Rumor: PS3 price drop coming march 22

[NJ5]

Darc Requiem said:

potzo said:

mtofu said:
i dont know what the software attach rate is for sony, but isn't software where most console manufacturers make their money?

if they're able to sell a bunch of consoles from a price drop, doesn't that in turn sell a bunch of games... and even BD movies?

how many games would it take for sony to recover $50?

 

Between 4 and 5 games to recover 50$.

 

 

It would be about five 3rd party titles and 2 first party titles. Actually, they'd net a small profit with two first party games and be breaking even on five 3rd party games. It could be more than five third party games if Sony cut the third party a break on the licensing fee like they were rumored to do with MGS4.

You're looking at it wrong.

It's not a matter of how much software sales it takes to recover $50. Only the software sales caused directly by the price cut should count in a cost/benefit analysis. Most of the buyers would buy a PS3, price cut or not (unless you believe sales would increase more than 100%). This makes it much harder for a price cut to be worthwhile, profit-wise.

So for example if the price cut boosts PS3 sales to 13 million as opposed to 10 million for the year, the 3 million additional owners would have to give Sony $650 million in software revenue for the price cut to break even ($50 times 13 million). This comes out to $216 per owner, or around 10 pieces of software.