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Forums - Sales Discussion - So how bad exactly is sony doing????

piningforthefjords on 22 July 2009
CrazzyMan said:
Sony is not doing bad till 299$ PS3 price.)

Of`course they lost some big chunk of money, BUT
1) they WON Blu-ray vs HD-DVD war with PS3
2) they still HAVE 3rd party developers support(and i dare to say, PS3 gets more quality 3rd party titles than even Wii(well , this works same for x360, but still))
3) they are ABLE to sell PS3 for SAME 400$ price during almost 2 years

So, unless Sony won`t be able to cut PS3 price to 299$ THIS year, they are doing ok.

Which they won't, because they're Sony.



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coolguy on 22 July 2009

this gen is done allready
1 wii
2 360
3 ps3



VITA 32 GIG CARD.250 GIG SLIM & 160 GIG PHAT PS3

tedsteriscool on 22 July 2009
CrazzyMan said:
Sony is not doing bad till 299$ PS3 price.)

Of`course they lost some big chunk of money, BUT
1) they WON Blu-ray vs HD-DVD war with PS3
2) they still HAVE 3rd party developers support(and i dare to say, PS3 gets more quality 3rd party titles than even Wii(well , this works same for x360, but still))
3) they are ABLE to sell PS3 for SAME 400$ price during almost 2 years

So, unless Sony won`t be able to cut PS3 price to 299$ THIS year, they are doing ok.

CrazzyMan...you're back!!!



Squilliam on 22 July 2009
Killergran said:
So the only reason the PS3 hasn't gone through the roof and sold more than the PS2 and Wii combined is that it's expensive? That's the only reason you can come up with?

I was really hoping for an insightful analysis. Instead I got a complete rehash of the price argument with an invented reason to ignore the fact that the Xbox 360's arcade model has the lowest pricepoint. Couldn't it possibly be considered that what the Playstation 3 offers isn't actually what people want? And that that is part of the reason it's not selling well?

Consider this: All three companies made different choices. Nintendo's choice earned them good sales and high profits. Microsoft's choices earned them mediocre sales and no profits/big losses(?). Sony's choices earned them mediocre/bad sales and huge losses.

And what do you mean that Wii owners 'wouldn't buy an HD console because of their inept casuality'? Is it "Wii doesn't count because I don't want it" or "Wii owners are too stupid for their own good"? Both reasons are bad, though the latter is downright loathsome.

By the way, your Bluray vs. DVD argument makes no sense whatsoever. When the PS3 released it was also relatively cheap compared to other blu-ray players. It was only recently that the Blu-ray price sunk beneath the PS3 price.



So apart from the opening post being a complete disaster, I believe the PS3 is doing ok, but Sony isn't. They're actually doing pretty bad right now, last I heard.

Taking just the U.S. price into consideration you could say the Wii is actually cheaper or the same price as the Xbox 360 Arcade because the Wii comes one with highly desirable game which displaces the need to purchase additional software at the point of sale. We've seen Wii Sports sell at an attach rate of 50% in Japan where there is a large and well developed used game/console market. The important cost is not the naked entry console price but the price at the counter with software/accessories etc.

As for Microsofts profits well we know that the Zune is losing them money, Windows for mobile is losing money most likely, as it was breaking even before the mad scramble to compete with the iPhone and Zune HD/Surface/Natal development has been money draining in one direction along with who knows what other mad projects they have running there. The only profit driver I can see in the division is the Xbox 360 which offsets these liabilities. Reading into their occasional statements about how the Xbox 360 is doing with regards to cost, revenue etc and its pretty likely that the Xbox 360 is far more profitable than the overall division results would indicate and I would suggest they are keeping these numbers close to their chest as to not tip off Sony about their options available to their pricing strategy.

 



Tease.

Viper1 on 22 July 2009
Squilliam said:

Taking just the U.S. price into consideration you could say the Wii is actually cheaper or the same price as the Xbox 360 Arcade because the Wii comes one with highly desirable game which displaces the need to purchase additional software at the point of sale.

