Sony's competitive position

[dallas]

Dodece said:

dallas said:

Sony is currently facing a loss in profits in a fee divisions as well as overall, and its future success won't be stopped at all, here's why

 

1. PS Vita - the vita allows for online sales which generate greater profit margin, and another platform to port games onto, thus adding some revenue but little cost.  Eventually, I think that the vita will rival the 3ds in sales but it will take some time, just like the ps3 was wanting to match the Xbox 

2. Bluray- the ps4 won't be hampered by being so overpriced like the ps3 was, heck the 720 will have the same Bluray reading capability and thus a more similar cost than we had this generation.  But the 720 having Bluray capability means that more blu players are out there, and we will have greater sales for them, increasing blu marketshare.  Also, Microsoft will be paying royalties for the Bluray since its a Sony ip design.

3. Weaker msft and ninty???  -  Microsoft is growing much more slowly than it was 7 or 8 years ago, so they won't beagle to just pour money into projects like they used to which has always been a strength for them.  Nintendo isn't expected to have a great product for next generation either but this is admittedly a lot of speculation on my part.  If anybody knows anything said about how good of a product the wiiU is supposed to be or estimates of future sales have been made, let me know...

4. Super slim ps3- the new upcoming super slim ps3 will have a lower manufacturing cost and be morel pilar in places like Japan that value space, as well as serve as Sony's product for the second and third world for 6 years or more.  This new model will spur greater sales down the line.

1. Unless the platform flops. The hard copies of games don't sell, or digital sales do not justify the operating budget. The cost isn't so small if things go badly, and Sony has to incur losses. The best possible scenario isn't the only scenario there is where the Vita is concerned. There just aren't enough units in the hands of consumers to be thinking the product is in any way locked in for the future. I would also like to say don't sight the PS3 as a success story.  The PS3 didn't gain its traction on merit alone. It gained traction, because Sony was willing to lose a shit load of money.

2. Did I miss something, and Microsoft announced they were using BluRay. I am going to point something out now, and it may come as a bit of a shock to you. It doesn't actually net Sony much if anything. Others have pointed out that it is a association, but what others haven't pointed out is that Sony was making money off of the DVD license in the 360. So its just trading one royalty for another. Anyway speaking to market share, and the licensing fees. The problem with BluRay is the price point. People still buy DVDs, because they are cheaper. To really gain traction the cost of BluRay discs need to go down, and if the prices go down then the licensing fees will have to go down as well. Over time the profit per disc is going to go down for Sony, and with digital distribution, and streaming really taking off. The market for discs in general is probably going to suffer in the long run.

3. I see no signs of Microsoft running out of money any time soon, and I haven't heard of Microsoft running at a loss well ever. They seem to have a lot of cash to burn, and this is Microsoft they love to corner markets for maximum exploitation. As for Nintendo I swear somebody told me they print money. Nintendo does have the resources to attack from many angles that are not specifically hardware oriented. It may be atypical of them, but they could go on a developer buying spree, or start charging less for their games. Depriving Sony of games for their platform, or making Sony's platform look like a ripoff.

4. I have explained this before, and I suppose I need to explain it again. Most consoles in the second or third world are purchases through the grey market. Not through the official channel, because in the case of Sony the official channel costs much more. When a local can buy a imported model for three hundred dollars less then what is available at retail. They will overwhelmingly tend towards saving money over a nearly worthless warranty. Anyway importing seems to be the wave of the future instead of localization in second and third world markets. Which doesn't really favor one manufacturer over another.

 

1.i ddon't expect the Vita to be either a huge success or flop, buddy and again you keep thinking in extremes here.  I personally expect it to do only sslightly or somewhat better than the psp did in comparison to the ds this generation.  But even if it achieves that, the things that iI've mentioned wwouldn't be contradicted or invalidated at all.

2. No, the bBluray thing is an assumption on my part, however msft is positioning the 360 as a mmedia device and iI expect them to try to improve on that next gen.  LOL, perhaps you think that they will just use DVDs again next gen, well that wwouldn't work, as next gen's games will probably be too bbig for DVDs and msft would be stuck with a sorry product.

3. I never made my statement so extreme as to say that Microsoft would be running out of money, but rather said/meant that the days of msft living large seem to be over.  It isn't growing and competitors are slowly stealing their market base and I can get into this further if you wish, but for now, realize that I simply said that msft's financial dominance that we saw this gen wouldn't apply to the same degree in the timeframe that we will see in the next gen.
4. Ok, well if you remove cost from the manufactufacturer or source you should remove cost to the consumer all else equal.  I mean the distributor wouldn't be taking in more of its share in a scenario of a die shrink and slimmer model so I don't see how your point really makes sense,  dodece