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Forums - Sony Discussion - Sony has already managed to cut the costs of PS4 hardware production

Sony has already managed to cut the costs of PS4 hardware production

And PS4 continues to do better than Sony expected.

Sony has already managed to reduce the manufacturing costs associated with PS4 hardware, the company has revealed.

The cuts have allowed Sony to revise its financial expectations, increasing its projected FY2015 operating income for its Games & Network Services division from 20bn yen to 25bn yen.

"Sales are expected to be higher than the May forecast primarily due to the strong performance of the PS4," Sony said in its latest earnings report. "Operating income is expected to be higher than the May forecast primarily due to PS4 hardware cost reductions."

The reduced costs suggest Sony could be better placed to cut the price of PS4 at an earlier point in its life-cycle - or continue to reap improved profits from ongoing sales.

PS4 sales stood at 7 million in April although Sony has failed to provide an update since. PS3 and PS4 sold a combined 3.4m units between April-June 2014, however, of which the vast majority are expected to be PS4.

Source: sony.net

 

 

Source: http://www.videogamer.com/news/sony_has_already_managed_to_cut_the_costs_of_ps4_hardware_production.html



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Not surprising. I don't think there should be a price cut for at least another year. Its selling so well at $399 so they should try to keep increasing their profit margins. A price cut should around mid 2015.



    

NNID: FrequentFlyer54

Would be nuts if the fuckers were crazy nuff to cut price this year, PS4 could maul the comp to 90% market share.



Means capacity to do some good specials, e.g. For black Friday.



“The fundamental cause of the trouble is that in the modern world the stupid are cocksure while the intelligent are full of doubt.” - Bertrand Russell

"When the power of love overcomes the love of power, the world will know peace."

Jimi Hendrix

 

BeElite said:
Would be nuts if the fuckers were crazy nuff to cut price this year, PS4 could maul the comp to 90% market share.


But by this they'd be losing money/profit. By now there is no need to cut the price as market share alone doesn't necessarily bring you more money or the same money you get while making profits with the same price. Therefore you have guys in your company who know about financials and don't care only about marketshare.



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walsufnir said:
BeElite said:
Would be nuts if the fuckers were crazy nuff to cut price this year, PS4 could maul the comp to 90% market share.


But by this they'd be losing money/profit. By now there is no need to cut the price as market share alone doesn't necessarily bring you more money or the same money you get while making profits with the same price. Therefore you have guys in your company who know about financials and don't care only about marketshare.


Would they be though, x sales per unit add whatever % buys Plus add what little loss if any on hardware and voila they can or cant.  

They already said they will aggressively persue increasing PS4 user base, it would fit what they see as a road map for the PS4.

Hilarious is that it actaully could happen, and the sales slaughter would be epic to witness.  



Sony did a great job with the manufacturing costs of PS4, no doubt about that.



Lower the price of PS4, substantially increase the userbase therefore getting significantly more game and accessory sales. It will result in better financials no doubt.



Money can't buy happiness. Just video games, which make me happy.

Baalzamon said:
Lower the price of PS4, substantially increase the userbase therefore getting significantly more game and accessory sales. It will result in better financials no doubt.

I agree with this.  THe difference is that both M$ and Nintendo could cut price too.  If they all drop price, it equals the faster adoption rate, but not always a bigger user base in the end.



It is near the end of the end....

Landguy said:
Baalzamon said:
Lower the price of PS4, substantially increase the userbase therefore getting significantly more game and accessory sales. It will result in better financials no doubt.

I agree with this.  THe difference is that both M$ and Nintendo could cut price too.  If they all drop price, it equals the faster adoption rate, but not always a bigger user base in the end.


While they could who says it would do much good for them ?

My U cost 249.99 quite a while ago.  i dont know how low they would have to go to really motivate sales.  

While X1 just showed a lower price did not much for it.  It may be in a GC situation where low low price wont do much to spur sales, a product lacking demand will sale only so little no matter how low the price goes.