Why are consoles way cheaper than a Gaming PC with the same performance?



Why are consoles way cheaper than a Gaming PC with the same performance?

In: Technology

Consoles aren’t sold with high profit margins. The manufacturers make their money across the whole ecosystem of the console so it’s in their best interests to make the barrier for entry as low as possible.

They mass produce them using bespoke components on an assembly line. Their build is chosen specifically to achieve low costs at a certain level of performance.

Not only that, often they are loss leaders — the console vendor sells the console at a loss or at cost, intending to recoup the money in sales of games and subscriptions.

1. mass produced in one go. standardization is a big plus
2. sony and microsoft get cash from the developers so they dont make much or even a loss from selling consoles. but they get it afterwards from game sales

(1) They are sold at or below cost since Nintendo/Sony/Microsoft make money on the games

(2) The order huge amounts of the components in bulk from their suppliers so get a good price for those as opposed to EVGA, Asus, GIGA Byte and a bunch of other smaller companies putting in smaller orders

(3) Everything is soldered on to the boards so no need to include things like the casing around the video card or all the connectors.

(4) They are manufactured on highly specific custom assembly lines that are more efficient

(5) The consoles being all custom and the developers knowing exactly the hardware they are developing for means the games are better customized so you can get the same performance from a PS5 as you could from a PC with higher tier gpu and cpus.

They don’t have the same performance. Not remotely. Your PC can Always run better than a console because you can improve hardware. Console hardware is definitely not top of the line in any way.

Consoles don’t have even near as high performances as a decent gaming PC. They are like the minumun version of hardware that is necessary to make for a decent gaming experience. They run their own, proprietary operating system which is optimized to run real-time applications on the hardware.