PS4 Manufacturing Costs "Much Smaller" Than PS3

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PS4 Manufacturing Costs "Much Smaller" Than PS3

PlayStation 4 and controller

Sony Computer Entertainment CEO Andrew House recently told investors the PS4 "will not generate" the same losses as the PS3.

Arguably the PS3's biggest obstacle to success has been its price. At launch it was so expensive that many couldn't afford to buy it. Even just making the console however, was a costly process. For years Sony was taking a loss on every PS3 it sold. Commenting on the manufacturing expenses of the PlayStation 4, Sony Computer Entertainment CEO Andrew House reassured investors that those kinds of losses will soon be a thing of the past. "We will not generate anything like the losses we did for the PlayStation 3," he said. Sony CFO Masaru Kato likewise affirmed that the expenses of the company's new console were "much much smaller." The reduction in cost comes primarily from its more standard components and PC-like architecture, facets that should help Sony evade the manufacturing burdens of the PS3, which used the custom Cell processor.

Obviously it's hard to argue with lower production costs. That being said, some have noted that Sony's use of more standard parts for the PlayStation 4 have left it with more than a few technical similarities to its competitor, the Xbox One. Granted, a bit of console homogeneity is probably preferable to losing oodles of money on every unit you sell. That said, Sony's probably going to have expand its future marketing beyond the "PS4 does what Xbox One don't" messaging that was at the centerpiece of the company's E3 assault. With specs similar and Microsoft ditching many of the Xbox One's more restrictive DRM, it's a sail not likely to catch as much wind in the future.

Source: GamesIndustry

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50% more graphic power would be a good selling point as well as the simpler memory architecture.

If the Xbone eclipses the PS4 in the US, after all the BS Microsoft tried to pull, my faith in humanity would drop to a new low.

I think I made this point after the PS4 was announced.

deadish:
50% more graphic power would be a good selling point as well as the simpler
memory architecture.

If the Xbone eclipses the PS4 in the US, after all the BS Microsoft tried to pull, my faith in humanity would drop to a new low.

It's pretty clear that the PS4 will win the console war. It's going to be available in more countries, it's cheaper and smaller. It's already dominating pre-orders. As much as people on the internet like to swear allegiance to one corporation or the other, in the end most people will simply buy the cheaper system or the system that most of their friends have. And that depends mostly on early adopters. Microsoft will have to pull some incredible marketing stunts to beat Sony. And so far that doesn't seem likely. It's as if Microsfot's PR team is run by retarded beavers.

I think a lot of people are already sold on the PS4 as the go to console over the Xbox One. It's more of an issue of when to buy the console as the last three console releases didn't have good enough game libraries to justify being an early adopter. The 3ds had a price slash of $100 and Nintendo gave out the ambassador rewards program to early adopters, followed by releasing a revamped console that is actually usable for extended periods (which begs the question as to why they even bother continuing to make the original 3ds with the 3ds XL being better in every way). The Vita released and had probably one or two games worth owning for a significant amount of time, and is only just now starting to get a fleshed out library.

The Wii U, well, given the coverage on the site is probably pretty self explanatory. The only two things I ever hear involving that console is Zombie U and Pickmin 4. That is, unless people are into the Nth entry of the Mario Brothers games and Mario Kart. At least they got some good RPGs in the backlog and a good one coming up.

Adam Jensen:
It's pretty clear that the PS4 will win the console war. It's going to be available in more countries, it's cheaper and smaller. It's already dominating pre-orders. As much as people on the internet like to swear allegiance to one corporation or the other, in the end most people will simply buy the cheaper system or the system that most of their friends have. And that depends mostly on early adopters. Microsoft will have to pull some incredible marketing stunts to beat Sony. And so far that doesn't seem likely. It's as if Microsfot's PR team is run by retarded beavers.

I don't think we can call that just yet. You never know how audiences are going to react to something once it's out. For all we know everyone will suffer from console fatigue come the holidays and none of the systems will sell.

Anyway, I'm glad to see Sony got its shit somewhat together with the architechture of the next Playstation. They were really being to be a bit too cute with the PS3, and it burned a fucking hole in their hand.

Colt47:
I think a lot of people are already sold on the PS4 as the go to console over the Xbox One. It's more of an issue of when to buy the console as the last three console releases didn't have good enough game libraries to justify being an early adopter.

