Arius Dion said:
thelifatree said:
Arius Dion said:
I still don't get the whole PS3 shortages thing. It ain't like the system is doing Wii like numbers. Wth is up with that? |
Well, Sony is still losing money on each PS3 is being sold. Sony can make a given amount of PS3's for a given cost. If they increase production, it increase costs which increases losses for sony.
Edit below, is the reasoning there would be shortages... But, it is always possible sony is lying about shortages. But below is something about economics.
here's something I copied from somewhere which is basically correct.
Why didn't Sony increase production of PS3 before FF13 and GOW3?"
That would be a good point if it made any sense whatsoever.
This will likely go over your head, but there's this thing. It's called 'the law of supply'. And what it means is that at a given price point, Sony can make a given number of PS3s at a given speed. It's not a matter of pushing some button that magically produces PS3s out of thin air and instantly transports them to store shelves near you. Increasing production means increasing costs, and considering that Sony already loses money on every PS3 sold, increased costs would mean that they would have to raise the price. Or eat an even bigger loss.
"Did they honestly didn't see shortage happening?"
It's not a matter of seeing shortages happening, it's a matter of fundamental economic principles. The PS3 costs $300. That pricepoint limits how many consoles Sony, or any other company for that matter, can produce, how fast, and how efficiently they can ship them. Companies always produce the maximum number of units possible at the available price point. Any more than that is a physical impossibility.
"If they didn't they they are plain and simple are stupid and they should fire those responsible."
Yes, the smart move here would clearly be to balloon production costs to absurd levels, and then, even though Sony is already losing money, not pass *any* of those increased costs to the consumer.
"Its basic common sense."
No, basic common sense says 'PS3s are not being manufactured by magical elves at the North Pole, so making more of them would involve raising production costs, which raises the price'.
"If you have a big heavy hitter make sure you have enough consoles to meet demand"
And they could very easily make sure they have enough consoles to meet demand -- by raising the price. Higher price means they can supply more of them while consumers demand less of them. Presto, no more shortages.
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So, basically Sony is creating the shortage by purposefully limiting supply in order to save themselves money?
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They are not creating the shortage purposefully more of they made a mistake. My guess is Sony estimated the demand for PS3, so the manufacturing processes were created for their estimation. Because if they manufacture too many it's inefficent in labor, etc. But the demand was more than they thought it was. So they are kind of in a screwed position.
But, what I'm saying is just theory from my classes in college and boredom to analyze. It could be, the Sony CEO was taking a crap, and decided "hey! lets make a shortage!" :P
And I don't want to sound like I know everything, but I could be wrong. That's just what I got out of it.
