Quantcast
What's stopping PS4 to be sold for $600 again @ launch?

Forums - Gaming Discussion - What's stopping PS4 to be sold for $600 again @ launch?

Squilliam said:

Sony aren't Apple. They cannot sell $499 or more consumer electronic devices at a rate of more than 10M a year.


does apple actually do that though, casue you cant get a $600 console for $150 with a 2 year internet plan.

 



Around the Network

I think Sony will launch PS4 at about 400-450USD. It'll cost about 600USD to manufacture. Sony seems to like releasing hardware at a loss. Keep in mind Sony's high prices have never translated into high profits, the prices are usually under the cost of production.

I expect Sony to release a really powerful machine much like they did with the PS3, they will probubly use cell technology and other technologies that were developed for the PS3. Upgrading these technologies for the PS4. I suspect PS4 will be 2-3x the power of the PS3 instead of larger digits like PS3 was compared to PS2.

What's keeping Nintendo and Microsoft from releasing a high priced console. Well first off is the higher the price the more you risk. Look at older high priced consoles, The Atari Jaguar or how about 3DO or the CD-i, all were expensive consoles and all failed miserably. Infact I don't think the most expensive console on the market has ever won a generation. Infact other then PS3 not a single most expensive console has even lasted a full generation.

Nintendo is always about profits, they will never release hardware at a loss. According to EAGames and Sega in 2006 the Wii cost about 75USD to manufacture. It launched at 299CAD and I believe 275USD. Thats a 200$ profit on every unit sold. GameCube was also launched at about 50USD profit per unit. The DS, GBA , GameBoy all lacked power in exchange for lower manufacturing costs and higher profit margins. The only way we will see a 600$ Nintendo system is if A.Nintendo controlled about 80% of the market prior (Which will never happen) in other words Nintendo needs to know 110% that they will maintain high market share. B. Nintendo will need to be manufacturing the thing at about 400USD which will translate into a super power since Nintendo knows how to make cheap but reliable hardware. In other words Nintendo would need to be even more confident then when they launched the 64, which is not going to happen.

Microsoft launches at a loss every generation much like Sony. Infact the origional X-Box 360 did retail as high as 600CAD. I bought my Elite for 650CAD at its launch. So that answers your question, considering the Canadian dollar is at par. But I don't think Microsoft will risk such an expensive indevour again, its just not smart they wanted to show the industry they could create a superior product, they proved to gamers they could deliver. Now is not the time to gamble again Microsoft will want to release a console they know will sell. I expect a 400USD console next gen possibly even 300USD.

I think all three competitors will go cheaper next gen, they all saw how much Nintendo made from launching Wii and DS cheaply, they all saw how the two consoles printed money. Both Microsoft and Sony will release cheaper consoles next gen, heck Microsoft and Sony may even for a start launch hardware at a profit or near to cost. I don't think Nintendo will be alone as the cheapest console or at least it will be alot closer then this gen!



-JC7

"In God We Trust - In Games We Play " - Joel Reimer

 

See, this is why I didn't really want the PS3 to do well. It possibly gives Sony carte blanche to release a console at an outragous price like $600. I'm sorry but if you try to bring out a gaming console for $600, you lose, period. I mean it's good that they finally wisened up and dropped it to a more reasonable $300, but the fact is that it still started much higher than it should have.



Me.



hatmoza said:

Direct answer to thread title:

History.


PSP Go

yeah I know low blow...



OoOoOoOoOoOoOoOoOoOoOoOoOoOoOoOoOoOoOoOoOoOoOoO

Around the Network
Joelcool7 said:

I think Sony will launch PS4 at about 400-450USD. It'll cost about 600USD to manufacture. Sony seems to like releasing hardware at a loss. Keep in mind Sony's high prices have never translated into high profits, the prices are usually under the cost of production.

I expect Sony to release a really powerful machine much like they did with the PS3, they will probubly use cell technology and other technologies that were developed for the PS3. Upgrading these technologies for the PS4. I suspect PS4 will be 2-3x the power of the PS3 instead of larger digits like PS3 was compared to PS2.

What's keeping Nintendo and Microsoft from releasing a high priced console. Well first off is the higher the price the more you risk. Look at older high priced consoles, The Atari Jaguar or how about 3DO or the CD-i, all were expensive consoles and all failed miserably. Infact I don't think the most expensive console on the market has ever won a generation. Infact other then PS3 not a single most expensive console has even lasted a full generation.

