drkohler said:
At $199, no current gen console is profitable on the hardware level. Like last year, Sony limits the number of units available at this price simply in order to limit the losses on hardware. The idea that "selling more units even at a loss is good because software" isn't really an argument anymore at this stage of the console cycle. |
There is absolutely no way the PS4 still costs $249+ to manufacture. In mid-2017 Sony said the primary reason for their large increase in their gaming division's operating income was due to lower manufacturing costs, with SW sales being the secondary reason. MS has been selling the XBO for effectively $199 for most of the year, $220-$240 with a game or two. MS knows it lost already, there's no way they are going to continue to lose money on the systems, since it doesn't make a difference. And Sony has been doing the $199 deal for 3 years. First year, it was the system by itself. Second year, it was with Spider-Man. This year, they bundled 3 games with it. Obviously, the price to make the console has dropped. At the very worst, they are breaking even, but I don't believe that to be the case.
The reason Sony is selling the PS4 for $299 isn't because they'll lose money if they drop the price. It's because they can sell it for that price and it still sells well. Just like Nintendo could drop the price of the Switch to $249 and still profit, but don't need to, yet. Sony is trying to build up profit, because they are more than likely going to be heavily subsidizing the price of the PS5.
