| Wlakiz said: Currency shouldn't matter. If they are making a loss in UAE, then ship less consoles to UAE and more to 'profitable' countries like US where there is an excess demand. USA ISN'T a profitable country for hardware. The currency rate means that Japan loses 10 cents for every dollar. 30$ loss on a 120g, just for what the money is actually worth. That is on top of the loss they already take for the cost of hardware. Shipping more consoles to a country doesn't increase the number of buyers for the console or the number of consoles sold. Yes there is excess demand on the 120g in the US, but there are still plenty of 250g ps3s lying around. Which proves once again that the concept of demand is beyond you. Price has an impact on how many people buy a console, and phasing out the cheaper console makes that group of consumers smaller, which, is idiotic if you make a huge profit on the games. What puzzles me and source of my skepticism to your position is that if they can technically be making a profit right now, why are they sticking to a 6cent loss/dollar. My explanation is that the COP of both SKU is currently still exceeding the price of sale. Your explanation means that the 250g costs at least 350.01$ to make, right? That would be a loss. Just follow my logic for a moment. The difference between HDD costs is barely 8$ on a mass production scale. That would mean the ps3 120g would have to cost Sony 342.01$ But the 120g costed 336 in loss as of 6 months ago. Do you think the cost has actually gone up? What you don't understand is that there isn't a 1:1 distribution of the console sales. There are more 120s sold than 250s. That is the basis of demand. THe cheaper version of a product sells more. Now, if, out of 4 sales, 3 are 120s, then they are losing, say, 26$+26+26+n. The 6 cents per dollar on those consoles comes out to 75$. Set the equation to 0 and you get 26+26+26+n=75.....78+n=75....n, being the profit on a 250g console, we get 3$. This is a simple explanation for you. Then, you have to take into account that roughly 45% of ps3s sold lose 10+cents on the dollar. In england and Euro countries they make about 20 cents on the dollar. If you can be making a profit, why don't you make a profit? They are making a profit, as of last quarter. In any case, like you said, it is complicated, and I don't think we can come up with a resolution unless we see an updated Bill of Order on both SKUs. Sure then. I understand that you need definitive proof. I'm the same way. When I take a shower, I will refuse to believe the water is hot until i get a thermometer in there. I am not sure what kind of 'reward' you were expecting in any topic debates but for what it's worth, my opinon did shift a bit during this discussion. The reward is helping you understand the concept. But, from here on out, I'm just going to wait for someone else to explain it to you, or for official numbers to come out. Finally, my time invested on a forum is proportional to the number of topics I participate. For vgchartz, I only posted on this thread, which only prompts me to check back once in a while.. on other forums, I participate in mutiple debates so I check back more often on those. |
