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Max King of the Wild on 09 May 2013
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osed125 said:
Max King of the Wild said:
osed125 said:
pezus said:
This could still mean that they'll be selling PS4 at a loss btw. Just that they don't expect to lose $400 on every PS4 like they did with PS3 . A $100 loss per PS4 and software that makes up for the initial loss is the way to go.

$100 loss? That's insane, you will need to sell 14 third party games or 4 first party games per console to recover that money (based on this, for first party it will be $27 per game and $7 for third party games (platform royalties)). Although I don't know who gets the $7 from "Returns", most likely the publisher, which in that case it will be 3 first party games.

Two words: Digital Distribution. (+ you aren't considering subscriptions or accessories.)

Couldn't find anything about the anatomy of a digital game, but with the current graph the only thing that is not present in digital games is the "Cost of goods" which is $4. Digital games are still $60 so I don't know where the extra money goes. Let's say that instead of $7 for third parties and $27 for first parties it will be $17 and $37.

So it will be 6 third party games or 3 games first party games, not that big of a difference. 

Accessories do play a big part of profit for gaming companies, but I don't know what is average the attach rate for new consoles and accessories. 

The cost they are saving on material, production, shipping, and retail cut are a lot greater than the cost of keeping up servers. Also, I wouldn't be surprised if Sony gets the retailer cut for 3rd part sales of DD. Another thing is Sony gets to dictate the price on their store and they tend to stay higher price longer than hard copies.

I also wouldn't be surprised if we see a some $70 games. (though I hope not)

Point? I think $100 is doable but that would be the max I'd expect.