The Sony PlayStation 4, the most recent PlayStation from Sony, had pretty decent reviews. Microsoft’s Xbox One X was the main competitor to the Sony PlayStation 5, where the latest Xbox One X, arguably, nearly destroyed the PS4 with the introduction of varies features by Microsoft. Microsoft developed cloud streaming and a better subscription model, making it one of the user favorites.
The Sony PlayStation 5, which is set to release in November 2020, is one of the most awaited console by the gamers. However, the price range might affect the company’s position in the market. According to Bloomberg’s estimates, the manufacturing costs alone are reported to be $450 – which could end up making the PS5 one of the most expensive gaming consoles.
Previously, the manufacturing cost of the PS4 totaled a bill of $381 and the console was launched at $399. The low cost of the console made it difficult to profit from sales as the cost of marketing and R&D unit costs more than the total profit. Now, there is a rise of 18% with costlier parts on the PS5, and it may end up costing around $500. This is why Microsoft and Google are heavily investing in cloud gaming.
Microsoft recently announced Xbox Game Pass Ultimate that can be subscribed to at $15 dollars per month, while Sony’s similar subscription costs around $10 dollars a month. The Xbox Project xCloud, which is currently on a preview phase, allows users to stream more than 50 Xbox Titles directly on their Android smartphones using an internet connection. Microsoft says that the users can stream with the same quality of the console from the cloud to their smart handheld devices. This allows better, more graphics-intensive games to be added to this platform. The pricing of this service is to be revealed later but predicted to be expensive.
It is a win for Microsoft as the user can stream games without any gaming console. The cloud gaming market is expected to hike at 25% annually through 2025 and Sony still stuck on deciding its PS5 price. Even Google has planned to offer its free version of Stadia Cloud Gaming service, which is currently priced at $129 for a Stadia controller and a Chromecast Ultra. But sooner or later, Google will crack the barrier into cloud gaming.
The big strategic difference is that over the next few months you will be able to experience Stadia for free… No money down, without having to put a box in your home, you can just click and play amazing games straight from our data center.– Phil Harrison, Google Executive
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