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Has Sony's arrogance cost them november npd?

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Did sony do enough to win november NPD?

Nah 291 38.96%
 
Yes 130 17.40%
 
They can't lower their p... 242 32.40%
 
xbox one is the future of the USA. 82 10.98%
 
Total:745
GTAexpert said:
Ka-pi96 said:

eh? China is bigger than the US...

Not in terms of geographic area.


China's purchasing power just surpassed the US. Its going to be interesting to see how their sales play out throughout the generation.



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theword said:

I read somewhere that it probably cost MS in the hundreds of millions with the cuts.   Sony's lead is substantial enough that they don't need to react yet.  If MS continue to lead sales for the next six months. You bet Sony will be more agressive coming into holiday 2015.  But again maybe not.  They are not in the financial position to take such large hit.

 

at least 385 mil. It costs $471 to make the console and they made 1.2 mil sales selling each console at $150 each. Yeah, big losses on those sales. 



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Nate4Drake said:
KLAMarine said:
Pretty sure Sony doesn't care: the ps4 is still selling big numbers. Some people on the internet care though, for whatever reason.

Zealots at the highest level ? I say yes.

Sony are doing all great, sell numbers are insane, dominating in the Global, and competing with MS in their own territory, forced to 'pay' you to buy an X1...

I would say MS is in deep sh.. if they won't be able to compete without crazy deals and price.  The answer will be from Gen 2015 to Nov 2015. 

This is not Sony arrogance, this is Sony winning this generation with a smile on their face.

Let's not count our chickens before they hatch.



I believe the game sales might and should somehow recuperate the profit margin that MS decided to blow off with the price-cut. Was  this heavy price-cut the only solution to lure customers(UK and US being strategically targeted)? What happens after temporary price-cut through to 2015 first quarter? I believe targeting holidays alone should not be the sole factor. And how do NPD numbers for just one month influence the overall performance? The next six months post holidays will be very crucial.

So was adding bundle to the price an arrogant move for Sony? I don't think so. 



SweetTalia said:
Barkley said:
Drazgonow said:
Or maybe they went in to it thinking we got the whole world to stock not just murica.


M8, America is all that matters!!!!

Stop resisting and be humbled.

 

But yeah the ps4 is the fastest selling console of all time, why lower the price?

If x1 continue to outsell in the usa , they might need to drop the price

Only if it continues. That's the interesting part to be seen. Would MS retain the price-cut?



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Ka-pi96 said:
Norris2k said:

Well, technically, US, UK and China are countries, not regions. Even if US is big enough to be considered as a region, China is by far not.

eh? China is bigger than the US...

Obviously, I mean big enough as a console market.



PenguinZ said:
SWORDF1SH said:
PenguinZ said:
Microsoft can afford to absorb losses... Sony can't.

Silly argument that I see keep popping up. Do people really think that MS had a price drop to just chuck money away? No, they did it to make their install base bigger and therefore make more money on software sales  and live subs.

What Sony have to decide is that if they drop their price, how much would they need to so that profit from increased install base outweights the loss they would from profit from console pric drop. It seems that its not time for a price drop.

For MS a price drop is more beneficial and an easier decision to make.

This also has nothing to do with arrogance and anybody with a slight understanding of business can see why.

What's silly about it? Sony is still in a bad state as a company. The PS4 has been doing extremely well for them. Microsoft on the otherhand has been getting crushed, so they needed to do something. The price cut clearly helped them a lot with sales. Microsoft is likely happy with the results, but I'm sure they lost money doing it.

Now if Sony were in better shape financially, the question would be this: Would Sony have matched Microsoft's price cut this holiday in the US in an attempt to completely shut the door on Xbox. I think they actually might have, and I think it would've worked.

BTW, I don't think Sony was arrogant, nor have they really been arrogant in general, and I do believe that they made a good decision this holiday season.

I agree with most of what you are saying but my point is that a price cut is not used to just throw away money. Sony could of easily cut the price and even matched Xbox's price but they more than likely weighed up that if they did, they extra money from software sales and ps+ isn't the most optimum way to make profit. On the other hand it was for MS. Sony do not want to get into a price war, lowering the price of their product will have a knock on effect. It's pretty silly to have a knee jerk reaction to everything your competitor does and to do so this early in the life cycle. They are happy to let MS have this holiday, keep the price of their product high and use a price cut as a weapon when they really need it.



No need to bleed money to win NPD when you can win the month worlwide without sacrificing profits, even more so if you consider that winning outside of USA gives Sony a higher profit margin, except perhaps in pathologic cases like Italy, where fiscal system (not just the high amount of taxes, but also the demented, useless and unjustifiable complications related to them), bureaucracy and rigid work organization kill profits of most enterprises.



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