Well, they will be releasing spankier versions of Metal Gear Solid 5 and Assassin's Creed 4 for the next gen systems. It's not a bad idea to include games that have benefited from the 7 year experience of the last generation over to the new one to hold us over.

I know I'll be wanting to play MGS5 on the PS4.

Casual Shinji:

Colt47:
I think a lot of people are already sold on the PS4 as the go to console over the Xbox One. It's more of an issue of when to buy the console as the last three console releases didn't have good enough game libraries to justify being an early adopter.

Well, they will be releasing spankier versions of Metal Gear Solid 5 and Assassin's Creed 4 for the next gen systems. It's not a bad idea to include games that have benefited from the 7 year experience of the last generation over to the new one to hold us over.

I know I'll be wanting to play MGS5 on the PS4.

Yeah, so far it looks better than the last three system launches. The one advantage the PS4 has this time around is that it isn't using alien architecture like the PS3 was, so games shouldn't be plagued by as many performance issues and the over all quality of the launch line up will be higher.

On a side note, I think the problem faced by the Vita is that they are trying to release games that are based on home console franchises, and give off the impression they are cheap imitations of the console releases. Nintendo gets around this by releasing unique titles for the hand held. So far the Vita has probably only had one truly unique game for the system (Gravity Rush), and everything else being multi-platform or derivative of a console release.

In terms of cheaper cost, of course it's going to be - Sony's using the typical PC x86 architecture instead of a custom architecture made from scratch; custom architectures was part of the reason why a few consoles in the 90s were expensive, and eventually led to their failure.

I'm alright with that, less money spent, more money earned. Ergo less studios closed, more studios given better salaries, or price cuts. Profit is a good thing for a business to do, it's the nature of capitalism muthhubbers.

Adam Jensen:
And so far that doesn't seem likely. It's as if Microsfot's PR team is run by retarded beavers.

Idont know, I would say their pretty smart beavers... but who ever at Microsoft thought hiring beavers for their PR department might be a bit of a moron...

About the "similarities" between the XBOne and the Playstation 4:
They go as far as the hardware, and stop dead right there. The software running on top of this hardware is, as far as I know, very different.
1. OS: The PS3 used a BSD-based Unix system, it's expected that the PS4 will have something similar, maybe based on Linux though. The XBOne uses Windows 8. You've got two very different application executable formats right there... and two very different APIs to program for.
2. Graphics API: The (Direct)XBox One uses Direct3D11, a component of DirectX 11. On the Playstation front, a modified version of OpenGL seems to be something to expect.

Porting from the PS4 to Linux (Kubuntu) should be very easy, while porting to Windows is still very much possible (keeping in mind that Windows also supports OpenGL, even if it performs badly on NVidia GFX cards).
Porting from the XBOne to Windows will probably be easy, but porting to any other system and omitting the shitty GFWL service (that - surprise! - doesn't even work in most countries) would be very difficult, especially if the source code isn't modified accordingly.

deadish:
50% more graphic power would be a good selling point as well as the simpler memory architecture.

If the Xbone eclipses the PS4 in the US, after all the BS Microsoft tried to pull, my faith in humanity would drop to a new low.

Wait, you would lose your faith in humanity if people decide to pick one gaming entertainment system over another? Comments like this is what makes me lose faith in humanity.

Adam Jensen:
It's pretty clear that the PS4 will win the console war.

They're well in front at this stage, but until I see the CEO of Microsoft sign a letter of surrender on the steps of the capital, I won't count the cunning bastards out yet.

Adam Jensen:
It's as if Microsfot's PR team is run by retarded beavers.

Considering most beavers are clever enough to build dams (designed to stem unwanted flow); I think this comment is both inaccurate and grossly unfair to the beaver.

Adam Jensen:
And so far that doesn't seem likely. It's as if Microsoft's PR team is run by retarded beavers.

WanderingFool:
I don't know, I would say their pretty smart beavers... but who ever at Microsoft thought hiring beavers for their PR department might be a bit of a moron...

Well if their recent backpedaling proved anything, it's that they're damned if they do damned if they don't.

