U buying the PS5?

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quasa
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#41
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#41
(Original post by Gofre)
I know, but the specific SKU Amazon currently sell was added in 2016.

The PS5 will probably depreciate more because the price is going to be inflated in the first place because component scarcity has driven up the production costs, and demand is likely to be higher than production can keep up with. Microsoft are having the same issues, it's why both of them are playing chicken with announcing price as late as possible, neither want to admit how much it's going to be until the other does so they can marginally undercut them.

Give it a couple of years for component prices/availability to normalise and production to increase, and it will become a bit more reasonable.
I wouldnt be surprised to see it as high as £600 for the disk console and £500 for diskless tbh
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Gofre
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#42
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(Original post by quasa)
I wouldnt be surprised to see it as high as £600 for the disk console and £500 for diskless tbh
I think that's what they should cost under existing models, but they're both scrambling to avoid actually charging that. If I was a betting man (well I am, but not on the speculative price of electronics) I'd predict whoever shoots first goes £550 for the "main" version, which the other will undercut to £500 and eat the short term loss, with diskless models coming in about £75-£100 cheaper.
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quasa
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#43
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(Original post by Gofre)
I think that's what they should cost under existing models, but they're both scrambling to avoid actually charging that. If I was a betting man (well I am, but not on the speculative price of electronics) I'd predict whoever shoots first goes £550 for the "main" version, which the other will undercut to £500 and eat the short term loss, with diskless models coming in about £75-£100 cheaper.
if you go by standard retail behaviour in the uk, the rrp of the product would cost 1.8 times the cost of making the product (including labour), thereby resulting in a 50% profit as rrp includes 20% vat. considering the ps5 supposed costs $450 to make (~£343), that means in theory the console would logically retail for ~£618. however considering both companies obviously want to attract gamers / consumers, dont be too surprised, like you said, for them sell it at £500 range. it does however make me wonder why there is such a massive markup on premium smartphones as the phones themselves cost £200-£400 to make yet they retail for close to £1000 (if not higher)
Last edited by quasa; 1 month ago
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Gofre
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#44
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(Original post by quasa)
if you go by standard retail behaviour in the uk, the rrp of the product would cost 1.8 times the cost of making the product (including labour), thereby resulting in a 50% profit as rrp includes 20% vat. considering the ps5 supposed costs $450 to make (~£343), that means in theory the console would logically retail for ~£618. however considering both companies obviously want to attract gamers / consumers, dont be too surprised, like you said, for them sell it at £500 range. it does however make me wonder why there is such a massive markup on premium smartphones as the phones themselves cost £200-£400 to make yet they retail for close to £1000 (if not higher)
The consoles themselves are a little different in that they can still afford to be loss leaders, taking smaller cuts of profit on the initial sale which they will then recoup over the course of its lifetime with online multiplayer subscriptions their cut of game sales. This year it's just going to have a lot more emphasis on the word "loss" :ahee:

As for smartphones, the answer's been pretty clear for at least the last five years- it's to push people towards multi-year contracts as hard as they can. £1200 a month for a new iPhone or Galaxy Note sounds obscene, so £65 per month for two years with a £100 upfront charge suddenly sounds downright reasonable. It's even worse in the US, prices are obscene.
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quasa
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#45
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(Original post by Gofre)
The consoles themselves are a little different in that they can still afford to be loss leaders, taking smaller cuts of profit on the initial sale which they will then recoup over the course of its lifetime with online multiplayer subscriptions their cut of game sales. This year it's just going to have a lot more emphasis on the word "loss" :ahee:

