radishhead said:
Train wreck said:
Hyruken said:
The thing is Sony couldn't afford a Vita price cut even if they wanted to. Look at what happened to Nintendo when they cut. Huge losses. But they can handle those loses due to making so much profit this gen.
Sony on the other hand are bleading heavy losses and haven't posted a profit in almost half a decade.
In a month or so is when the Vita sales will come up against the 3ds price cut numbers. That is when the gap will start looking huge between the two.
The only thing Sony can do is try and get some popular games out and fast. |
You sir are wrong on pretty much all accounts.
"Sony cant afford price cuts"
Sony has multiple products that cost more that $249/299, their tv's , cameras, laptops, cell phones, imaging equipment, the vita is probably one of the cheapest full line products they make, along with psp. They change price all the time and sell in greater volume than the vita will for its first couple years. The company has close to $13 Billion dollars in cash and short term paper, they can do a price cut if they want.
"Look at what happened to Nintendo when they cut. Huge Losses"
Nintendo was (is) bleeding money because of 1. currency 2. the Wii and DS had drastic y/y declines in hardware sales, which means lower software sales, which means lower overall profit. The price of the 3DS effect to nintendo's overall bottom line is not the same as Vita to Sony because Sony is a conglomerate, Nintendo is not, they need to maintain marketshare as its the only business they are in.
"Sony on the other hand are bleeding heavy losses and havent posted a profit in almost half a decade"
The division that houses the playstation brand (along with Viao) was profitable last year (March 2011) and there were projecting profits until June of last year because of flooding in Thailand, the japanese earthquake, exiting the LCD business.
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I agree with some of what you've said, but Sony can't really afford a price cut since as you mentioned, their gaming division is their only proitable one - what would happen if they started losing money on that one too? It's best to keep that one profitble, I think :p
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Again Sony is a congomlerate, they have 5 division (Pictures, Music, Financial services, Consumer products and professional services). Last year of those 5 divisons all 5 are profitable on an operating income basis. On a net income basis 3 of the 5 were profitable (Pictures, Music and Financial services). For this year that ends in March, the same thing is likely to happen, profitable on 3, losses on two. Their TV business has lost about 18 billion dollars since 2004 and is the biggest driver of their net income losses, second most likely being the Yen's strength. Outside of 2006 and 2007, the playstation division contributes little when it comes to losses or gains to overall revenue and profits (losses), their income is in line other division at the end of the year
