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Forums - Sony Discussion - Pachter: Sony “Almost Certainly” Making a Profit on $399 PS4

I hope he is right for once,but he just seems to say things without any research or knowledge.



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How this guy is still around with his abysmal prediction rate is beyond me. If sony are making a "profit" then ms will be swimming in money with the significantly higher price point?



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This confirms that Sony is almost certainly taking a loss on the PS4.



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£349 in the UK (not including shop profit) is still near the US $545 mark (At this time of writing). So really offering it cheap to US/Europe (bigger buyer base). Then shaft the UK for marginal profit...

I'd say that's clever, and it could sell near Wii levels in the first few weeks if supply isn't shafted.



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Quartz said:
£349 in the UK (not including shop profit) is still near the US $545 mark (At this time of writing). So really offering it cheap to US/Europe (bigger buyer base). Then shaft the UK for marginal profit...

I'd say that's clever, and it could sell near Wii levels in the first few weeks if supply isn't shafted.


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How exactly does Nostradamus figure that?

Just as I was sure we'd see new MS and Sony consoles (unlike him), and I was sure his price predictions were too low, I'd be surprised if they were doing anything better than break-even considering the parts and the price. I'd really love to see how he came up with his numbers, particularly on the APU and RAM.



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gigantor21 said:
How exactly does Nostradamus figure that?


I'm sure it doesn't cost $150+ more to ship to UK vs Europe. If the UK got the US price we'd pay less than £200. But i'm not expert on marketing, but I'd thought I'd point that out as yet again the UK enjoys the price difference.



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Miguel_Zorro said:
Quartz said:
£349 in the UK (not including shop profit) is still near the US $545 mark (At this time of writing). So really offering it cheap to US/Europe (bigger buyer base). Then shaft the UK for marginal profit...

I'd say that's clever, and it could sell near Wii levels in the first few weeks if supply isn't shafted.

The UK to Europe comparison is valid in some cases depending on the specific country, but the UK to US comparison is not.

The £349 price point includes 20% VAT - which means £291 before VAT. This is about $454 US.

The cost of doing business is also known to be higher in both the UK and Europe due to higher regulatory costs.  All in, I estimate that the profit margin isn't significantly different.

There's also the issue of the £6.31 minimum wage in the UK which works out to $9.84 US - so retailer profit margins are even lower.

The real deal is here in Canada.  We get it for the same price as in the US even though they have to create special bilingual packaging to comply with our laws, and incur a variety of other costs.  On the other hand, we have to pay another 13% tax on top of that.

Fair play.  Like I said i'm no expert, Minimum wage in ther UK is still £6.19 until it rises on 1st October to the £6.31 (woopie do!)

But to get ahead in sales I'd imagine that Sony will just smash out a loss to get the new consoles in peoples homes.



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None of consoles are profitable I guess, Microsoft to have bigger loss since the Kinect should do more than 175-200$ by itself



Quartz said:
gigantor21 said:
How exactly does Nostradamus figure that?


I'm sure it doesn't cost $150+ more to ship to UK vs Europe. If the UK got the US price we'd pay less than £200. But i'm not expert on marketing, but I'd thought I'd point that out as yet again the UK enjoys the price difference.

LOL I was talking about Pachter. Sorry. :p



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