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Next-gen game consoles from Sony and Microsoft can't cost over $400 – Business Insider – Business Insider

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  • This holiday, the next-generation Sony PlayStation and Microsoft Xbox video game consoles are scheduled to arrive.
  • Sony’s PlayStation 5 and Microsoft’s Xbox Series X are largely known quantities at this point, except for one major detail: Price.
  • The PlayStation 5 could cost nearly $500, sources within the company told Bloomberg, due to manufacturing costs and parts.
  • More than just a high price, the history of video game console pricing dictates that charging over $400 for a new game console is likely to result in a sales flop.
  • Visit Business Insider’s homepage for more stories.

Next-generation video game consoles from Sony and Microsoft – the PlayStation 5 and Xbox Series X, respectively – are scheduled to arrive this holiday season.

Though much is known about each console, there’s still one major question: How much will the two new consoles cost?

Neither company has said as much officially, but Sony’s PlayStation 5 has a potential price tag: At least $470, and maybe more, according to sources within Sony speaking to Bloomberg.

That price, which is reportedly due to a scarcity of certain components, could be a big mistake. Historically speaking, most video game consoles cost $400 or less. The ones that cost more than $400 tend to struggle – meaning that if Sony were to go that route, that high price could cost it the next big battle with Xbox in the console wars.

Take Sony’s PlayStation 3, for example: In 2006, Sony launched the PlayStation 3 as a follow up to its wildly successful PlayStation 2.

Foto: Sony launched the PlayStation 3 in 2006 with a base price of $500 and a premium version that cost $600.sourceSony

The Japanese consumer electronics giant was riding high on the landmark success of its prior console, and set the price of its new PlayStation higher than ever before: The base model would cost $500, and a premium model with more storage would cost $600.

When the PlayStation 3 launched in November 2006, it arrived alongside a wave of criticism from consumers and game makers alike. Consumers didn’t like the notoriously high price of the console, and game makers didn’t like the complexity of making games for the PS3, which used a non-traditional „Cell“ processor instead of the more familiar architecture used by Microsoft’s Xbox 360.

„I’m getting concerned about Sony; the PlayStation 3 is losing a bit of momentum and they don’t make it easy for me to support the platform,“ Activision CEO Bobby Kotick said in a June 2009 interview, two years after the PS3 launched. „It’s expensive to develop for the console, and the [Nintendo] Wii and the Xbox [360] are just selling better.“

The PlayStation 3’s reception looked especially bad by comparison with the competition: Nintendo’s Wii was at peak popularity, and Microsoft’s Xbox 360 was a runaway success despite requiring a $1 billion recall program in the wake of the so-called „Red Ring of Death“ scandal.

It took years for Sony to make up some of the ground it lost to competition from Microsoft and Nintendo, after lowering the price of the PlayStation 3 and bolstering the console’s game library. By the time the PlayStation 4 launched in 2013, Sony had ingested the lessons of the PlayStation 3’s failures.

The cost of the PlayStation 4? $400.

Microsoft makes its own mistake

Microsoft, however, was about to make its own major pricing mistake with the Xbox One.

Foto: Microsoft’s Xbox One launched at $500 in the US in November 2013.sourceMicrosoft

In June 2013, Xbox leader Phil Spencer told attendees of Microsoft’s annual Xbox briefing that the forthcoming Xbox One would cost a whopping $500 at launch.

The reason for the notably high price was clear: Every Xbox One console came with the Kinect, its groundbreaking camera/microphone accessory.

The peripheral, which started life on the previous generation Xbox 360 consoles and found massive success as a standalone device, was upgraded for the Xbox One and included with every console. Microsoft envisioned a future where Xbox One owners would use Kinect to turn on their consoles with their voice, then play games using the motion camera.

In reality, it just meant that Microsoft’s console was more expensive than Sony’s $400 PlayStation 4 – a console which launched at almost exactly the same time in November 2013.

Microsoft hastily beat a retreat on pricing, and officially turned Kinect into an optional add-on less than a year later. „There’s a lot about Kinect that I really love,“ Spencer said in a video released alongside the news. „We’ve also heard from people that they just like to play games with a controller in their hand.“

But the damage was already done: Microsoft’s Xbox One sales numbers trailed Sony’s PlayStation 4 sales numbers for the entirety of the current console generation. Sony says that it has sold over 100 million PlayStation 4 consoles at last count. Meanwhile, Microsoft stopped reporting sales numbers outright – though in January 2019, an analyst pegged Xbox One sales at 41 million.

