The Yen is Killing Sony - Is a PS3 Price Cut Even Possible for 2009??

[Khuutra]

misterd said:

RPG said:
If the Yen is so strong, that pretty much confirms that Japan will be the first to see a price drop. With the games releasing in 2009 in Japan it would also be a very smart decision, solidify the PS3 as the HD console of choice.

 

 

Right, because when they're losing money everywhere else, they want to make sure they're losing money in the one place they have a chance of eeking out a profit.

Mmmm, there's more to it than that. When they drop the price but keep a certain profit margin they'e going to sell more units, so - what's the word, net profits? - would stay roughly the same, even with lower profits per unit.

But even that's misleading, because a highr install base means that they make more money off of all games sold, and with a higher install base they sell more games.

Sony has a big graph somewhere that outlines exactly how long it would take them to get back to proper profit levels after lowering the price in Japan. If they're going to lower the price in Japan, it will be according to when they think that increased hardware numbers will make up for the lower margins, and they may factor software into that too.