Arkk said:
bumidan said:
Arkk said:
I appreciate the time it took to do this, and I did read the whole thing, but I just find it hard to agree with you on some points.
For example, " However, due to increased online distribution and POSSIBLY HIGHER LICENSING FEES for PS3 software...". Why would the licensing fees be any higher now than before?
And one for PSP, "With cost reductions and a possible? new model coming out, I am increasing the net profit per PSP from $2(*) to $8(*)". Now, you fail to mention that there could also be a possible price cut to the device, and a new model is just rumour at this point, so increasing net profits from $2 to $8 would definitely be a stretch.
But I am nitpicking really. Other than those two points, I find the analysis to be pretty logical. Good job!
Now, if we could only find something better for you to do in your spare time!
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@ArkkYou are free to disagree, that is what a good debate and discussion is all about. Thanks for the feedback.To answer your questions:The reason I increased the licensing fees and really the NET PROFIT assumption for the PS3 is software is because:1. PS fanboys and/or people more knowledgeable than me pointed out that PS3 licensing fees are higher than PS2 and PSP. Therefore, I changed it.2. PSP - I suppose I just judged it that way - because I was not aware of any PSP price cuts and Sony mentioned that PSP had cost reductions.To reiterate, the original work is a financial model. If the VGChartz community has an original and trusted data source for some of those numbers, I can use them to tweak the model and make better analysis and projections.
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And one more thing. The reason why I pointed out the "raised licensing fees" issue was because I thought you were saying they would be higher on the PS3 than they were on the PS3 the year before, not in relation to the PS2 or PSP. Otherwise, this statement may make more sense than I first thought.
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You are correct Arkk. I did raise the Net Profit for PS3 Software to $3(*) per unit, just for the FY end Mar 2009.
Again, the reason is because with increasing online distribution/downloads, the net profit margin on those should be greater for obvious reasons.
If we use the same $2(*) net profit assumption, then the profit projection would have been $183(*) million, instead of $290(*) as was in the original post.
