butcherknife on 29 November 2012
| superchunk said: To illustrate further. Let's pretend the $250 PS3 has a $80 margin of profit. If you take $100 off the price, then Sony is losing $20 per console. Sure they'll gain sales, but they are doing so at a loss as well as lowering the perceived value to consumers. Then let's consider that they instead add in two free $60 games. Those games have a real cost. That cost should be no more than $20 each. So now, they've increased the cost of the new bundle from (250-80) $170, to $210. They are still selling it for $250. With the two games the new margin is still a profit of $40 vs a loss of $20. Additionally, they have increased the perceived value of the console to consumers as well as increased sales. |
OK...That makes sense. It seems a bit limiting too though...not every consumer that wants a PS Vita also wants those two particular games.
