I think Sony should be making a small profit on each PS4 for a few months now. MS might be breaking even with the $349 price, but all those bundles like the AC Unity one probably lost money.
NNID: FrequentFlyer54
| Ka-pi96 said: That seems unlikely. If they were making that much per Wii U I'm sure they would have had a price cut by now to stimulate sales. A year or so ago Nintendo said they were making profit, but only because they stopped making new Wii Us and were just selling the ones they already have, that was awhile ago though so things may have changed since. |
It really isn't ...
The WII U is cheaper to make than what most people think and it really doesn't make any sense for Nintendo to lower the price either since they'll be wiping away with what measly profits they have left. It's a balancing act, they could choose to sell 650K more units in their lifetime at a 10$ profit or they could just stick with their current price which can net them 50$ a pop ...
The margins from the hypothetical former option is not acceptable at all for a company of a size like Nintendo with operating costs going upwards of at least 400 million dollars ...
| MoHasanie said: I think Sony should be making a small profit on each PS4 for a few months now. MS might be breaking even with the $349 price, but all those bundles like the AC Unity one probably lost money. |
xbox one cost more to manufactor than the PS4 dueto MS being bad in desiging hardware and the HDMI in feature
Well I'm guessing the Yen exchange rate has played a big part, considering how much it has fallen the past couple years.Much of the cost advantages of economies of scale and tech advances may have been eaten up by the depreciating Yen currency.
| MoHasanie said: I think Sony should be making a small profit on each PS4 for a few months now. MS might be breaking even with the $349 price, but all those bundles like the AC Unity one probably lost money. |
If MS is breaking even at 349$, one would think the PS4 would be making 50$ profit per unit at 399$, no?
| AFloatingDuck said: Also, the X1 didn't have an $150 price drop, it had a $50 one. Unbundling the Kinect won't have lost Microsoft any money. Just clearing up a blatant myth spread by the haters. |
That 120$ cut in the holidays though.
Anyway OP you answered your own question, it dpeends on the manufacture cost, which we don't currently know what is.
Ruler said:
http://allthingsd.com/20131119/teardown-shows-sonys-playstation-4-costs-381-to-build/ |
Even if that's correct that's still not up to date, Sony reports pretty much every quarter that PS4 manufacturing costs have gone down. This quarter again for example:
Sony earns money with selling Playsation 4 for 400€!
Microsoft lose money with selling Xbox One for 350€!
Nintendo... Don't know...
| Ka-pi96 said: It does make sense for them to lower the price (at least if they are making any kind of decent profit per unit sold) since the majority of their profits come from their software sales. Look at the likes of Mario Kart and Splatoon, they are the money makers for Nintendo. More Wii Us sold means more people to sell their software to. |
Selling software isn't the only way to make a killing when you look at amiibo or the hardware Nintendo was selling last gen ...
fatslob-:O said:
Selling software isn't the only way to make a killing when you look at amiibo or the hardware Nintendo was selling last gen ... |
But amiibo are also tied to how much hardware you sell.... And this isn't last gen we're talking about, this is current gen.
Anyway, Nintendo made almost as much revenue from their own software compared to their own hardware, and the margin is deffinitely higher for 1st party software than hardware, so a pricecut would make especially much sense for a company like Nintendo.
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