[EurogamerDF] Orbis Unmasked: what to expect from the next-gen PlayStation

[Wh1pL4shL1ve_007]

enditall727 said:

Wh1pL4shL1ve_007 said:

enditall727 said:
I also read somewhere that it costed Nintendo like $100 to make the 3DS when it was launched at $250(profitting) but when they dropped the retail price to $170 they were losing money each sale so R&D(manufacturing and getting it into retailers hands) has to cost anywhere from $70 to $140

so lets just take $100(for R&D) and add that to how much it costs Sony to assemble the PS4

This is why i always said that i wanted Sony to make a $500 console(including R&D) and sell it at $400(losing $100 each PS4 sale) at launch

The profits lines will be met much quicker than when PS3 was supposed to hit the profit line. PS4 will be cheap and will BOOM in all regions at that $399 price point from jump so they wont have worry about every developer and all the fans crying for a $100 price drop(basically widening the the time it would take to reach profit lines and makeing them take losses for a much longer time than originally expected)

it will be cheap enough so the kids can get PS4s and the games will sell from jump which will offset a lot of those losses

Assuming that the first 6 months or even a year that they will take a loss on the Ps4. Do you think Sony is willing to discourage investors by showing them 2-4 quarter losses in a row yet again? Especially knowing that it took Sony to sell one of their major HQs just to make a profit this quarter since 2008? 

This is what Sony does. These investors know how the business works and they know how competitive these markets are. They should be able to do it. It will be a lot easier to tell someone that a $500 PlayStation being sold at $400(losing $100 from jump) will be a success and will profit in a short time rather than telling them that an $800 PlayStation being priced at $600(losing $200 from jump) will be a success and will profit in a short time.

The thing is I dont even know what "short time" is. Plus did you even take in to account the price cuts Sony has to make for the Ps4. I mean what if MS cuts 720's price to undermine Ps4's profitability by forcing Sony to cut its price? Did you think about that?

These "investors" are sick of years and years of Sony being on the red and now, this quarter, they will see the light of profitability since 2008. And thats not even because of Sony's products but because it had to sell one of its major HQs. Do you think these investors want to see another playstation console starting at such a big loss after the Ps3?  

Knowing that each Ps3 console sold at a loss till mid 2010. Thats 4.5 years of per unit loss starting with a 200$ per loss console. Assuming that Sony did sell Ps4 at 100$ loss. Then a rough estimation of 2.25 years will take before Sony again regains profitability per unit sold for Ps4. And this is not even taking in to consideration that the Playstation brand since Ps3 has not seen a single cent of net profit. (Although it is highly likely that the Ps3 ate up all the net profit PsX and Ps2 made).