| RPG said:
No buddy cant say you did bring my logical arguement to it's logical conclusion, me saying a $100 loss means more profit at the end does not have the logical conclusion of making the console $0. You are one of those who think very low level, really sad actually. :( I cannot prove a $100 price cut will help Sony rather then hurt them, I do not have the numbers but what I do know is that software sales would easily make up for that $100. Especially with development costs coming down for the console and huge games coming, it would not actually be a gamble at all rather then a logical choice. |
Let's put it like this.
Say the ps3 is breaking even right now and 50 people buy it each week.
A $100 price cut doubles sales to 100/week, sony now lose 100,000 each week.
(Now) Everyone who bought that console that week would have to buy 12 third party games (assuming sony makes $8 royalty on each game) or about 3 or 4 first party games (at full price) before they reach the pre-price cut breaking even point. You see sony does not want software sale to mearly make up the hardware losses, they actually want to profit. $100 is a hell of a lot to make up in software sales.
Edit: Remember, it's not just the people who choose to buy a ps3 because of the reduced price that have to make up the $100 in expenses, it's the people who would have bought the ps3 at the higher price point also.
