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

VanceIX on 31 July 2014

I would hope the parts cost went down after a whole year



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Xbox One - PS4 - Wii U - PC

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bubblegamer on 31 July 2014

Not surprising. Sony succeded in cutting the cost of the PS3 in record time as well, one of the perks of being a hardware manufacturer first.



pokoko on 31 July 2014
Ka-pi96 said:
kowenicki said:


not sure thats the right terminology.


You're the expert at this kind of stuff so you would know. But it's still good right?

It's just that "pure profit" typically means no or an inconsequential amount of overhead.  For example, if someone gave you a Norwegian Forest Cat for free and you turned around and sold it for $30, that would be pure profit.



Landguy on 31 July 2014
BeElite said:
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.  

I don't think that the XB1 has showed a lack of demand.  I think it has showed a lack of pricing.  I am not sure how people call the removal of hardware a price drop?  Did the price change?  Yes, but part of the system capability left with it.  M$ hasn't been screaming off the rooftops about the new price. 

We are so close to the holiday season, the real price changes are just around the corner.  THe reason Sony even brought up their cost of production drops was to let invenstors know that they won't be in trouble this holiday when they do the normal bundles and special pricing this season to keep pace with what crazy stuff M$ will be doing.



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

HokageTenshi on 31 July 2014

get ready for PS4 slim... 



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BeElite on 31 July 2014
Landguy said:

I don't think that the XB1 has showed a lack of demand.  I think it has showed a lack of pricing.  I am not sure how people call the removal of hardware a price drop?  Did the price change?  Yes, but part of the system capability left with it.  M$ hasn't been screaming off the rooftops about the new price. 

We are so close to the holiday season, the real price changes are just around the corner.  THe reason Sony even brought up their cost of production drops was to let invenstors know that they won't be in trouble this holiday when they do the normal bundles and special pricing this season to keep pace with what crazy stuff M$ will be doing.

Yahh getting doubled half the time in your home market. really showing that demend.   Entry price is lower, its been cut from 500 to 400

MS wont be pulling anything crazy, xbox is not exactly a love object at MS.  



theprof00 on 31 July 2014
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.

It's not really set in stone that "there is no need". It's up to Sony to decide whether missing out on profits now will pay off in the long term.

Profit is profit, but profit doesn't have the effects marketshare does.
Effects of profit: Able to produce more games, more advertising
Effects of marketshare: Lock in customers, build brand, increase install base, secure more multiplats/exclusives, word of mouth

 



BeElite on 31 July 2014
kowenicki said:
bubblegamer said:
Not surprising. Sony succeded in cutting the cost of the PS3 in record time as well, one of the perks of being a hardware manufacturer first.


what!? lol.

who builds PS4's and who makes the innards of the PS4?

lol

who designs and redesigns it.  



Landguy on 31 July 2014
BeElite said:
Landguy said:

I don't think that the XB1 has showed a lack of demand.  I think it has showed a lack of pricing.  I am not sure how people call the removal of hardware a price drop?  Did the price change?  Yes, but part of the system capability left with it.  M$ hasn't been screaming off the rooftops about the new price. 

We are so close to the holiday season, the real price changes are just around the corner.  THe reason Sony even brought up their cost of production drops was to let invenstors know that they won't be in trouble this holiday when they do the normal bundles and special pricing this season to keep pace with what crazy stuff M$ will be doing.

Yahh getting doubled half the time in your home market. really showing that demend.   Entry price is lower, its been cut from 500 to 400

MS wont be pulling anything crazy, xbox is not exactly a love object at MS.  

you should take a few minutes and research the sales trends for the 360 and PS3 on a month by month basis.  In most years, the PS3 either led or tied the 360 for 9 months of the year.  But, when the holidays hit, the 360 would outsell the PS3 by a generous margin.  This made up for the other 9 months.  If you look at last holiday, M$ outsold them too.  M$ knows like everyone else, that this holiday will probably be the most important one for the XB1 if it has any chance to remain relevent in the consumers mind.  If they wait til next year, it will be too late to get people to care.

I doubt M$ will do a real price cut this year(even though they should).  They will have some incredible bargains though.  Today, if you wanted, you can go to Best Buy and get a XB1 and recieve a $50 Xbox Live card for free.  This is in July.  I would expect deals that bring the effective price of the XB1 down to $299 during the holidays.  This will have an impact, as once the price get below $300, sales patterns change dramatically.



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

kitler53 on 31 July 2014

good for sony. they really need ps4 to be profitable right now so i'm happy for them.


still,.. i hope they cut the price sooner than later. do that whole "deal" thing this holiday like MS typically does and then drop the price officially in spring. i want ps4 to keep it's momentum up and not let xbox claw it's way back to relevance.