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PS5 price to increase in select markets due to global economic environment, including high inflation rates

Brian

By Brian
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chakoo

chakoo

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1 hour ago, Paperclyp said:

Free press for the switch and Xbox when they were already profiting on the things anyway. Funny they know the US will be the most reactionary so they’re trying to have their cake and eat it too. 

Not to mention the switch did raise their price with the OLED model and haven't done price cuts on the original switch which is now 5 years old running on an 7 year old SOC.

 

MS I give a pass because they're very much eating a loss on their side.

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Paperclyp

Paperclyp

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2 hours ago, chakoo said:

Not to mention the switch did raise their price with the OLED model and haven't done price cuts on the original switch which is now 5 years old running on an 7 year old SOC.

 

MS I give a pass because they're very much eating a loss on their side.

They released a better model and charge more for it. Equating that with a price raise or even comparing a non-price drop versus what Sony is doing is a pretty shakey premise, and I find it kind of weird / bordering on defense of Sony? What exactly are you giving MS a pass on? 
 

I might agree with what you’re saying, I just honestly am not sure what that is haha

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crispy4000

crispy4000

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11 hours ago, Brian said:
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Japanese players are begging for Final Fantasy 16 on Steam after the PS5 price hike | GamesRadar+

WWW.GAMESRADAR.COM
Sony may be making PC gamers out of Final Fantasy fans

Wonder if the heat will get hot enough for Sony to reconsider 

 

@Bacon


I wonder how much a PC that runs it decently would cost to build…

 

They’re just using this as an excuse to port beg.

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chakoo

chakoo

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4 hours ago, Paperclyp said:

They released a better model and charge more for it. Equating that with a price raise or even comparing a non-price drop versus what Sony is doing is a pretty shakey premise, and I find it kind of weird / bordering on defense of Sony? What exactly are you giving MS a pass on? 
 

I might agree with what you’re saying, I just honestly am not sure what that is haha

The BOM on the regular model and the OLED model are not a large enough gap for the $50 price increase. In the past game companies have released better models without upping the price. An example is the new 3DS XL came out at the same price of the normal XL with far more changes to the hardware.

 

So yes, nintendo is charging gamers more for the OLED model simply because they can. 

 

BTW this isn't meant to be a shill for sony, this board already knows how much nintendo shit I own. Just more pointing out shit (I noted how most seem to forget the ps4 had a price increase outside the US but most don't remember that).

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Paperclyp

Paperclyp

Posted
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1 hour ago, chakoo said:

The BOM on the regular model and the OLED model are not a large enough gap for the $50 price increase. In the past game companies have released better models without upping the price. An example is the new 3DS XL came out at the same price of the normal XL with far more changes to the hardware.

 

So yes, nintendo is charging gamers more for the OLED model simply because they can. 

 

BTW this isn't meant to be a shill for sony, this board already knows how much nintendo shit I own. Just more pointing out shit (I noted how most seem to forget the ps4 had a price increase outside the US but most don't remember that).


That’s fair, but it is pretty bad optics to raise the price under the circumstances. It doesn’t exonerate nintendo perhaps reaching with its price raise for a new sku, you’re right. 
 

I wonder if Sony is doing worse than maybe we know. 

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chakoo

chakoo

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1 minute ago, Commissar SFLUFAN said:

 

The fact of the matter is that sales of the actual physical console have essentially become a nice "perk" for MS and are not the main focus of their Xbox business line.

 

That belongs to Game Pass.

Oh that I know. Consoles are nothing more than a hobby to MS. Even being first in sales wouldn’t change that.

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crispy4000

crispy4000

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8 hours ago, Commissar SFLUFAN said:

 

The fact of the matter is that sales of the actual physical console have essentially become a nice "perk" for MS and are not the main focus of their Xbox business line.

 

That belongs to Game Pass.

 

8 hours ago, chakoo said:

Oh that I know. Consoles are nothing more than a hobby to MS. Even being first in sales wouldn’t change that.


This is far too reductive.  Xbox consoles are currently a pillar of their buisness model, not merely a “perk,” and it’s hard to see a scenario where it wouldn’t at least remain an anchor for them. 

 

Xbox systems allow them to generate almost 1.5x more subscription revenue, own the platform to set that rate and hold market influence.  It’s where people will actually pay “Ultimate” premiums.  It explains why Microsoft got greedy and tried to double the price of Gold: to push the stragglers in their dedicated install base towards the premium package.  There wouldn’t be any reason to do that for a “hobby” business.