 

The X360 Arcade still comes with 5 Xbox Arcade games and some bundles still unclude 1 retail title.



The rEVOLution is not being televised

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Squilliam on 22 July 2009
Viper1 said:
Squilliam said:

Taking just the U.S. price into consideration you could say the Wii is actually cheaper or the same price as the Xbox 360 Arcade because the Wii comes one with highly desirable game which displaces the need to purchase additional software at the point of sale.

 

The X360 Arcade still comes with 5 Xbox Arcade games and some bundles still unclude 1 retail title.

Oh? I didn't know that. But hey, if 50% of people want Wii Sports with their Wii and 50% hate it totally and would never get it. It means that the effective price of the Wii for the first 50% is $200 and the 2nd is still $250 then the average price is really about $225 if you average the two groups.

However since most people value Wii Sports to some degree the effective price of the Wii is lower than $225. You cannot say the same for the silly retail bundles with the Xbox 360 for which maybe 10% of buyers are interested in.



Tease.

Viper1 on 22 July 2009

I don't think intrinsic value here works over actual retail price. I mean isn't retail price the whole point of this price debate?



The rEVOLution is not being televised

Squilliam on 22 July 2009
Viper1 said:
I don't think intrinsic value here works over actual retail price. I mean isn't retail price the whole point of this price debate?

Using the strict retail price of the console is misleading at least to me personally. Consoles aren't TVs, you can't just walk out with the box and nothing else, theres no value in the machine alone. The value comes from the games that are played on the console and the importance of Wii Sports is that its an extremely valuable game. The important number for those thinking about the value argument is the minimum and average cost to get an acceptable experience at home.

In the strictest sense the Wii is about the 2nd cheapest console behind the PS2 and the most valuable console on the market. Wii Sports and Wii play are the keystones to the value argument because for $300 the full experience of the console is unlocked between Wii Sports, Wii Play and then tack on another $50 for Mario Kart and thats an excellent experience out the door for $350. An Xbox 360 Arcade with an extra controller and the usual couple of games is at least as expensive and the experience isn't as good as a Wii with that ultimate combo and the sales prove it.

My point is that the Wii nails both the value argument and the price out the door argument at the same time. The issue with the recent sales is not that the price of the console is weakening it because its already extremely cheap, its that the ultimate value combo is losing its effectiveness whether you use Mario Kart or Wii Fit as those markets are approaching saturation. We can see this because the sales of the mainstay Mario Kart and Wii Fit are weakening.



Tease.

Kantor on 22 July 2009
Lostplanet22 said:
amp316 said:
Carl2291 said:
Considering prices, its doing awesome.

I think everyone should wait until the PS3 reaches 360/Wii entry level prices until they say its a failure.

... but this won't happen for a couple of years, if ever.

Being in last place for over 90% of a generation has to be considered a failure.  I'm sorry, but a professional table tennis player can't spin it to look good.

I don't want to hear about how Gran Turismo 5 is going to save the system either.  MGS 4 didn't and neither will GT 5.

But thx MGS4 the PS3 sold more than the Xbox 360 for months shouldn't you reconsider that aswell.  And save is really a strange word.

The PS3 outsold the 360 for months without MGS4 as well. It was the price cut in the end fo 2007 that did it. MGS4 did, however, give the PS3 a massive, though short-lived, sales boost- it outsold the Wii and tripled the 360's sales that week. GT5 can do more than that.



(Former) Lead Moderator and (Eternal) VGC Detective

Squilliam on 22 July 2009
Kantor said:
Lostplanet22 said:

But thx MGS4 the PS3 sold more than the Xbox 360 for months shouldn't you reconsider that aswell.  And save is really a strange word.

The PS3 outsold the 360 for months without MGS4 as well. It was the price cut in the end fo 2007 that did it. MGS4 did, however, give the PS3 a massive, though short-lived, sales boost- it outsold the Wii and tripled the 360's sales that week. GT5 can do more than that.

Gran Turismo 5 prologue came out in March/April and that was a system seller too.

 



Tease.