Nintendo is always about profits, they will never release hardware at a loss. According to EAGames and Sega in 2006 the Wii cost about 75USD to manufacture. It launched at 299CAD and I believe 275USD. Thats a 200$ profit on every unit sold. GameCube was also launched at about 50USD profit per unit. The DS, GBA , GameBoy all lacked power in exchange for lower manufacturing costs and higher profit margins. The only way we will see a 600$ Nintendo system is if A.Nintendo controlled about 80% of the market prior (Which will never happen) in other words Nintendo needs to know 110% that they will maintain high market share. B. Nintendo will need to be manufacturing the thing at about 400USD which will translate into a super power since Nintendo knows how to make cheap but reliable hardware. In other words Nintendo would need to be even more confident then when they launched the 64, which is not going to happen.

Microsoft launches at a loss every generation much like Sony. Infact the origional X-Box 360 did retail as high as 600CAD. I bought my Elite for 650CAD at its launch. So that answers your question, considering the Canadian dollar is at par. But I don't think Microsoft will risk such an expensive indevour again, its just not smart they wanted to show the industry they could create a superior product, they proved to gamers they could deliver. Now is not the time to gamble again Microsoft will want to release a console they know will sell. I expect a 400USD console next gen possibly even 300USD.

I think all three competitors will go cheaper next gen, they all saw how much Nintendo made from launching Wii and DS cheaply, they all saw how the two consoles printed money. Both Microsoft and Sony will release cheaper consoles next gen, heck Microsoft and Sony may even for a start launch hardware at a profit or near to cost. I don't think Nintendo will be alone as the cheapest console or at least it will be alot closer then this gen!

You might have misread your sources, Nintendo had a 75 dollar profit in Japan (No Wii Sports bundle in Japan) and a 30 something dollar profit everywhere else.



Metallicube said:

See, this is why I didn't really want the PS3 to do well. It possibly gives Sony carte blanche to release a console at an outragous price like $600. I'm sorry but if you try to bring out a gaming console for $600, you lose, period. I mean it's good that they finally wisened up and dropped it to a more reasonable $300, but the fact is that it still started much higher than it should have.

considering the cost of manufacturing what do you think would have been a better cost of sell the ps3.

the ps3 costing 600 at launch wasn't Sony being evil money hungry arrogant bastards, it was the most reasonable choice they could see that would allow them to support the console in time for INEVITABLE price cuts that would come later down the line.

Fact: if the ps3 didn't cost so much to make, it would have cost so much at launch, which is exactly why the ps4 won't be 600 dollars, because of the investment on the ps3 hardware, the ps4 will be much cheaper to produce. thus costing less at launch while retaining it's massively powerful nature, and easier to develop for is just icing on the cake.



Hus said:
Squilliam said:

Sony aren't Apple. They cannot sell $499 or more consumer electronic devices at a rate of more than 10M a year.


does apple actually do that though, casue you cant get a $600 console for $150 with a 2 year internet plan.

 

Yeah for sure, iPad which is selling at a rate of something like 1M a month or maybe a little less and isn't subsidised for the most part if at all.



Tease.

Squilliam said:
Hus said:
Squilliam said:

Sony aren't Apple. They cannot sell $499 or more consumer electronic devices at a rate of more than 10M a year.


does apple actually do that though, casue you cant get a $600 console for $150 with a 2 year internet plan.

 

Yeah for sure, iPad which is selling at a rate of something like 1M a month or maybe a little less and isn't subsidised for the most part if at all.

Squilliam from the 0:37 second mark describes your response. Nice follow up post man.



The only reason Sony isn't in a last place hole that is impossible to climb out of (as opposed to the last place hole they might be able to climb out of) is Microsoft's ineptitude.  The RRoD saved Sony.  Without it, MS can not only lower the price much sooner, but present a more reliable product to the consumer, which could have easily moved several million more units, perhaps at Sony's expense in the case of single HD owners.  MS's poor handling of the original XBOX: killing it off early and denying themselves the late life sales that could have introduced many gamers to the XBOX brand cheaply and easily, didn't help either.

Face it, Sony made a huge mistake with their pricing/cost of features.  They won't make that mistake again, as I doubt even Microsoft would be so pathetic as to hand them another RRoD life preserver.