The starch rate for games is a lot lower than you think.
The average is 10 games, so £500 if they’re £50 each.
Poll: *The Official PlayStation (PS5/PS5 Pro) Thread*
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The starch rate for games is a lot lower than you think.
The average is 10 games, so £500 if they’re £50 each.
No, you're missing the point - you cannot dismiss the digital vs disc argument!
Your argument that two digital sales would make up the £100 difference in cost would presuppose that 100% of that game sale is profit (it would need to be) and that the gamer would not have bought those same games had they bought the disc version (unlikely).
I have no doubt Sony will have worked out a breakeven point at which the price differential between digital and disc consoles will be made up by the additional profit rate of digital........but it most definitely isn't two!
But the only bit of this that's important is the extra profit, above the cut they would have taken had the customer bought the regular PS5 and then the games on disc.
For argument's sake, let's say they make £5 profit (10%) when a disc is sold, and £15 profit (30%) when a digital copy is sold. They therefore make £10 extra profit from the digital sale. 30% of the purchases made by a typical PS5 (non-Digital) customer are digital, with 70% being on disc. In this scenario, if they move a PS5 customer over to PS5 Digital, with a £100 subsidy:
- The break-even point is at 14 games sold (they make £10 extra on 70% of purchases).
- They make extra profit if they sell 15 or more games.
- They make a loss on the subsidy if they 13 or fewer games.
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Associate
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If the digital edition is £100 cheaper it doesn't mean that Sony is subsidizing it by £100 because the UHD disc drive isn't free. Don't know how much it costs them to manufacture but I'd imagine it's a fair amount.
It was an example
I don't know what Sony's margins are. But that is not relevant to the point being made. Whatever the numbers are, this is the right way to count them (simplified, but along the right lines).
Lets hope they have a enough on release day
Sony Corp. has cut its estimated PlayStation 5 production for this fiscal year by 4 million units, down to around 11 million, following production issues with its custom-designed system-on-chip for the new console, according to people familiar with the matter.
https://www.bloomberg.com/news/arti...ut-ps5-forecast-by-4-million-due-to-chip-woes
Sony Corp. has cut its estimated PlayStation 5 production for this fiscal year by 4 million units, down to around 11 million, following production issues with its custom-designed system-on-chip for the new console, according to people familiar with the matter.
https://www.bloomberg.com/news/arti...ut-ps5-forecast-by-4-million-due-to-chip-woes
This figure keeps changing, last I read they had doubled production from 5 million to 10 million so I don't know where 15 million came from.
Exactly, because they have already had a hour live stream presentation on the games for the PS5 in the event back in June.
We still haven't even seen the back of the console for the ports on it.
I would like to know how PSVR will connect to it. It would be fantastic if the headset plugged in directly and didn't need the faff of the breakout box and mess of cables.
I would like to know how PSVR will connect to it. It would be fantastic if the headset plugged in directly and didn't need the faff of the breakout box and mess of cables.
Not sure I'm even getting one now. I was weighing things up during my run this morning and reckon I'm going to plonk for the XSX this side of Christmas, which for me is better value simply because there are so many games on Game Pass and EA Play that I want to play again. If I got the PS5, I could barely afford anything to play on it, if there are no PS5 games coming to PS Now. I already have an Xbox controller, whereas I would need to buy a second DualSense as well. I have enough MS reward points to shave 1/3 off the price of the SSD cart. It's all fitting neatly in to place on the Xbox side. A bit sad but I'll get the PS5 next year.
I only but "AAA" games when they're on sale. There's no chance I'm paying £60 (or most likely £70 for this new gen) for a game when I can get it for £45.
Soldato
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As far as I can tell, Bloomberg themselves were the original "source" for most of these claims!
What about all those PS4 games you were planning to play on the PS5 for no benefit whatsoever?
What about all those PS4 games you were planning to play on the PS5 for no benefit whatsoever?
They'll be there, waiting for me. At least I get free PS5 upgrades to Witcher 3 and Borderlands 3.
When they're available will a good time to jump in. Who knows, I might have changed my mind after tomorrow night's event and will ditch the Xbox and continue using my PC instead!hahaha, that's the problem at the moment - it doesn't take much and we shift with the wind!They'll be there, waiting for me. At least I get free PS5 upgrades to Witcher 3 and Borderlands 3.
A decent price announcement tomorrow and we could all be moving back to favouring the PS5 again.
hahaha, that's the problem at the moment - it doesn't take much and we shift with the wind!
A decent price announcement tomorrow and we could all be moving back to favouring the PS5 again.
Indeed and it's squarely down to the platform holders not providing us with all the information needed to make an informed decision. Sony clearly is the worst offender this time.