| NJ5 said: It's more conceivable that they could drop the price quicker/bigger than the 360 which is essentially based off of existing PC technology.
1. The 360 is not based on PC technology. Maybe you're mixing it up with the Xbox? Look at Blu Ray players, started at $1,000 and are now down to $300. Without a detailed analysis of actual costs of each machine, which I doubt you have it's your opinion compared to mine.
2. It's not my opinion that they're losing a lot of money on PS3 hardware, it's Sony's: "our cost of the hardware is much higher than the price itself" 3. You said they have promised not to cut the price of the PS3 to the board member. I don't see that in the article you posted.
"Our strategy is not to sell more quantity for PS3 but to concentrate on profitability," Oneda told investors at a Nomura Asia Equity forum in Singapore. "Our plan is not to reduce the price."" "to increase the software rather than drastically increase the quantity by adjusting the prices" "this year we don't think it is a time to aggressively sell the hardware quantity this year. That's our strategy for this fiscal year." Read these declarations, it doesn't get much clear than that. They're telling investors that they're concentrating on profitability and selling software, not hardware price reductions. This would explain their hardware sales forecast, which is not ambitious. Do you think they'd risk having an unprofitable / break-even holiday quarter 2 years after PS3's launch? That would make the games division look like a pure money sink, since that's supposed to be the biggest quarter. Investors wouldn't be happy at all, especially considering Sony's falling profits. All the signs point towards no price reductions this year. I've made up my mind, and I've given you all the information you can use to make up yours. I'm not out to convince you, so let's just let it rest :) If they don't drop the price now they will gain no effect from a price drop until the 4th quarter of next year.
Not true, any price cut will help throughout the year. And how much do you really think a $50 price cut could help them in the holidays? I think they're just going to make some attractive bundles, and call it a day. |
1. Lol, is the xbox 360 a PC. No, but it's alot closer than the PS3 and not that much different than an xbox.
2. I didn't say they weren't losing money on hardware. But xbox will too with this deal.
3. Not a promise they won't drop the price. All they are saying is they want to be profitable and they don't want to focus on hardware prices. I don't know how that corresponds with investors would be upset with a price drop. The investors hired them to do whatever is necessary for the business to succeed. But Microsoft is forcing their hand here. A $50 price cut this holidays is huge. Microsoft is ahead 12M to 5M (approximate) right now. If this price drop cleans up, and Microsoft ends the holiday up 21-22M to 8-9M then the PS3 is irrelevant. Big name exclusives will either get the port treatment or skip PS3 altogether. Which means piddling PS3 sales and they'll be lucky if they recover the investment on the PS3. So while profitability now is great I think a response is necessary. They made the PS3 too expensive. It was a mistake. But their best hand is to play their hand now and make the PS4 a profit from the get go.
