see something more with these new consoles along with the increased power.

8d ago
xX-oldboy-Xx8d ago

gangsta_red - You're an ms supporter, you don't get the quality of games Sony provides. With the quality of visuals Sony studios can create. PS3 pumped out some amazing games with amazing visuals for its time, PS4 is now doing the same. PS5 should make PS4 games look average, while still good - they clearly shouldn't be able to run and look anything like the PS5 version.

That's why a true console gen is needed, not just the equivalent of a mid gen upgrade. Now - if ms wants to do away with console gens, then consoles become essentially pre-made Pc's. I don't want that, I'll build another PC.

The X hasn't even had it's potential tapped, it's a BEAST of a machine - some would say the equivalent of a new gen. Not like the pro which was a true incremental upgrade - it could NEVER be considered a console upgrade.

gangsta_red7d ago

xX-oldboy-Xx - as you yourself are a tried and true sony supporter the shilling comes naturally, but nothing you said really has anything to do with the points here.

The graphics will be better, obviously but it won't be leaps and bounds above what we're seeing now especially with 8k still a ways off and even now we're seeing tech that scales graphics and resolution up. There wasn't really any huge leaps from PS3 to PS4 in that regards.

Not to mention with Sony's recent partnering with MS we could see more of this potential forward and backward use if these consoles will use the cloud for AI, environments and other uses that don't need the actual tech inside a console to run.

Interesting times ahead.

Realms7d ago

What do you mean what's going to get people to buy a next gen console? Games are GTA6 is reportedly not going to be available on the PS4 or Xbox one do to how massive it will be so unless you don't want to play some of the biggest titles then no you won't need to upgrade.

nucky647d ago

reasons to buy? better AI. better physics. more realistic behavior from NPCs/animals etc... more realistic weather, reflections. beter volumetric effects (fog,dust, smoke). ray tracing. higher onscreen enemy count. higher/more stable framerates.
as far as purchasing day 1 - for me it comes down to if there is at least 1 game that i really want - otherwise i'll buy as soon as that happens.

slayernz7d ago

@ gangsta

"I think the more power angle is wearing thin. Games themselves haven't fundamentally changed since last gen. We may have bigger worlds but we're still doing the same thing we were last gen in these worlds. "

with more power they can do so much more within these worlds....ie imagine how immersive a massive open world would be where everything is as you left it....ie just at the beginning of a game you killed someone and came back later and the body was still there, but maybe some wildlife had taken an interest in it and had a nibble on it or naturally decayed and bones were left there etc

i can imagine playing days gone and the freakers are where you left them (at the moment they disappear) so after you finish destroying a horde the pile of bodies stays there - and crows etc fly around

use your imagination mate!!! there is so much more still possible!!!!

DJStotty7d ago

Good luck with that 8K and the £3000 tv

+ Show (15) more repliesLast reply 7d ago
2pacalypsenow8d ago

The same thing that made people upgrade from PS3 to PS4

yomfweeee8d ago

Same thing as always. More power.

I mean what did the PS4 offer that the PS3 didn't? Nothing but more power.

gam3r_4_lif38d ago

Better looking games with better physics and AI

Dragonscale8d ago

And a lot of people have quite a few friends that do. Such a great metric lol.

nucky647d ago

you and your friends must live in a sensory deprivation tank to say that.

+ Show (4) more repliesLast reply 7d ago
Uglyday8d ago

Unlike the mildly successful X1X the PS5 will be wildly successful. Why aim low.

ifinitygamer8d ago

You spelled "wildly" wrong. Okay, that's a joke, we obviously don't have any numbers for Xbox One X specifically, but still, imagine a PS5 at $399. *drools*
$499 is too high, don't make the same mistake!

BQ328d ago

The mistake would be to start a generation with underpowered hardware.

tree_fiddy8d ago

X1X hasn't even been in the top 100 on Amazon US all year.