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Squilliam on 13 September 2008
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Geldorn said:
Squilliam said:
Million said:

Unfortunatley that is a series of weak sources and approximations , in reality you have no idea how much Microsoft their consoles cost neither do you know how much the PS3 consoles cost currently.

Whatever the case Microsoft aren't going to be making alot of profit of these consoles if they are actualy making a profit. Microsoft continues to drive down the cost making it look like the cheap option and continues to support the PS3's image as the higher spec , premium console.

it apears the Microsoft has ditched the pursuit of profitability and is instead gunning for marketshare .

 

 

Weak arguments huh? Isuppli is actually a credible source.

Also if a chip is 50% smaller it likely costs ~50% less to make. (Assuming similar yields) which in this case is true as the process is mature.

If people know that an Xbox 360 plays games exactly the same as a PS3 it actually makes the PS3 look overpriced rather than the Xbox 360 looking cheap.

Btw - The Xbox 1s image as higher spec/reliable/bla didn't help it.

 

iSuppli are analysts. They have no more credibility than any other analyst firm, like say the one that hires Mr. Pachter, widely known his 'super-accurate' reports.

Your other argument works both ways - people are seeing the Xbox 360 as a cheap toy, but they are also seeing the PS3 as expensive. In Europe (where this price cut is taking place) it seems the choice has already been made.

 

To recap the year in Europe so far:

Wii sales >> PS3 sales >> Xbox 360 sales

PS3 base price >> Wii base price >> Xbox 360 base price

 

Seems to me that the Xbox 360 being cheap is not helping it in the least.


Bahahahahahha! If they weren't credible then they wouldn't be in business. Isuppli helps companies bid on contracts by telliing competing companies the costs of components. They would actually have a pretty good idea what a capacitor costs and they surely can estimate with a good deal of accuracy the cost of the silicon and the manufacturing costs given the complexity of the board. The flipside of the coin is if people more likely see the PS3 as 'just' an Xbox 360 + Blu ray drive for movies then they will say you're paying xxx dollars for blu ray or if you don't want it you could pay xxx price to get the same capabilities.

Tease.