Chark said:
Andrespetmonkey said:
Chark said:
Seems fake, but would be interesting to see a cell operating on it. Sony has done an intersecting job getting developers to code for the PS3(mostly through necessity because of install base).
Since it was brought up, Vita's profitability, I have to side with Logic this time. I have yet to see any good argument that Vita is being sold at a loss. Those articles written from that Rueters interview are bunk and their claims of the Vita selling at a loss are just short of lying. That was never said by Sony and that question wasn't asked in that interview. It was just a shady attempt at feeding off hate to get hits. The cost of production breakdown is very relevant to determining Vita's profitability, and if you do some math it would be hard bent to say the 3G model wasn't selling for a profit, the Wifi on the other hand could be selling at a profit or loss. What I conclude is from hardware alone the number is insignificant at a loss or at a profit, which is a great positioning for a console. Through software and accessaries the Vita is s profit maker for Sony. |
The components in the Vita are estimated to cost around $160 (which doesn't include the costs of putting the parts together btw), now add manufacturing costs, the retailers cut, the shipping costs etc.and that price goes up quite a bit. And that's just the cost on single units. For the system as a whole you've got the R&D cost, which is huge (new OS + mass produced OLED screens added to this cost greatly I imagine), marketing and licensing.
Kaz Hirai himself said that the Vita will be profitable in 3 years.
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I understand the additional costs on top of the $160. The difficulty is in determining the extra costs. With room for $90 to $140 to make up those costs why wouldn't Vita be selling at a profit? To compare, the 3DS is confirmed selling at a loss where it has $70 of room. If the Vita was selling at a loss then the 3DS is selling at atleast a $70 loss. Now this is assumng both Nintendo and Sony have exact costs to bring their consoles to consumers, they are most likely the same and if not very similar. Do you believe the 3DS is selling at such a great loss? How could they regain profitabilty any time soon if so?
The interview with Kaz is exactly what I was refering to as being misinformation. Kaz said that they exoect the Vita to be profitable in the body of Vita sales after 3 years. Which means that it will reach return on investment then, it has nothing to do with individual hardware sales. Return on investment is where R&D costs are applied, please do not attempt to misconstrue them with the additional costs on top of the $160.
Oni-Link, you must know by now that the analysts in your link that speak of a $65 loss per sale made that prediction before the cost of parts was revealed. That information is out of date and you shoukd stop using it. If I heard correctly most believed the Vita hardware cost +$200. Also since you brough the Rueters interview uo as well I would like to request you refrain from using it outside of the use to indicate when Sony projects return on investment for the Vita.
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But to a business, R&D cost is considered into the cost of selling a product. Also continued R&D is factored in as they continue to improve the internal arcitecture to reduce costs. This is how a business thinks. Also the cost of storage etc. Remember the retailer takes a cut out of the MSRP, and on many products that cut ranges from 30%-60%, though it is said the cut is a lot smaller on consoles.
The reason that retailers will take a smaller cut on consoles, is the hopes that the consumers will buy games for the console from them where they receive a much higher percentage of the MSRP.
