Pachter: PlayStation 3 Price Cut Likely This Week

[Vinniegambini]

thismeintiel said:

Vinniegambini said:

thismeintiel said:

Vinniegambini said:
No it won't.

- Sony expects to profit by year-end; it won't be able to do so by having a money losing venture once more in the gaming division
- PSVita already got a price cut - now selling at a loss
- PS3 is is profitable as of late 2010 - keep it that way.
- Price cut will come shortly once the PS4 is released; thus, one will see a price cut in FY14.

Got proof the Vita is selling at a loss?  Or that if Sony dropped the price of the PS3 to $199, even with the reductions in manufactoring due to the Super Slim, they would be selling it at a loss?  Didn't think so.

@ OP

I wouldn't be surprised to see this happen.  It would be just in time for all of their big exclusives to launch in a month and on.  Though, they may wait til the end of March, just to make their financials look even better in the profit department.

Have you done research on your end before commenting? Didn't think so

The Vita is selling at a loss as per an interview with Reuters Japan - http://www.examiner.com/article/sony-to-sell-playstation-vita-for-a-loss-profitable-3yrs

The loss will only worsen with the price cut; hence, my comment.

Furthermore, as per Reuteurs, Sony is relying heavily on PS3 to make up for the poor performance of its handheld division to posts profits - http://www.reuters.com/article/2012/09/20/us-sony-games-vita-idUSBRE88J07H20120920

As a result, if Sony drops the price of the PS3, the profit margin will be signifanctly lower - self explanatory.

Thxs.

Did you?  Or did you just find the most negative article that misinterpreted Kaz.  He was speaking of the whole venture, which includes R&D.  Here, I'll show you.

Scott Rhode, VP of SCEA: "I think that we’re going to do very well with this, and this price point – it’s also not going to lose money for us on day one. We’re going to do well with this thing." - Source

Shuhei Yoshida, President of Sony Computer Entertainment's Worldwide Studios: "For Vita, the price on performance was something we definitely wanted to hit, although we all agreed because we are PlayStation, people expect better graphics and prettier pictures, so we have all those things we wanted to achieve in terms of capabilities, but we capped our ambitions with a cost of goods target that we can profitably sell the hardware for $250.

To answer your question, we set out a goal: Yes, we're going to hit the $250 price, and no, we don't want to sell the hardware with a deficit. That's a goal we set out to do and I'm very happy we are achieving that." - Source

You should do more research.  Well, more than just the stuff that you like, because it paints Sony's situation in a bad light.  Thxs. 

The arguments and sources you have brought forth do not in any way counter any facts that I have presented you.

1. Is the PS Vita a money losing venture (selling at a loss)?

Yes. The PS Vita business will not contribute to Sony's profits until the 3rd year on the market, where it will have recouped its R&D costs. Until then, the PS Vita is a money losing venture.

2. Is the PS Vita hardware selling at a loss?

No at 250$ and provided me with quotes. *congrats*

My 1st post was the following ''PSVita already got a price cut - now selling at a loss''

Consequently, as the PS Vita hardware is no longer selling at the equivalent of 250$, and with low profit margins on hardware as with many electronics manfacturers, the 50$ price cut will now result in the PS Vita hardware to now sell at a loss.

How is this hard to grasp?

Sony is in a bad situtation much like Nintendo was with the 3DS previously. If the following makes you believe that I speak badly of Sony and present them in a negative way then that is your perrogative; however, I am not. Your personal vendetta against me is becoming quite tiresome.