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Forums - Sony Discussion - Please Explain the Value Sony Gets from Bundles VS. Lowering the Price of the Console

superchunk on 29 November 2012
butcherknife said:

But Choice 2 is limiting, inst it? Since only a subset of the consumers that actually want a PS VIta want those specific pack-ins. I guess that is why Sony is offereing so many different bundles...an effort to try to cover everyone?

Sure, but they try to pick games with mass appeal (hence nintendo uses Mario most commonly). Problem is Sony doesn't have that for "mass appeal". This is why MSony make multiple bundles with various games like COD, Halo, Uncharted, Gears, AssCreed, LBP, FIFA, etc... whereas Nintendo generally only does one.



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butcherknife on 29 November 2012
superchunk said:
To illustrate further.

Let's pretend the $250 PS3 has a $80 margin of profit. If you take $100 off the price, then Sony is losing $20 per console. Sure they'll gain sales, but they are doing so at a loss as well as lowering the perceived value to consumers.

Then let's consider that they instead add in two free $60 games. Those games have a real cost. That cost should be no more than $20 each. So now, they've increased the cost of the new bundle from (250-80) $170, to $210. They are still selling it for $250. With the two games the new margin is still a profit of $40 vs a loss of $20. Additionally, they have increased the perceived value of the console to consumers as well as increased sales.


OK...That makes sense. It seems a bit limiting too though...not every consumer that wants a PS Vita also wants those two particular games.



Kresnik on 29 November 2012
kain_kusanagi said:
Instead of losing money on a discount, they pack in a game that has already paid for itself and increase the value of the box. People are more likely to buy something if it appears to have more value.

The system costs them a huge amount of money to produce, but the extra stuff they are bundling probably is old stock that is costing them money in storage rather than making them money at retail. Pack it, clear it out, trick some people into paying full price for their system, profit achieved.


Nice explanation, particularly the first line, thank you.



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