Foto: Microsoft’s next-gen console, the Xbox Series X.sourceMicrosoft

X-factor

With both the PlayStation 5 and Xbox Series X, pricing remains a major unknown.

One thing is clear from what we know so far: Both the new consoles are unlikely to cost below $400 based solely on what we know about the components inside.

„I previously estimated the build cost of [Xbox] Series X would be higher at over $460 minimum, and still expect that to be the case,“ Niko Partners video game industry analyst Daniel Ahmad said last week in a series of tweets.

In short, that means the price of components and manufacturing the next Xbox could be as much as $460. And if that’s the cost of creating each box, it stands to reason that Microsoft would price the console higher than the cost of production.

„A $450 build cost would probably result in a retail price close to $500,“ Ahmad said. „I think at this point it’s unrealistic to assume we’ll get a high end console at $399 like last gen.“

There’s one caveat, of course: Both Microsoft and Sony could be willing to take a loss on each console sold, at least initially, in order to establish a foothold with early adopters. In theory, if they went this route, the blow would be at least softened by the manufacturers‘ cut of game sales, microtransactions, and premium services like Xbox Live and PlayStation Plus.

„Both manufacturers could be willing to take a loss day one to price more competitively,“ Ahmad said.

For now, however, we’ll have to wait and see as neither Sony nor Microsoft is saying how much their new game consoles will cost.

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United Airlines will offer free internet on flights using service from Elon Musk’s SpaceX

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CHICAGO (AP) — United Airlines has struck a deal with Elon Musk’s SpaceX to offer satellite-based Starlink WiFi service on flights within the next several years.

The airline said Friday the service will be free to passengers.

United said it will begin testing the service early next year and begin offering it on some flights by later in 2025.

Financial details of the deal were not disclosed.

The announcement comes as airlines rush to offer more amenities as a way to stand out when passengers pick a carrier for a trip. United’s goal is to make sitting on a plane pretty much like being on the ground when it comes to browsing the internet, streaming entertainment and playing games.

“Everything you can do on the ground, you’ll soon be able to do on board a United plane at 35,000 feet, just about anywhere in the world,” CEO Scott Kirby said in announcing the deal.

The airline says Starlink will allow passengers to get internet access even over oceans and polar regions where traditional cell or Wi-Fi signals may be weak or missing.

The Canadian Press. All rights reserved.

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How to Preorder the PlayStation 5 Pro in Canada

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Sony has made it easy for Canadian consumers to preorder the PlayStation 5 Pro in Canada directly from PlayStation’s official website. Here’s how:

  • Visit the Official Website: Go to direct.playstation.com and navigate to the PS5 Pro section once preorders go live on September 26, 2024.
  • Create or Log in to Your PlayStation Account: If you don’t have a PlayStation account, you will need to create one. Existing users can simply log in to proceed.
  • Place Your Preorder: Once logged in, follow the instructions to preorder your PS5 Pro. Ensure you have a valid payment method ready and double-check your shipping information for accuracy.

Preorder Through Major Canadian Retailers

While preordering directly from PlayStation is a popular option, you can also secure your PS5 Pro through trusted Canadian retailers. These retailers are expected to offer preorders on or after September 26:

  • Best Buy Canada
  • Walmart Canada
  • EB Games (GameStop)
  • Amazon Canada
  • The Source

Steps to Preorder via Canadian Retailers:

  • Visit Retailer Websites: Search for “PlayStation 5 Pro” on the website of your preferred retailer starting on September 26.
  • Create or Log in to Your Account: If you’re shopping online, having an account with the retailer can speed up the preorder process.
  • Preorder in Store: For those who prefer in-person shopping, check with local stores regarding availability and preorder policies.

3. Sign Up for Notifications

Many retailers and websites offer the option to sign up for notifications when the preorder goes live. If you’re worried about missing out due to high demand, this can be a useful option.

  • Visit Retailer Sites: Look for a “Notify Me” or “Email Alerts” option and enter your email to stay informed.
  • Use PlayStation Alerts: Sign up for notifications directly through Sony to be one of the first to know when preorders are available.

