- One of the big pieces of news
to come out of the E3 this year
was the Microsoft confirmed
they are working on the next Xbox.
Still under the title of Project Scarlett,
and will release sometime late 2020.
Now we didn't get any in
depth specs or anything,
we don't know what's gonna be
inside the system for sure,
but they did talk numbers
in terms of what it's
going to be capable of.
And those numbers sound pretty familiar.
A few months prior to E3,
PlayStation's Mark Cerny
did an interview with Wired
regarding what the PlayStation
Five is gonna be capable of,
and the numbers are
pretty much the same thing
that Microsoft announced.
We're looking at systems
that are gonna be
capable of 8K resolution,
120 frames per second, and
one specific piece of tech
they referenced a lot is the fact
that both systems are going be
the first home consoles to
start making use of SSD's
which will dramatically
improve load times.
And that's basically all we really know
about these two systems so far.
We don't know the specific
cards that are gonna be in them,
although we know which companies
they are partnered with.
We don't know the processor, how much RAM,
we just know, hey there's an SSD,
and it's capable of 8K, 120 frames.
So with that in mind,
it's kinda raising the question of,
how much are these systems gonna cost?
Performance numbers are
cool and exciting and all,
but at the end of the day,
cost is a very important
figure to talk about.
Because that's gonna be the number
that helps a lot of people decide,
which of these two systems to get,
or whether or not they're
even going to adopt
the new generation of
systems right away or not.
So, hearing big numbers is cool,
but it also gives you the thought of well,
really how much is this gonna be?
Because big numbers can be very dangerous.
I mean, good examples of this are
way back with the PS3, when that launched.
How much it was running for
turned a lot of people
off compared to the 360.
And the Xbox One had a lot of problems
because it was a forced bundle
with the Kinect at first
which drove the cost even higher.
So with those performance numbers in mind,
let's take a look at the actual tech
and how much it costs to
make a machine like this.
Now again, we do not know specific specs
of what's going to be in these systems,
but we could make some educated guesses
based on the performance
that's been talked about,
as well as just little bits from articles
including that Cerny interview.
So to begin with, let's take
a look at the processor.
When talking to Wired, Cerny
mentioned that specifically
they'll be using AMD's
new Zen 2 architecture,
which makes sense, AMD
has been the main partner
for both PlayStation and Microsoft.
And specifically, he mentioned making use
of an eight core processor.
Now those chips aren't actually out yet,
but we do have MSRPs for
when they'll be releasing,
so as a similar example at eight cores,
there's the Ryzen seven 300 X,
which is priced at $399 dollars.
We are already down the cost of a PS4 Pro.
Now as for the GPU,
again we know they're working with AMD,
they've talked about 8K resolutions,
and that it's going to have rate tracing.
The thing about that,
is we don't actually have
any AMD cards priced out yet
that have rate tracing,
they're just not out yet.
So the closest equivalent
we have at the moment
is the RX 5700 which
goes for $379 dollars.
Now if we wanna talk about
the idea of rate tracing,
if that makes things cost more,
well an equivalent card
from NVIDIA goes for 350
that has rate tracing.
That's the RTX 2060.
So price range is about the same,
we're gonna stick with that 379 figure
just as an example for now.
One part of the system we do know
at least a little more about
is that it's going to include an SSD.
Now according to Cerny,
once again as a source,
he's mentioning the fact that the SSD's
they're putting in the PS5
is faster than anything currently
available on the market.
So the closest guess
we can have right now,
let's say they go for a launch bundle
that has a 1 terabyte hard drive,
well the fastest SSD you can get right now
with that kind of size
is gonna cost 355,
again, almost as much as a PS4 Pro.
One last part I wanna touch on is the RAM.
Now no one has said anything
about how much RAM they're
gonna put in the systems,
but based on the kind of
performance they're talking about,
and what we see in current systems,
we're likely gonna see 16 gigabytes,
which is another, you
guessed it, $400 dollars.
So the four parts we've talked about alone
all roughly cost the same as a PS4 Pro.
That means the PS5 is four PS4 Pros worth.
That's a lot of money.
Now to be fair, the amount
it costs Microsoft or Sony
to build a new system,
is not the same as it takes you
to build one individually for yourself,
because, well what's costing
them is very different.
Yes they're buying parts,
but they're buying them in massive bulk
which brings down the
individual price of each one.
Really, where the cost is coming from
is the development, putting the
whole thing together, labor.
All the stuff that goes into just
making that system
happen in the first place
and get production going.
All that considered though,
even if the cost of producing
an individual system
is less that it would
cost you to build one,
it's still more than what
they usually sell for.
It's this kind of tradition
in video game business
that consoles are sold at a loss,
or at a very very minimum profit.
And the reason for this
is that they wanna make systems
as affordable as possible
so that way once people buy them,
they start buying all the other
stuff related to the system,
and that's really where
the big profit comes from.
Whether that's all the games you buy,
they're licensed out by that company
that they get a share of the sales.
Buying additional controllers,
buying accessories,
buying branded stuff that's
based on the systems.
All that stuff comes together
to yield a lot more profit
to balance out the cost of
selling those systems at a loss.
The point of this is that game consoles
are worth more than a
lot of people realize.
Especially when they are first coming out
in this brand new tech.
And that's always been
I think one of the big
strengths that consoles have
in that argument of well
should you buy a game console
or own a gaming PC?
Because in the console market,
it's not only a very
user friendly experience
where you just buy it, plug it in your TV,
and do initial setup and
you should be good to go,
but you're also getting all of that
at a overall much better value
than if you tried building
something yourself.
Now it's something that
you're not gonna be able
to upgrade as often,
it's not something that's
going to keep up with it,
but that's the whole way
that the console generation cycles work.
Every few years they release a new one
and that's a new spike
of where we're gonna see that shift
in what games can do.
So how much are the PS5 and
Xbox Scarlett gonna cost?
I honestly don't know.
Four, five, maybe six.
At the end of the day though,
I think it's gonna be worth it.
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