By using this site, you agree to our Privacy Policy and our Terms of Use. Close
mjc2021 said:
taxman said:
It's not a matter if they are selling at a loss or not. It only matters if they can justify the extra expense with future profits.
No one can deny that more consoles means more software revenue in the future. If they can get that revenue in the future to cover the cost of the initial investments (sellign at a loss) then the only thing they need is cash to cover the initial costs and they can easily get that at any time.

Honestly, I don't think its a good idea for Sony to do a price drop. Simply because they can't afford it. At this rate Sony will continue to sell a decent amount of units and eventually get out of the red. At this price they'll never be number one or even number two in world wide sales but not losing money is the best way to go at this rate. And I know selling more consoles will sell more games, but I don't think people will buy enough new games to make up for the $100 price drop.

Sony just better hope Nintendo and Microsoft don't do price drops. Which they can most likely afford to do.

The point i'm making is that Sony as a big corporation does not have the same restrictions as an individual. The can raise money in many different ways to fund such a price  drop. they can go to the bank or the capital markets, investment banks, government, shareholders etc.

It is not a matter if they can afford it or not, of course they can since the only constraint is cash (i.e. Amazon which made it's first profit several years after it launched and yet is could still "afford" low sale prices).

The only thing Sony will need to consider is if it will be profitable in the future. (i.e. get the money back later through software/accessories)

 



PSN ID: T_Gears

End of 2009 ltd sales:

Wii = 67-68m

X360 = 38-39m

PS3 = 34-35m

Prediction: The PS3 will surpass the 360 on weekly sales after it drops to $299 on all regular weeks (no big releases).