TWRoO said:
Persistantthug said:
Joelcool7 said:
The industry cannot go fully digital for another two generations. If at all their are many reasons preventing a completely digital market. First physical copies still outsell digital by a landslide Go showed that a digital platform is not ready for market.
A new problem has shown up. At least here in Canada internet providers are now charging by the amount of bandwidth you use. The amount of content you load example now my internet is limited to 150 gig monthly. But word has it plans will be reduced further where a basic plan could be only 50gig.
So if other providers do this. How many games could you download each month without getting dined. Now lets say out use Cloud and streaming well you still couldn't play a shit load with a 50gig plan.
Now you also have retailers they will fight tooth and nail next generation to maintain competitive prices which will keep consumers in |
You, Joelcool7, should get a gold star, because you seem to understand that, for the most part, RETAIL controls the distribution of game consoles.
Without retail, people won't see or buy said console, and because of THE RAZOR BLADE BUSINESS MODEL (people should look this up if they don't understand what this is), without Software to sell,Retail won't put said console on their shelves.
PSP GO = Failure
ONLIVE's Console = Failure (In America, I guarantee you've never ever seen one in any major chain retailer)
Brick & Mortar Retail is very important to consoles....very
Without them, You can have no successful console
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While I am also on your side of the argument. The razor blade business model would not result in retailers losing money by selling hardware only... it's Sony and Microsoft (and currently Nintendo with 3DS) that lose out in that model. I'm not sure on the exact prices retailers pay for consoles, but I think in the UK the Wii was originally bought for about £110-120, and sold for £180... now 17.5% of that 180 went to VAT, which brings the money you give to the retailer down to £135, still a profit of £15-25 per console.
Those figures are all changed now of course as the Wii went up to £200 RRP before being price cut a couple of times in the last year (I think it may be at £130 or 150 now, though some retailers sell them for less) that and VAT is now 20%, but the principle is still the same... retailers do make money by selling consoles.
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When the PS3 was launched, it cost Sony approx $850 to make, and they sold it to stores for approx $570 (give or take $20), and obviously we in America bought it for $600.
The only reason Best Buy would agree to such low margin is because of software that they could sell.
If Software is cut out of the loop, then PS3's would have cost us $1000+ at launch and we'd still be paying approx $400 today.
Basically, we'd be looking at a PSP GO situation (you ever wonder why PSP GO launched at $250 even though it was worse hardware than it's predecessor, and even though PSP 3000s were $169.99? This is it.)
No thanks.