4. Prepare for High Demand

Preordering the PS5 Pro is expected to be competitive, with high demand likely to result in quick sellouts, just as with the initial release of the original PS5. To maximize your chances of securing a preorder:

  • Act Quickly: Be prepared to place your order as soon as preorders open. Timing is key, as stock can run out within minutes.
  • Double-Check Payment Information: Ensure your credit card or payment method is ready to go. Any delays during the checkout process could result in losing your spot.
  • Stay Informed: Monitor PlayStation and retailer websites for updates on restocks or additional preorder windows.

Final Thoughts

The PlayStation 5 Pro is set to take gaming to the next level with its enhanced performance, graphics, and new features. Canadian gamers should be ready to act fast when preorders open on September 26, 2024, to secure their console ahead of the holiday season. Whether you choose to preorder through PlayStation’s official website or your preferred retailer, following the steps outlined above will help ensure a smooth and successful preorder experience.

For more details on the PS5 Pro and to preorder, visit direct.playstation.com or stay tuned to updates from major Canadian retailers.

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Introducing the PlayStation 5 Pro: The Next Evolution in Gaming

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Since the PlayStation 5 (PS5) launched four years ago, PlayStation has continuously evolved to meet the demands of its players. Today, we are excited to announce the next step in this journey: the PlayStation 5 Pro. Designed for the most dedicated players and game creators, the PS5 Pro brings groundbreaking advancements in gaming hardware, raising the bar for what’s possible.

Key Features of the PS5 Pro

The PS5 Pro comes equipped with several key performance enhancements, addressing the requests of gamers for smoother, higher-quality graphics at a consistent 60 frames per second (FPS). The console’s standout features include:

  • Upgraded GPU: The PS5 Pro’s GPU boasts 67% more Compute Units than the current PS5, combined with 28% faster memory. This allows for up to 45% faster rendering speeds, ensuring a smoother gaming experience.
  • Advanced Ray Tracing: Ray tracing capabilities have been significantly enhanced, with reflections and refractions of light being processed at double or triple the speed of the current PS5, creating more dynamic visuals.
  • AI-Driven Upscaling: Introducing PlayStation Spectral Super Resolution, an AI-based upscaling technology that adds extraordinary detail to images, resulting in sharper image clarity.
  • Backward Compatibility & Game Boost: More than 8,500 PS4 games playable on PS5 Pro will benefit from PS5 Pro Game Boost, stabilizing or enhancing performance. PS4 games will also see improved resolution on select titles.
  • VRR & 8K Support: The PS5 Pro supports Variable Refresh Rate (VRR) and 8K gaming for the ultimate visual experience, while also launching with the latest wireless technology, Wi-Fi 7, in supported regions.

Optimized Games & Patches

Game creators have quickly embraced the new technology that comes with the PS5 Pro. Many games will receive free updates to take full advantage of the console’s new features, labeled as PS5 Pro Enhanced. Some of the highly anticipated titles include:

  • Alan Wake 2
  • Assassin’s Creed: Shadows
  • Demon’s Souls
  • Dragon’s Dogma 2
  • Final Fantasy 7 Rebirth
  • Gran Turismo 7
  • Marvel’s Spider-Man 2
  • Ratchet & Clank: Rift Apart
  • Horizon Forbidden West

These updates will allow players to experience their favorite games at a higher fidelity, taking full advantage of the console’s improved graphics and performance.

 

 

Design & Compatibility

Maintaining consistency within the PS5 family, the PS5 Pro retains the same height and width as the original PS5 model. Players will also have the option to add an Ultra HD Blu-ray Disc Drive or swap console covers when available.

Additionally, the PS5 Pro is fully compatible with all existing PS5 accessories, including the PlayStation VR2, DualSense Edge, Pulse Elite, and Access controller. This ensures seamless integration into your current gaming setup.

Pricing & Availability

The PS5 Pro will be available starting November 7, 2024, at a manufacturer’s suggested retail price (MSRP) of:

  • $699.99 USD
  • $949.99 CAD
  • £699.99 GBP
  • €799.99 EUR
  • ¥119,980 JPY

Each PS5 Pro comes with a 2TB SSD, a DualSense wireless controller, and a copy of Astro’s Playroom pre-installed. Pre-orders begin on September 26, 2024, and the console will be available at participating retailers and directly from PlayStation via direct.playstation.com.

The launch of the PS5 Pro marks a new chapter in PlayStation’s commitment to delivering cutting-edge gaming experiences. Whether players choose the standard PS5 or the PS5 Pro, PlayStation aims to provide the best possible gaming experience for everyone.

Preorder your PS5 Pro and step into the next generation of gaming this holiday season.

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