When it comes to the U.S., I don't think that the Xbox One is going to be very far behind; for one, the U.S. is the console's strongest market, and there are still plenty of people who will buy it just because it's an Xbox, they're Halo fans, they want the early CoD DLC, 'Down With Playstation' sentimentality, etc, etc, etc. Indeed, if rumors that Microsoft's in a more secure place with regards to cranking out more units of consoles, the numbers might balance out by sheer virtue of people not wanting to wait however long for the PS4 to get back in stock. Price can sway the average consumer, but so can utter impatience.

That being said, their position in the U.S. isn't likely to be nearly as dominant as the 360's was, as even reaching sales parity looks like it might be a battle for them. In terms of overall global sales and control of the market, the Xbox One is probably going to lag much further behind. It simply doesn't have the same appeal outside the United States, and even the pre-orders in the U.K., which have been very strong in terms of Xbox-owning gamers, look to have largely jumped ship, as it were. (Granted, I'm basing that mostly off of Amazon sales, but that's just because it's the only real scrap of comparative pre-order listings I can find, any other contradicting or supporting figures are welcome to the party.)

Finally, there are numerous advantages that the Xbox 360 had in this console generation that the Xbox One simply won't in the next.

Sony have said and are well aware that they need to keep stock coming in through out xmas. They know if the fail to get everyone who wants a ps4 one pre mid december they'll loose customers. I read a little on this in the newest mcv uk to give a sorce. They're just running low on time with the made amount of demand.

That sounds like a good thing. From what I've seen, Sony is really serious about correcting it's previous mistakes. I enjoy/enjoyed the PS3, but I would be lying if I said it wasn't flawed.

Biggest problem is that they lost a few of their classic exclusives, which is annoying. Still have some great ones, though. Now, just announce a release date and take my money, guys. Preferably a slightly early one.

WanderingFool:

Adam Jensen:
And so far that doesn't seem likely. It's as if Microsfot's PR team is run by retarded beavers.

Idont know, I would say their pretty smart beavers... but who ever at Microsoft thought hiring beavers for their PR department might be a bit of a moron...

I laughed way too hard at this comment.

When the PS4 and XB1 come out Wii U will have a good amount of quality games, while the others won't. Hence these releases just will promote the Wii U as a good console to own.

Xbox will sell well in the US pretty well, PS4 will be selling like hot cakes in Japan(they've got to have an exclusive launch killer app in mind for that audience particularly), but afterwards they'll be in the same state as the Wii U now for the next year, or two.

CoD: World at War was still released for PS2 in 2008 so I don't know when the major transition to the 8-th generation will take place.

"Much smaller?"
You tell him, Payne!

Does that mean we'll see a price cut any time soon? I'm not buying a launch day console because it's too expensive and you never know what kind of fiasco could happen (RRoD, anyone?), but I'm willing to wait it out. Lower production could mean Sony might drop the price sooner.

If they drop the price before Microsoft even has a chance to know what hit them, they could really take a lead in the industry.

darthzew:
Does that mean we'll see a price cut any time soon? I'm not buying a launch day console because it's too expensive and you never know what kind of fiasco could happen (RRoD, anyone?), but I'm willing to wait it out. Lower production could mean Sony might drop the price sooner.

If they drop the price before Microsoft even has a chance to know what hit them, they could really take a lead in the industry.

I suppose it depends on your definition of soon. Even saying a price drop could occur within one year might be optimistic, because whether or not a price drop happens won't solely be because of production costs, but will largely come down to demand. If the console is meeting or exceeding Sony's expectations in terms of demand, then the price is likely To remain the same, because the market is suggesting that it can take the price. If however, during the first year, their overall sales are below their expectations, you might see a price drop. Considering the head start they seem to have, current signs point to not expecting price drop until year two or so.

StewShearer:
That said, Sony's probably going to have expand its future marketing beyond the "PS4 does what Xbox One don't" messaging that was at the centerpiece of the company's E3 assault.

Source: GamesIndustry

Actually, Sony probably should go with such a strategy because of its plans for the PS4. By next E3, the PS4 will most likely have Gaikai streaming of PS3 games (a big draw for me) and user-generated video production via PS4 for videos up to 15 minutes long. Now, I doubt Sony can directly reference the XbOne's shortcomings in these fields (no backwards compatibility of any kind and video production of up to 5-minute-long videos), but just explaining how they work as implemented would put the PS4 in a shining light.

T3hSource:
CoD: World at War was still released for PS2 in 2008 so I don't know when the major transition to the 8-th generation will take place.

