Wii U vs PS4 vs Xbox One FULL SPECS (January 24, 2014)

[Viper1]

Andrespetmonkey said:

Viper1 said:

You are trivializing how hard it is to regain $1 billion on hardware losses.   If it were that easy, Why don't Sony and MS chop off $100 from their consoles right now? Because they don't need to, they can gain a profit AND sell their system for a price that'll sell well. The loses on the console at the start is so they can make it as powerful as possible but still try and sell it at a reasoble price, as you know.

I wouldn't say I'm trivialising, I'm simplifying. You haven't countered my point, do you think they can't make it back through software in a year? Do you think a year is too long? 

And your quote, "unless we are talking PS3 scale money" is exactly what I talked about in the rest of my post.  Why didn't you address that?  Because we aren't talking about a PS3-scale loss. A $100 loss on the PS4 that'll most likely use slightly modified "off-the-shelf" parts is not on the same scale as PS3's situation. That was pulled from the middle of my post.

 

 

You didn't read my full post on the foreign exchange situation.   It won't take a console liek the PS3 (with CELL and Blu-ray eating  up heavy R&D and production costs) but the simple strengthening of the Yen to foreign curencies mean to make the same profit margin, or keep the margin of loss the same, will require a far higher price now than it did in 2006.

I'll do it again for you.

PS3 was ¥59,980 which was $558 USD in 2006.   Today, that same ¥59,980 is now $766 USD.   Obviously they can reduce the cost of the PS4 because it won't have Blu-Ray or CELL liek costs associated with it.   So we can knock that down to as low as ¥39,980.   That's $510 USD today.    Do you think Sony can sell a console with a base price of $500 next year?    If it's priced at ¥59,980, you'll either have a $750 console or losses in the foreigns markets even greater than PS3 scale.

And about that $1 billion loss.   If Sony sells  25 million games in that time frame.  5 million are 1st party.   That's about a little more than half gained back.   You can't make the other half back in peripherals and F2P will not even begin to put a dent into that figure.