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Forums - Sony Discussion - Pachter says PS4 will sell at a small profit for Sony, GTTV

zumnupy10 said:

Is free MP really a selling point ?

I get the impression Sony regrets every single day of PS3's life for not charging for MP.   Maybe they didn't think a paid service like XBL could be so popular and generate MS money.

What Sony thinks about charging for MP is completely different than that being a selling point.

I have lived in 2 countries and I meet dozens of gamers who never bought a 360 because they have to pay for the online, they either bought a PS3 or build a PC. And after hearing the news that Sony is charging for online, some of them are extremely disappointed to the point where they are considering not getting the console.

Obviously what I heard from dozens of people does not represent the whole market, but many people have shown their disappointment on the internet as well. Will this make people not get the console? Obviously not, but Sony might lose some potential customers which bought the PS3 only because you didn't have to pay for online.



Nintendo and PC gamer

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Conegamer said:
I thought Sony said it was going to sell at a small loss? Maybe not...but a profit does seem unlikely for me. If the Wii U can't make one, I doubt the PS4 can.


The Wii U has an expensive Tablet Controller that adds $100 to the cost...



RolStoppable said:
What we shouldn't forget is that there were also quite a few discussions regarding PSV costs. Back then people were also suggesting that it's sold at a profit or at worst at a tiny loss. Plus apparently costs would come down fast, because the system is using standard cell phone parts or something like that. Yet here we are 1.5 years later and Sony still refuses to announce a long overdue price cut in America and Europe to spur hardware sales.

People repeatedly underestimate the costs of video game systems, so why should the PS4 be any different? The system is sold at a loss, no ifs and buts. Just like the PSV had proprietary memory cards as a sign that Sony is trying to offset losses on the hardware itself, so does the PS4 have paid online multiplayer. Instead of guessing the bills of materials, people should look at what a company does. If the PS4 was selling at a profit, then why would Sony give up a major selling like free online multiplayer?


You clearly have no idea what you're talking about. PSV was sold at a loss day 1, Sony said that officially. 1.5 year later Sony isn't cutting the price in the West not because it can't, but because it would be stupid - it has nothing to do with the current manufacturing costs. They cut the price in Japan cause there was a great 2 month window packed with games and it allowed them to sell quite a lot of consoles. There is no such offence of numerous great games released in a short period of time in the West that could help them take advantage of the price cut. Cutting the price now would be throwing money into mud, cause it would cause them to lose significant money and wouldn't really help sales - the same is the case with Wii U. You need software to carry the wave of a pricecut. I guess we can expect a Vita pricecut when KZ:M and Tearaway are released, cause that would be the best time in the foreseeable future, especially if by that time we get some announcements about the games released in the Christmas period (hopefully a new AC and a Sony Bend game).

Sony would be braindead if they didn't introduce mandatory PS+. The added profit easily outweights the profit they would get from people buying the console because MP is free. Especially in a world where MS policy is so ridiculous that nobody really cares about the paid online on PS4. PS+ is awesome in comparison to Live (which is a success) and is totally worth the price, so Sony is still better than MS was with X360, while MS made many big steps the wrong way as is so much worse than in the past.

So both these decisions are business ABC and don't indicate what you are implying.

Personally I don't care if PS4 is sold at a small profit or at a small loss. Even if it's sold at a loss, it can't be huge and PS4 will be profitable for Sony starting with year 1, not year 3-4 like it was with the PS3 (I'm not including R&D costs, though these should also be lower than PS3 R&D costs - no BR or Cell this time).



Wii U is a GCN 2 - I called it months before the release!

My Vita to-buy list: The Walking Dead, Persona 4 Golden, Need for Speed: Most Wanted, TearAway, Ys: Memories of Celceta, Muramasa: The Demon Blade, History: Legends of War, FIFA 13, Final Fantasy HD X, X-2, Worms Revolution Extreme, The Amazing Spiderman, Batman: Arkham Origins Blackgate - too many no-gaemz :/

My consoles: PS2 Slim, PS3 Slim 320 GB, PSV 32 GB, Wii, DSi.

These breakdown costs are looking at parts and their manufacturing.

They typically don't include the R&D costs. Adding that into the equation can turn a profit to a loss.

Mike from Morgantown



      


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mike_intellivision said:
These breakdown costs are looking at parts and their manufacturing.

They typically don't include the R&D costs. Adding that into the equation can turn a profit to a loss.

Mike from Morgantown

But R&D cost are not part of a profit/loss of each console unit... it is part of profit/loss of the Game division... two different things here.

PS4 profit per unit = help division
PS4 loss per unit = didn't help the division

I can have profit per PS4 and loss in division or loss in PS4 and profit in division.

Anyway... make profit in each PS4 division is the best world even if the Division have loss due R&D and other things.



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binary solo said

Sony is a greedy, evil corporation, we must not lose sight of that fact. But they are doing a damned good job of pretending to be our friend.


Greedy?  Yeah, they're a company that needs to make money.  They're going to charge for what they think they can get.

Evil?  Hardly.



The Screamapillar is easily identified by its constant screaming—it even screams in its sleep. The Screamapillar is the favorite food of everything, is sexually attracted to fire, and needs constant reassurance or it will die.

Dream price and still they're profitable. What a perfectly designed system from every aspect.



Poor Sony, up until now it did everything well with PS4, except pay multiplayer online, now Pachter comes and single-handedly d0m3s it!



Stwike him, Centuwion. Stwike him vewy wuffly! (Pontius Pilate, "Life of Brian")
A fart without stink is like a sky without stars.
TGS, Third Grade Shooter: brand new genre invented by Kevin Butler exclusively for Natal WiiToo Kinect. PEW! PEW-PEW-PEW! 
 


If that is true, adding the PS+ requirement, I think SCE is in for some major profits next gen. Which means more great games for us.



Sony declined to say whether it was making a profit or loss. That means loss. Probably small but still.