As for smartphones, the answer's been pretty clear for at least the last five years- it's to push people towards multi-year contracts as hard as they can. £1200 a month for a new iPhone or Galaxy Note sounds obscene, so £65 per month for two years with a £100 upfront charge suddenly sounds downright reasonable. It's even worse in the US, prices are obscene.
at least stateside they offer bogof on new smartphones (including flagships), whereas uk they dont (bogof = buy one get one free).
£65 a month is still too expensive imo and glad im only paying £15 a month (including insurance) for my pixel 3a (I paid around £300 upfront however)

but yeah, i remember ps3s were sold at a loss when they were new, so wouldnt be surprised to see them, like you said, take smaller revenue on hardware and make it up via subscriptions and game sales
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Gofre
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#46
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(Original post by quasa)
at least stateside they offer bogof on new smartphones (including flagships), whereas uk they dont . £65 is still too expensive and glad im only paying £15 a month (including insurance) for my pixel 3a (I paid around £300 upfront however)
Yeah it's way too much, but a phone plan is a relatively simple calculation- they need to recoup the retail value of the phone and the sim plan, plus a little extra profit. So if you pick a cheap phone, you can get a cheap overall plan. In the US, however, there is a floor on how cheap they will give you a phone plan. Like on AT&T's site now if you wanted to get the cheapest phone available, for example a £120ish phone like the Galaxy A11 (the cheapest I can see right now), the cheapest available sim plan is $50 per month for 3GB. You can pay $65 for unlimited data, but the first line of the plan description is telling you they're allowed to throttle you arbitrarily. Even if you pay for their most expensive plan at $85 per month, they're still going to throttle you if you use over 100GB. I was shopping around for plans when I was there for a few months with work last year, it's utterly warped.
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quasa
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#47
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(Original post by Gofre)
Yeah it's way too much, but a phone plan is a relatively simple calculation- they need to recoup the retail value of the phone and the sim plan, plus a little extra profit. So if you pick a cheap phone, you can get a cheap overall plan. In the US, however, there is a floor on how cheap they will give you a phone plan. Like on AT&T's site now if you wanted to get the cheapest phone available, for example a £120ish phone like the Galaxy A11 (the cheapest I can see right now), the cheapest available sim plan is $50 per month for 3GB. You can pay $65 for unlimited data, but the first line of the plan description is telling you they're allowed to throttle you arbitrarily. Even if you pay for their most expensive plan at $85 per month, they're still going to throttle you if you use over 100GB. I was shopping around for plans when I was there for a few months with work last year, it's utterly warped.
yikes, definitely sounds bad. do they do PAYG stateside?
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Gofre
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#48
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(Original post by quasa)
yikes, definitely sounds bad. do they do PAYG stateside?
Yep, it's nuts. For pricier phones the sim plans are exactly the same but you have to pay a monthly cost for the phone on top of that. It's like O2 Refresh, except instead of splitting the cost of the contract reasonably between the handset and sim plans to allow for smoother upgrades, they're just gouging you twice. And they can get away with it because selling handsets unlocked is still not super common (and, as you originally noted, prices are insanely inflated) and if they're going to gimp you on the sim-only plan anyway then you may as well just get the full contract.
Last edited by Gofre; 1 month ago
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ANM775
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#49
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(Original post by Gofre)
I think that's what they should cost under existing models, but they're both scrambling to avoid actually charging that. If I was a betting man (well I am, but not on the speculative price of electronics) I'd predict whoever shoots first goes £550 for the "main" version, which the other will undercut to £500 and eat the short term loss, with diskless models coming in about £75-£100 cheaper.
(Original post by quasa)
if you go by standard retail behaviour in the uk, the rrp of the product would cost 1.8 times the cost of making the product (including labour), thereby resulting in a 50% profit as rrp includes 20% vat. considering the ps5 supposed costs $450 to make (~£343), that means in theory the console would logically retail for ~£618. however considering both companies obviously want to attract gamers / consumers, dont be too surprised, like you said, for them sell it at £500 range. it does however make me wonder why there is such a massive markup on premium smartphones as the phones themselves cost £200-£400 to make yet they retail for close to £1000 (if not higher)

Analysts are saying they think both companies are aiming to release their consoles under the £$500 mark.

Also at the start consoles are typically sold at somewhat of a loss and the companies recoup the losses through games sales.

I would bet money on the ps5 retailing for between £399.99 and £499.99 on release
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DiddyDec
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#50
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No, I might get a PS4 once the prices drop though.
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