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nightsurge on 29 May 2009
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WereKitten said:
nightsurge said:

If by crossing the hilltop of profitiability you mean still losing $50 per machine then you're right.

Also, Sony is still predicting another 1 Billion loss for next year, so losses involved with currency, the PS brand, and other areas of their business are still very much a big issue.

Oh and isn't Sony cutting their suppliers in half?  Won't that cause a lot of strain on the others and possibly have quite a negative affect?

And Kingdom Hearts 3 won't matter.  It is one game.  One game doesn't change the game just like 100 games haven't changed the situation this generation.

Losing about $40 per console on the $399 models, and thus profiting a few tens dollars per console on the $499 models. Overall they are crossing into profitability, considering that launch PS3 did lose them more than $200 each. The software and accessories bring it all definitely in the black.

And again, how would cutting the PS3 life short help them financially? What has been spent in R&D in the past is not going to come back. They would be only losing revenue at this point.

Now if you said that they might want to not take as bold a step with the PS4, that might make more sense. But it's the lifespan of the PS3 we're talking of, and it's in the interest of Sony and its investors if it's as long as possible.

I was under the impression that the $500 models were a holiday special edition only.... do they still sell these as I never see any at Wal-Marts or Best Buys or Game Stops.

Also, Sony really has no control over when the PS3's life will end.  All they can do is advertise and hope it gains enough to make it past the 360 before the next generation, which has a slim to none chance of happening.  The consumers and thus retailers decide when a product is stopped, as we've already gone over this.  Sony won't want to end the PS3's life early, but if it isn't selling and the NextBox and Wii 2 are out, then it's bye bye PS3.  That is unless Sony kills their hopes for the next generation by postponing the PS4 for multiple years or even all-together for a generation.