platformmaster918 said:
osed125 said:
platformmaster918 said:
osed125 said:
platformmaster918 said:
Wagram said:
Never understood selling a product at a loss to recoup through software or accessories. I don't believe i've ever seen that as a successful viable strategy. |
PS1 and 2 say hi
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Both did lose money during the first year, the following years were profitable. Also there's the fact that Sony other divisions were extremely profitable at the time (especially TVs which is now in a very difficult position). They could take the losses very easily, and one of the reasons they decided to go the same route with the PS3 (and obviously didn't worked for them).
Loosing money on hardware is a very risky business decision, companies try to avoid as much as they can, but is something they most do in order to have an attractive price point.
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unfotuneatly people don't seem to realize what a deal they're getting on game systems even when you sell them at a loss. If you went out and tried to build these things you would have to spend over $600 easily (especially considering they get significantly more performance out of those same components). I think they should start out at $500 since most people wait for the first pricedrop and every pricedrop gives them a sales boost. Why start at $400 when sales will drop off quick when you can start at $500 and cut price to $450 the following Fall to give yourself a boost. Obviously it gets to a point where this gets stupid and no one would start at $700 or whatever but I'm saying that $500 can be accepted by hardcore fans and make a profit hopefully for a little and then you just have to hold out for long enough to not have to have an ambassador program. In the end as WiiU and Vita have shown us you just gotta create an enticing product. WiiU is lower than the other next gen systems most likely but it's not selling because it looks like a 7th gen console and people just aren't excited.
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Selling the system at a high price just for your fanbase is a double edge sword. How long can your fanbase satisfy your sales? And even the most hardcore fans can't simple pay $500 because of money issues or other stuff. That didn't worked with the PS3 (and that was worst because they were already taken a $300 loss on every console) and it probably won't work now.
If you don't have good sales at the beginning, you're not going to get support, no support = no sales. Unless you do a very risky price cut (like Nintendo did with the 3DS) most consoles don't have an official price reduction until their first or one and a half year on the market. Sony had a hell of time restoring the PS3, not sure if they can do that again.
Companies need to attract every fanbase from the beginning, if they don't it will result in another PS3 all over again, which can't be good for Sony.
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Yeah if sales are deplorable I don't think it'll be good but if PS3 can get support PS4 will. I was mainly talking about how they could actually make money from the start because as you said they were already taking a huge loss with PS3 and still had to cut price early by big margins $100 instead of $50).
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All first Playstation price cuts are by $100, and the first PS3 first price cut (November 2007, 12 months after launch) wasn't much different in timeframe than either the PS1 or PS2.
PS1 price was slashed $100 8 months after launch, PS2 price was slashed $100 19 months after launch. 13 months is the average time it takes for $100 price cut on a Playstation home console, 13 and a half if you don't include the PS3.
http://vgsales.wikia.com/wiki/Price_cuts
