Bloomberg dropped some hot gaming news this week, and Forbes ran its own story supporting the report, so we can now confidently say the next PlayStation 5 will likely cost between $ 500 and $ 550 at launch.
In this article we will detail the reason for the price drop around that allpark, how it compares to the general gaming scene and how most gamers feel about it.
Playstation 5 production has always been more expensive than PlayStation 4, which is one of the biggest selling points in the system, and the SSD costs a little more than the less powerful hard drive, and Sony has also invested a lot more in the PlayStation 5 cooling system than it did with the PS -4, After every PS-4 looked like a jet engine every time it tried to play a game made after 2017, it was one of the biggest criticisms of the system.
Among these more advanced components and the usual bells and whistles in the game console, the PS-5 costs approximately $ 500 to collect, of course these are not the only expenses Sony needs to cover console sales, shipping, marketing, and research costs must also be covered by the PS-5 launch price, as Sony has given other revenue streams to cover those expenses and turn into pennies on the dollar with higher sail volumes, but it’s still a factor, so it won’t be surprising if the launch price ends at the upper end of the price window, again this also depends on global events that do not Impede production or boil down Sure shipping ports, so there is still some uncertainty in all of this.
Some optimistic gaming and gaming users have speculated that Sony will sell the PS-5 at a loss when it is first launched, possibly leading the system to drop to $ 450 upon investment, assuming that the production figures cost are accurate there are two reasons for Sony to start early with PS -5, the first is that it will allow them to outperform their biggest competitor Microsoft.
If the PS-5 becomes the go-to console for the majority of gamers Sony will likely to form more partnerships and have more revenue opportunities in the long run, and of course selling more of the PS-5 period would be great for Sony like the vast majority of their profits come Of software sales rather than hardware sales.
It is unlikely that Sony or any modern technology company will sell the PS-5 at a loss, as this is a very big financial gamble and we do not see the major technology companies risking this type of risk today.
Now that we’ve determined why the PS-5 will be between $ 500 and $ 550, let’s get into how this fits into the gaming industry today.
Prices for video game consoles have varied greatly over the years even when controlling for inflation, the NES (Nintendo Entertainment System) was the first major home gaming system to cost around $ 179 in 1985, and the Nintendo Switch which is technically the first such next-generation system cost time Only about $ 300 at launch in 2017 compared to the original PlayStation cost of $ 300 when it premiered in 1995, in a move that almost destroyed the company and allowed Microsoft to acquire a niche in the game business, Sony imposed a whopping $ 600 on PS-3 in 2006, So the $ 500 price on PlayStation 5 seems to be just right for the next generation game system in 2020, so it makes sense that the Xbox Series X will come in at that price point as well, given that neither of the two companies has their console price officially announced people speculate That the chicken game takes place right now, which means that once a company sticks to a price, the other will receive a smaller amount after a few days, while it is common for companies to strategize against each other in their planning matters. This is rarely a reaction and small limits.
Decisions such as how much a console cost has to be ordered in a window upfront somewhat as it affects a lot of other decisions, if the console has almost zero margin, games should be released fairly quickly to cover expenses and vice versa, of course it is worth noting Also, the difference of up to $ 50 will not be very important at these price points.
For example, a $500 PlayStation 5 and a $550 Series X won’t make people flock to Microsoft’s system by just $100 or so is really helpful when it comes to investing several hundred dollars, in fact there is little evidence for That PS-4 costing $100 less than Xbox One is what has made the system so much more successful in past generation, arguably the large PS-4 set of major titles has made it more attractive to consumers in the long run.
Once again, Xbox one always needs internet connectivity, and Home Media Center Marketing didn’t provide any services for Microsoft.
Let’s take a look at what gamers feel about the potential purchase price of $500 for a PS-5, most gamers are very cool with paying about $500 for PS-5, after all this is over a $100 dollars more than the Playstation 4 and it was a popular price since If people start talking about next-generation keyboards, if the system is already an upgrade as far as Sony promises, it seems that people are more than willing to pay an extra amount of money, in fact with the rise of the PS 5 PCs it is a relatively cost-effective alternative Looking at the specifications.
If this price point is not a problem for most gamers, this means that launch titles will be the deciding factor in any system that really launches, while neither Microsoft nor Sony have revealed many of the next generation titles that Microsoft has spent in the past few years acquiring many studios Indie, so it seems ready to do well with exclusive next-generation titles.
Again Sony nailed exclusives this past generation with titles like blood-borne, god of war, persona 5, horizon zero dawn and death stranding.
The PS4 does something for everyone and the same can easily apply to PlayStation 5, well there’s definitely still a lot up in the air, one thing we can definitely say is Sony really needs to show what they have in store for us soon.