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oni-link on 01 November 2012
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Troll_Whisperer said:
oni-link said:
Troll_Whisperer said:
oni-link said:
Squall_Leonhart said:
I have a Vita and love it but I'm inclined to believe that this is more of a desperate measure in order for the handheld to have a better holiday season than it otherwise would to make it look better for their investors!

As long as the company still make a profit on the hardware and game sales then I don't see a problem in doing this

 

What's all this bull about the Vita making a profit? Kaz himself said the system won't be profitable for 3 years. Numerous sites and analyst had already said the system is a bleeder for Sony's bottom line; such pipe dreams isn't gonna change the fact that Vita is losing money for Sony.   Anyways, this is a good move that is coming 6 months too late!!! Hopefully this helps sales as the system sales numbers so far are quite atrocious!!!  If a price-cut doesn't help the Vita, I don't know what will?

I think what he said is that it would take Vita three years to be profitable overall. This is,recouping all losses from R&D, marketing, etc. They mentioned that the Vita business should be profitable from the start.

Although, consideing the low SW and accessory sales, they may have missed their predictions and may still lose money on it. And, in all probablity, it won't be an overall profitable venture by late 2014. Hopefully it will be LT. The fact that it's made from off-the-shelf cell phone components that go in price very rapidly should help this cause.

I don't have the link of Kaz saying it will be profitable from the start.  But I do have numerous sites, analyst quotes, and even a link of Kaz statements saying how it's a bleeder and expects it to be profitable in 3 years.  It's no surprise if it is, as HISTORY shows that Sony always loses money on hardware in order to sell and provide top-tier consoles.  If it was profitting, wouldn't you say they should have cut the Vita's price by now(seeing how abysmal it'sales are) and offer downloadable content to early adopters?  That is the only logical thing to do since the Vita has been out anywhere between 8-11 months and barely managing to sell ~3.1 mil units to the 3DS ~22-23 mil units (in 20 months). Another thing to consider is that the Vita is using parts that are way more expensive and newer(ARM CORTEX A-9, PowerVR Series5XT SGXMP, 512MB and 128MB system and VRAM, 5" qHD OLED screen capacitive touchscreen, 1 rear touchpad.) than the 3DS (dual-core ARM11, PICA200, 128MB shared FCRAM and 6MB eDRAM, 3.5"Parallax Barrier LCD x1 + 3"QVGA LCD resistive touchscreen x1) and the 3DS sold at a loss until 4 months ago.  Overwhelming logic and evidence suggest that the PSV even for a bit is losing $$ on each hardware sold. 

Don't take any offense for this please, but writing everything in bold is a tad annoying to the eye.

Anyway, I'm sure Vita loses money on HW. What they meant, probably, is that with profits from 3G plans, memory cards and accessories and SW, they would make up for that loss and turn small profits. Then, in about three years, they would manage to be a profitable venture overall (recouping all Vita related expenses) from these profits.

Now, since the Vita's selling like shit, and they don't sell nearly as much SW or as many 3G plans and accessories as they expected, I agree that it's probably still not turning a profit yet, though the loss must be in any case small (we just got the financials and the gaming business is profitable overall).

no offense just ask nice and I will reply in kind.