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Forums - Sony Discussion - Pachter: PlayStation 3 Price Cut Likely This Week

teigaga on 18 February 2013

they have no reason to cut the rpice, they are selling well at the moment and are making a profit.



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MakeAmazing on 18 February 2013

But the number of consoles across the board are dropping though right? Currently down 29% or something? so perhaps to stabliise sales they will reduce the price. But if they were going to do it, then they might do it tomorrow so they dont take the focus off the PS4 ... as surely they will want everyone talking about the PS4 for the rest of the week after Wednesday.

At the moment its all guesses, but exciting anyway.



bananaking21 on 18 February 2013
MakeAmazing said:
Lets be honest Pachter is great, he gets such a hard time from gamers. He got the Wii-HD should be out now (2 years ago) totally right.. everyone laughed at him.

In terms of PS3 some people are forgetting basic business practice... the money you lose from cutting the price will be negated by increased sales.

Sony have already been profiting from the latest PS3 slim, its cheaper than the previous version to make, so the margin they are making is actually higher than it was before it came out. If by reducing the price, they are still making a profit but have the chance of selling more units and will sell more software/accessories.

Of course cutting the price of a product doesnt always help increase sales, but they will still be making a profit from it.

That doesnt mean i agree there will be a PS3 price cut this week, just that if Sony feel they need to this year to improve the sales of the PS3, then they have it as an option, its going to happen sometime this year, its just a case of when.

I will say their PR has been amazing this last two weeks and its all Sony in the gaming news at the moment... perhaps they want that good news to continue...

but will the extra sales really make up for the lost 50 bucks of profit for each console?. with the new super slim im expecting they are profiting quite a lot of it, why would they go and heavily decrease that great profit margin? and yes there PR have been amazing

i would say pachter a lot of times makes sense, though a lot of those time he is just stating the obvious. but gamers like to hate and troll on him (he is funny to troll of) including me too lol. but a lot of times he is just talking bullshit. 



thismeintiel on 18 February 2013
Vinniegambini said:
No it won't.

- Sony expects to profit by year-end; it won't be able to do so by having a money losing venture once more in the gaming division
- PSVita already got a price cut - now selling at a loss
- PS3 is is profitable as of late 2010 - keep it that way.
- Price cut will come shortly once the PS4 is released; thus, one will see a price cut in FY14.

Got proof the Vita is selling at a loss?  Or that if Sony dropped the price of the PS3 to $199, even with the reductions in manufactoring due to the Super Slim, they would be selling it at a loss?  Didn't think so.

@ OP

I wouldn't be surprised to see this happen.  It would be just in time for all of their big exclusives to launch in a month and on.  Though, they may wait til the end of March, just to make their financials look even better in the profit department.



 

thismeintiel on 18 February 2013
bananaking21 said:
MakeAmazing said:
Lets be honest Pachter is great, he gets such a hard time from gamers. He got the Wii-HD should be out now (2 years ago) totally right.. everyone laughed at him.

In terms of PS3 some people are forgetting basic business practice... the money you lose from cutting the price will be negated by increased sales.

Sony have already been profiting from the latest PS3 slim, its cheaper than the previous version to make, so the margin they are making is actually higher than it was before it came out. If by reducing the price, they are still making a profit but have the chance of selling more units and will sell more software/accessories.

Of course cutting the price of a product doesnt always help increase sales, but they will still be making a profit from it.

That doesnt mean i agree there will be a PS3 price cut this week, just that if Sony feel they need to this year to improve the sales of the PS3, then they have it as an option, its going to happen sometime this year, its just a case of when.

I will say their PR has been amazing this last two weeks and its all Sony in the gaming news at the moment... perhaps they want that good news to continue...

but will the extra sales really make up for the lost 50 bucks of profit for each console?. with the new super slim im expecting they are profiting quite a lot of it, why would they go and heavily decrease that great profit margin? and yes there PR have been amazing

i would say pachter a lot of times makes sense, though a lot of those time he is just stating the obvious. but gamers like to hate and troll on him (he is funny to troll of) including me too lol. but a lot of times he is just talking bullshit. 

Well, you have to think of it this way.  The loss of $50 in profit is a one time deal that comes with the initial purchase of the console.  However, they will more than make up for it with SW and controller sales from that customer in the coming years.  So, more HW sales, even at a lower profit, will bring in larger profit in the end.



 

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Maris on 18 February 2013
BasilZero said:
bananaking21 said:
BasilZero said:
So no price cut confirmed.


i dont understand why all you people are hating pachter. dont you guys remember that he is the one who predicted that the PS4 will be annonced at the ps meeting on the 20th?. it was his prediction that made us all realize what the event was all about


1 out of...who knows how many predictions...not a good ratio ;x.

I wouldn't even give him credit for that. Most of the time the stuff he was right about is incredibly obvious information. Did anyone seriously doubt the PS4 wouldn't be revealed on the 20th after all of the hype Sony has been building?



DerpSandwich on 18 February 2013

Nintendo's going to be in deep doody if Sony and Microsoft drop their prices. It's already hard for most people to justify buying a Wii U when the other consoles are basically just as powerful and significantly cheaper (and this is coming from a proud Wii U owner). And I don't think Nintendo will drop the price for at least a year, seeing as they don't want give people a reason to never buy a Nintendo system at launch again.



Currently playing:

Bloodbath Paddy Wagon Ultra 9

zhao3gold on 18 February 2013

Another price cut? How many times Sony cut the price in these 2 years?



bananaking21 on 18 February 2013
zhao3gold said:
Another price cut? How many times Sony cut the price in these 2 years?


just once in 2011



Vinniegambini on 18 February 2013
thismeintiel said:
Vinniegambini said:
No it won't.

- Sony expects to profit by year-end; it won't be able to do so by having a money losing venture once more in the gaming division
- PSVita already got a price cut - now selling at a loss
- PS3 is is profitable as of late 2010 - keep it that way.
- Price cut will come shortly once the PS4 is released; thus, one will see a price cut in FY14.

Got proof the Vita is selling at a loss?  Or that if Sony dropped the price of the PS3 to $199, even with the reductions in manufactoring due to the Super Slim, they would be selling it at a loss?  Didn't think so.

@ OP

I wouldn't be surprised to see this happen.  It would be just in time for all of their big exclusives to launch in a month and on.  Though, they may wait til the end of March, just to make their financials look even better in the profit department.

Have you done research on your end before commenting? Didn't think so

The Vita is selling at a loss as per an interview with Reuters Japan - http://www.examiner.com/article/sony-to-sell-playstation-vita-for-a-loss-profitable-3yrs

The loss will only worsen with the price cut; hence, my comment.

Furthermore, as per Reuteurs, Sony is relying heavily on PS3 to make up for the poor performance of its handheld division to posts profits - http://www.reuters.com/article/2012/09/20/us-sony-games-vita-idUSBRE88J07H20120920

As a result, if Sony drops the price of the PS3, the profit margin will be signifanctly lower - self explanatory.

Thxs.