PS5 Price Will Determine Other Factors, Says Sony Investor Call
Many PlayStation fans who have been following news of the PlayStation 5 have noticed one big piece of news still up in the air: the PS5's price tag. In an investor's call, Sony and CFO Hiroki Totoki said the price would depend on some unknown factors, including the price of competing consoles.
The PlayStation 5 is slated to have a released date of Holiday 2020, however, not a lot of details have been released about exclusives, specs, or even a price tag. Fans of PlayStation have been making some interesting wishlists and guesses for the next-gen Sony console, but almost nothing has been released officially.
Although Nintendo has said that it doesn't view the upcoming PlayStation or Xbox consoles as competition, Xbox and PlayStation have been rivals since the beginning. It's not a surprise that Sony is waiting out the Xbox Series X's price point to make sure that they will be competitive with their biggest rival in the business.
In an investor's call, CFO Hiroki Totoki spoke through a translator about not knowing the price of the PlayStation 5 because the price point needs to compete with the Xbox's, "Because we are competing in the space, it is very difficult to discuss anything about the price at this time," Totoki stated, "Depending upon the price level, we may have to determine the promotion that we are going to deploy, and how much cost we are prepared to pay. So it is a question of balance."
The PlayStation 4 was launched in 2013 at $399.99, and the Xbox One launched at $499.99 in the same year. Given the price points of the two systems, it shouldn't surprise anyone that the PlayStation 4 sold much better than the Xbox One. While the Nintendo Switch was the fastest to 50 million units sold, the PlayStation 4 was second and outsold the Xbox by nearly double, according to estimates. Given those numbers, it's not a surprise that Sony is wary of making a price point that is too far from the Xbox Series X's.
While this might seem like bad news for the PlayStation fans, it could also be a good thing. Since the PlayStation 5 feels it is in direct competition with Microsoft, this may mean better prices for units and comparable prices for games. The last thing gamers want is for any of the manufacturers of consoles to think they have a monopoly; It would drive the cost of consoles up exponentially.
Most consoles make almost nothing compared to what they cost to manufacture. The PS4 was said to cost Sony $381 to make, leaving them with about $18 in profit per unit and Microsoft reportedly lost money on each Xbox One sold. Keeping it that way will ensure cheaper consoles in years to come. Players are hoping that the rumored PS5 revel in March 2020 will give everyone the pricing news they are hoping for.
However, if the PlayStation 5 is forced into a very low price point by Microsoft, it may cause some features to be lost. It's a worry that since Sony feels the need to match Microsoft's pricing, PS gamers may lose some functionality that they are hoping to see with the next generation to keep manufacturing costs in line with the pricing. Hopefully, Sony will be able to balance money with power and bring everyone a great console they've been dreaming of.
Source: GameSpot
Post a Comment