It was and it wasn't, the WaW on PS2 was the same game in name only, the actual campaign was entirely different. Which is where this gen could get interesting, we already see this to an extent with things like Battlefield fielding smaller maps, will the next gen games like Titanfall be similarly cut down to work in the current gen's limited RAM? Probably.

darthzew:
Does that mean we'll see a price cut any time soon? I'm not buying a launch day console because it's too expensive and you never know what kind of fiasco could happen (RRoD, anyone?), but I'm willing to wait it out. Lower production could mean Sony might drop the price sooner.

Historically Sony have made a price cut nine months to a year after release on their console, they held out for almost two on the PS2 because it sold so rapidly (30million units/ 125k units a month for two years at full price!). For everything else it's come sooner. I don't see the PS4 making those crushing numbers in it's release year as it's $100 more than the PS2 was and the market is more saturated now.

Of course if the Xbone bombs as badly as some are predicting price cuts could come as soon as the first quarter of 2014 as Microsoft tries to jump start the hardware and Sony looks to maintain it's price advantage.

Adam Jensen:
It's as if Microsfot's PR team is run by retarded beavers.

You, sir have coined my phrase for the week. *Slow clap*

image

Adam Jensen:
I think I made this point after the PS4 was announced.

deadish:
50% more graphic power would be a good selling point as well as the simpler
memory architecture.

If the Xbone eclipses the PS4 in the US, after all the BS Microsoft tried to pull, my faith in humanity would drop to a new low.

It's pretty clear that the PS4 will win the console war. It's going to be available in more countries, it's cheaper and smaller. It's already dominating pre-orders. As much as people on the internet like to swear allegiance to one corporation or the other, in the end most people will simply buy the cheaper system or the system that most of their friends have. And that depends mostly on early adopters. Microsoft will have to pull some incredible marketing stunts to beat Sony. And so far that doesn't seem likely. It's as if Microsfot's PR team is run by retarded beavers.

The people who swear allegiance to one company are not the same people who would just buy the cheapest console or the ones their friends have. The people who are into games enough to care about one company more than the others will likely be the same people who buy all three consoles before the generation ends.

Xbox marketing team: If you are concerned about your privacy with the Kinect sensor, it is still very easy to construct a dam around it. This also doubles as a shelter and protects your Xbox from predators.

Adam Jensen:
I think I made this point after the PS4 was announced.

deadish:
50% more graphic power would be a good selling point as well as the simpler
memory architecture.

If the Xbone eclipses the PS4 in the US, after all the BS Microsoft tried to pull, my faith in humanity would drop to a new low.

It's pretty clear that the PS4 will win the console war. It's going to be available in more countries, it's cheaper and smaller. It's already dominating pre-orders. As much as people on the internet like to swear allegiance to one corporation or the other, in the end most people will simply buy the cheaper system or the system that most of their friends have. And that depends mostly on early adopters. Microsoft will have to pull some incredible marketing stunts to beat Sony. And so far that doesn't seem likely. It's as if Microsfot's PR team is run by retarded beavers.

It will also automatically get the military end of things as the mandatory Kinect means that the XBone will not be allowed on any US military base outside the US or in any remotely sensitive installation.

Gordon_4:

Adam Jensen:
It's as if Microsfot's PR team is run by retarded beavers.

Considering most beavers are clever enough to build dams (designed to stem unwanted flow); I think this comment is both inaccurate and grossly unfair to the beaver.

Retarded beavers. As in the kind of beavers who would attempt to construct a dam in the middle of a goat trail 200 yards away from any source of water.

ravenshrike:

Gordon_4:

Adam Jensen:
It's as if Microsfot's PR team is run by retarded beavers.

Considering most beavers are clever enough to build dams (designed to stem unwanted flow); I think this comment is both inaccurate and grossly unfair to the beaver.

Retarded beavers. As in the kind of beavers who would attempt to construct a dam in the middle of a goat trail 200 yards away from any source of water.

they're run by investor pandering chumps, the theory being money grubbing anti-consumerist behaviour 'bad-news' for customers = good news for investors ( because they get the grubbed money! )

unfortunately they went so far with it, that it bit them in the ass. ( good thing too, cause gamers are already the industry's c*^"k wh^£%" and buy up any rotten code they can find! )

#EDIT; fixed quotations.

