Seihyouken said:
starcraft said:
makingmusic476 said:
1. A $50 price cut from $399 means little in the grand scheme of things. They'll probably cut it $100, or not at all.
2. Hardware costs are still going down. The 45nm Cell and RSX will help a lot. We should start seeing 45nm Cells in ps3s by mid-Summer, last we heard. Smaller chipsets leads to smaller heatsinks, less required ventilation, etc.
3. The isupply figure you used is from back in December. Things can change drastically in a year.
4. Retailers don't pay Sony substantially less for consoles than consumers do. They pay $4-5 less. GameStop actually loses 20 cents per console sold after they factor in their own shipping costs. Retailers aren't in this to make money from hardware. They make some money from new software (not much more than $6 per game in the US), but the lions share of their profit comes from new accessories (Sony manufactures a DS3 for ~$6 and sells it to retailers for under $20, who then resell it for $55) and used goods.
I personally think we'll see a $100 price cut no later than the holidays, barring the economy going even more haywire and the yen spiking even further. |
The Yen is another issue I didn't mention. I agree that a lot can happen in a year. But even if the PS3 was only losing $50 earlier this year, a $100 price cut would make that $150, which at best would probably STILL be a $50 loss by the time cost reductions are taken into account.
Bear in mind the ever diminishing revenue from the PS2, which is what created the profit back in the final quarter of Calendar Year 2007.
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All that would mean is that Sony is in the same position with the profiting from PS3 hardware that they are now, which exactly horrible to begin with. However, they will have drastically increased they're marketbase and will thusly gain more profit from software sales so it's a pretty fair trade off.
Profit from the PS2 is diminishing, but at the same time profit from the PSP is blossoming. If Sony releases a PSP2 later this year or early next year as many sources have hinted and speculated at, I don't see the PS2's death being a severe problem.
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Well that depends... will the PSP2 be sold at a loss like every other console they've ever released?
We really need to know more about what the PSP2 will entail before we can discuss any of this. Is it a full on next-gen handheld? Is it more of a DSi/Wii-like upgrade?
