Vetteman94 said:
jarrod said:
Vetteman94 said:
jarrod said:
Vetteman94 said:
jarrod said:
Vetteman94 said:
jarrod said:
psrock said:
I think people have learned their lessons though.
Only thing, MS is not going to let their lead vanish so easily, I expect a big price war next year, but the scariest thing for the 360 is very simple :
$199 PS3 |
That would also be the scariest thing to SCE's bottom line. With all the "profitability in 2010" talk we're hearing, I doubt we'll see another $100 loss leading drop next year... maybe $50, and that's even a big maybe. Expect more value-added moves next fall instead (HDD upgrades, software bundles, Swand bundle, etc). I think we'll see the same for Nintendo (NSMBundle?), and maybe even Microsoft (ie: Arcade phased out, $199 Elite).
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One thing alot of people seem to be confusing is, when they say profitability 2010, they mean the entire PS division, which includes PS2, PSP and software sales for all 3 consoles. And they will easily reach that.
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PS2's fallen off and PSP's a dubious success at best (decent(ish) hardware sales, software sales suck, GO's an utter flop). They've never been able to pull up PS3 before, they're not going to much difference in the future. If we get a $199 PS3 next year, that generational deficit's easily going to pass $6B.
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How do you know that for sure? Last numbers I remember for the PS3 was they were only losing 10% of the price. Which would be only about $30. Could they make it even cheaper to make, absoluely. I imagine they are working on that as we speak. Plus with alot of major software coming up for the PS3, they should have to problems getting moving into the black for the year of 2010.
As for your other comments, PSP is more than a dubious success, despite the software sales problem they have due to piracy. PSP Go hasnt even been out long enough to call it a flop, they could drop the price and sales could skyrocket. And sure the PS2 is dropping in sales but everything it sells is basically pure profit for Sony.
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Well, since sourcing all the rage how about providing one for that $30 loss figure?
DS has more widespread software piracy than PSP btw. It's also easier to pirate (small ROMs, no firmware trickery).
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http://www.engadget.com/2009/07/31/ps3-manufacturing-costs-down-70-percent-strange-it-doesnt-fee/
The $30 was just really an estimate on my part after getting the numbers from the source above. If you consider that they still have to include a controller, wires and packaging. and sell it to a retailer so they can make a small profit than $30 seems pretty realistic.
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That article cites just a 70% reduction in production cost from launch. I can't even fathom how you're pulling "$30 loss" from it?
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Originally the PS3 cost about $800 to manufacture, which would bring its current manufacturing cost to about $240. Now adding in all of the things I mentioned like controller, wires, the box and shipping. Would put the console close to about $300 total cost to Sony. Now I am not sure what the markup is on consoles but some members on this website have said its about 10%. If that number is right then retailers are buying the PS3 at about $270, which would mean about $30 loss.
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