StewShearer:
That said, Sony's probably going to have expand its future marketing beyond the "PS4 does what Xbox One don't" messaging that was at the centerpiece of the company's E3 assault. With specs similar and Microsoft ditching many of the Xbox One's more restrictive DRM, it's a sail not likely to catch as much wind in the future.

That position was exactly what Sony needed to convey. Exactly. Not sure how they could have done it any better.

It does what a console should do. I'm not sure what else a console can claim to do other than not be restrictive and to come up with a decent lineup of exclusives. A console's job is to be a platter on which desirable things may be appropriately displayed for consumption.

Since both products are generally competing along the market differentiation of quality (as opposed to price differentiation), all they can do is compare what one can do to what the other can't. By all means, if you can think of a marketing strategy that does better then please go into Marketing.

Spec similarities to PCs and the Xbox One is not a bad thing.

Well, maybe that's because at the time of its launch, the PS3 was using premium, custom-hardware that outmatched most PCs. Of course it cost a lot to make. Now, the PS4 is using components that have already been eclipsed by even entry-level PC hardware; old components tend to not cost much. Why is this news...

clippen05:
Well, maybe that's because at the time of its launch, the PS3 was using premium, custom-hardware that outmatched most PCs. Of course it cost a lot to make. Now, the PS4 is using components that have already been eclipsed by even entry-level PC hardware; old components tend to not cost much. Why is this news...

Because making money on the hardware at launch isn't the most common occurrence. And the xbone likely isn't due to the sensor bar albatross draped across its neck.

I agree the consoles are very similar, especially post Xbox 180. But almost every category they are similar the PS4 comes out as the slight winner, and in the big difference: price...PS4 come out huge.

Here's some other examples: PS4 doesn't require an adapter to use old headsets/ XB1 does.

PS+ $50/yr and isn't needed for Auto Update, Netflix, Skype, PS Share function etc/ XB Live $60/yr required to use anything online related.

PS4 doesn't require a camera peripheral to be always on and monitoring the living room/ XB1 does.

PS3 had better quantity and quality of exclusive games and 1st party devs over Xbox 360...That'll most def continue.

Both have cloud plans/ XB1 does have the upper hand in this though being available at launch.

Colt47:

Casual Shinji:

Colt47:
I think a lot of people are already sold on the PS4 as the go to console over the Xbox One. It's more of an issue of when to buy the console as the last three console releases didn't have good enough game libraries to justify being an early adopter.

Well, they will be releasing spankier versions of Metal Gear Solid 5 and Assassin's Creed 4 for the next gen systems. It's not a bad idea to include games that have benefited from the 7 year experience of the last generation over to the new one to hold us over.

I know I'll be wanting to play MGS5 on the PS4.

Yeah, so far it looks better than the last three system launches. The one advantage the PS4 has this time around is that it isn't using alien architecture like the PS3 was, so games shouldn't be plagued by as many performance issues and the over all quality of the launch line up will be higher.

On a side note, I think the problem faced by the Vita is that they are trying to release games that are based on home console franchises, and give off the impression they are cheap imitations of the console releases. Nintendo gets around this by releasing unique titles for the hand held. So far the Vita has probably only had one truly unique game for the system (Gravity Rush), and everything else being multi-platform or derivative of a console release.

Honestly I don't think the mobile console is an issue as much as it having few well known games on it. This is being fixed eventually though. It's always been fun playing PS1 games on PSP and the Vita will continue that with some extra games added on, which is really all I'm after myself.

As for the PS4, glad to see Sony has hired some intelligent managers that have both made a system that offers useful and interesting features for gamers (even if not everyone will use all features) and keeping it within budget and a good price while offering good hardware (yes yes I know it's not a top of the line PC but frankly consoles never have and never will be, that's not the market they aim for).

Wait, comments on an entertainment website forum cause you to lose your faith in humanity?

TomWiley:

deadish:
50% more graphic power would be a good selling point as well as the simpler memory architecture.

If the Xbone eclipses the PS4 in the US, after all the BS Microsoft tried to pull, my faith in humanity would drop to a new low.

Wait, you would lose your faith in humanity if people decide to pick one gaming entertainment system over another? Comments like this is what makes me lose faith in humanity.

Wait, you would lose your faith in humanity because of a comment in an entertainment website forum?

Me, too!

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