Pachter says PS4 will sell at a small profit for Sony, GTTV

[binary solo]

TheJimbo1234 said:

binary solo said:

http://www.gametrailers.com/videos/1zpcu1/e3-2013-e3-2013--pachter-interview--stream-

I watched the interview yesterday and can't be bothered going through it again for the exact numbers. But he says their [virtual?] tear down puts manufacturing at about $325, add other costs to get the units to stores, and the marketing expenses I gues that might put the cost of PS4 up by about $25. Pachter thinks about $375 wholesale, with the retailer getting a $24 margin.

I know Pachter's predictions are often terrible, but I think his technical contacts making these estimates must be reasonably good at what they do. So I'm picking that this is a reasonable estimate. At worst his margin for errorprobably puts PS4 at break even for Sony. Which is still a really good starting point.

I haven't seen any teardown estimates for Xbone, but I'm picking Xbone must be making a small profit too, unless Kinect is a helluva expensive piece of kit.

Anyway, this bodes very well for Sony, and it means Sony will be in a position to drop the price any time after the first year on market and remain profitable per unit. Either to stay within a certain price diferential with Wii U, or to remain cheaper than Xbone, or to just drop the price on a pre-determined pricing schedule.

Sony is a greedy, evil corporation, we must not lose sight of that fact. But they are doing a damned good job of pretending to be our friend.

Sorry I am still an embed noob.

The hell?! Tin hat time already?

I find it to be a good default setting when it comes to any corporation, even moreso when it's a multinational. That way you're not surprised when they decide to shit on you. Sony has made many attempts to take a dump on consumers, they will again at some time in the future. Right now, the know they need the short attention span consumer to see Sony as their best friend. When it's profitable to be dismissive of conumer sentiment their attitude will change, kinda like Microsoft's attitude to the consumer with Xbone at the moment.