logic56 said:
chicoedge said:
logic56 said:
chicoedge said:
Because the money is in software and accessories, not the system hardware. Sony is projecting that they will sell enough Vitas in 3 years so that the money they make from third party game sales, their own games and memory cards will be enough to turn a profit.
|
and you know this how??
|
I know this because I can read.
http://www.eurogamer.net/articles/2011-06-09-how-sony-will-offset-loss-making-vita
The price, cheaper than many expected for what is a powerful gaming handheld, is a deliberate attempt by Sony to broaden the Vita's appeal beyond core gamers and technology enthusiasts, Sony Computer Entertainment Europe boss Andrew House told Eurogamer yesterday at E3.
And it's willing to take a hit on each Vita sold because it reckons game sales will compensate.
"We have operated by and large very successfully around a model that works on what we call a blended margin," House said.
"We have very low margins or possibly negative margins on the hardware, offset by a much more attractive margin structure on software and peripherals. We'll manage the business very much in that same way for Vita."
Sony, which makes money on every game sold on its hardware by virtue of a license fee it charges publishers, is yet to announce how much Vita games will cost.
|
=/= selling hardware at loss
seems like house didn't know the specifics, "very low margins OR POSSIBLY negative margins"
the Vita from what we know is cheap to develop considering it's over the counter parts, that added on top of the mandatory propriety memory card there is no way they are losing money on each Vita sold and at worst they are breaking even, Vita isn't costing Sony anything, though it's not attributing much either at the moment
|
Well, House cannot provide a specific answer for all regions because financing is not equal in all markets. the Vita is considrably more expensive in the UK than the USA. It would not be surprising if Sony sold the Vita at a very low profit margin in some markets and at a loss in others. Be that as it may, the top guy in SCEE said that the hardware loss is offset by better margins on games and peripherals (including memory cards) which was my point.