 

Consoles also are their ticket to royalties.  There is no point in the foreseeable future where Microsoft will corner the market for PC DLC.  On Xbox consoles?  It’s all them.  And for those who still buy games, as they will for the right release (hello Elden Ring, GTA6, etc), the business they’re running is still plenty lucrative.  Making money on the actual hardware sale has always been secondary.
 

What could make their console business look insignificant?  Games Pass on Steam, on terms Valve would accept? Games Pass on Sony and Nintendo consoles, for whatever it takes?  None of that would get them there, unless their console line takes a Wii U dump.
 

The dissolution of their console business isn’t the end game.  They’ll keep their console cash cow running for as long as people keep buying them.  They’ll push Games Pass independent of other storefronts, until they force someone’s hand.  They’ll continue efforts for mass adoption of xCloud on TV apps and mobile.  And eventually, they’ll raise their subscription prices.

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BloodyHell

BloodyHell

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On 8/27/2022 at 12:50 AM, crispy4000 said:

 


This is far too reductive.  Xbox consoles are currently a pillar of their buisness model, not merely a “perk,” and it’s hard to see a scenario where it wouldn’t at least remain an anchor for them. 

 

Xbox systems allow them to generate almost 1.5x more subscription revenue, own the platform to set that rate and hold market influence.  It’s where people will actually pay “Ultimate” premiums.  It explains why Microsoft got greedy and tried to double the price of Gold: to push the stragglers in their dedicated install base towards the premium package.  There wouldn’t be any reason to do that for a “hobby” business.

 

Consoles also are their ticket to royalties.  There is no point in the foreseeable future where Microsoft will corner the market for PC DLC.  On Xbox consoles?  It’s all them.  And for those who still buy games, as they will for the right release (hello Elden Ring, GTA6, etc), the business they’re running is still plenty lucrative.  Making money on the actual hardware sale has always been secondary.
 

What could make their console business look insignificant?  Games Pass on Steam, on terms Valve would accept? Games Pass on Sony and Nintendo consoles, for whatever it takes?  None of that would get them there, unless their console line takes a Wii U dump.
 

The dissolution of their console business isn’t the end game.  They’ll keep their console cash cow running for as long as people keep buying them.  They’ll push Games Pass independent of other storefronts, until they force someone’s hand.  They’ll continue efforts for mass adoption of xCloud on TV apps and mobile.  And eventually, they’ll raise their subscription prices.

I mean, you can say all of that, but Phil Spencer has said multiple times, Gamepass is the platform, not xbox, and they very much see consoles as a necessary evil. They don't care where you play, as long as it is on gamepass. Thats why Samsung TV's are going to have it built in. 

 

Obviously, cloud isn't ready for twitch shooters and other experiences which require really low latency, but theyve talked multiple times about how Cloud is the future, and while I believe there will be a mid generation refresh, I don't think we see a next xbox. The cloud service works really well for the vast majority of games.

 

I also think MS will be market leader soon enough.

 

Honestly, with the war chest MS has, when they started asking MS about Price increases, MS should have announced a 30$ price drop, framing it as helping gamers in a rough time, saving them enough for two months of gamepass.  Of course im not a business man, I don’t know or understand MS's financial stuff, or how much they are losing, but it would have been an incredible coup de grace. 

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crispy4000

crispy4000

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16 hours ago, BloodyHell said:

I mean, you can say all of that, but Phil Spencer has said multiple times, Gamepass is the platform, not xbox, and they very much see consoles as a necessary evil. They don't care where you play, as long as it is on gamepass. Thats why Samsung TV's are going to have it built in.


"In terms of future hardware, absolutely, I think we're going to see more console hardware down the road. Just like in-- in video, just like in music, it's not that streaming has cut off device innovation. I think we'll continue to see that, and that's absolutely what we're planning for."


No where has Phil given a hint that their console business is something they'd like to get out of if they could.

 

In fact, it's an unnecessary evil that they charge for Gold.  But they do it anyways, because they're going to leverage their position.

 

16 hours ago, BloodyHell said:

Obviously, cloud isn't ready for twitch shooters and other experiences which require really low latency, but theyve talked multiple times about how Cloud is the future, and while I believe there will be a mid generation refresh, I don't think we see a next xbox. The cloud service works really well for the vast majority of games.

 

Bold words considering Phil's stance above.

 

This is like saying that Nintendo will leave the portable market because phone gaming is the future.  We’re now two portable generations past the pundits insisting on that.

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