senatorpjt on 24 July 2007
Two predictions can be made here: What Sony "should" do, and what Sony "will" do.
What I think they "should" do is lower the price as much as possible. The cost of manufacturing a PS3 has come down quite a bit, and will likely come down even more. The price of manufacturing a new console drops logarithmically - quickly at first, then reaching a constant level. They should price it as low as possible while maintaining it above the expected manufacturing cost in the future, such that in the end, the profits on the console will equal (ideally) zero over the entire life of the console.
It may not make sense, but pricing the console to achieve zero total profits actually generates the most profit, since it maximizes the sale of the console without a net loss, and leaves the profits from licensing, which is where almost all of the money is made anyway, even on consoles sold at a profit.
What they "will" do is anyone's guess, from what we've seen from Sony, they'll probably just stop selling the 60GB for $499, and start selling the 80GB for $599 again.
What they "will" do is anyone's guess, from what we've seen from Sony, they'll probably just stop selling the 60GB for $499, and start selling the 80GB for $599 again.
