Theory on how the PS4 is stronger AND cheaper.

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ethomaz said:

ironmanDX said:
Theory? The fact Sony got rid of the PsEye to reduce the cost by $100 is why it's cheap.

lol PSEye cost $20-30... it will be sold at $60 with profit.

Makes sense please.

My theory? Xbone is having production issues due the big and complex APU... it is likd $80-90 PS4 APU vs. $140-160 Xbone APU.

PS. If the productions issues with yields are so high the APU can cost over $200.

What's unknown with PS4 is how much of a loss they are taking with $399 so an auto-bundled Eye with every PS4 at launch would have been undertaken so that Sony could make a slight profit or almost no loss. So if for instance PS4 costs $420 and Eye costs $20, that's a cost to Sony of $440. Add to that a $20 retailer mark up and that's $460. Sony might as well slap $40 profit margin on there and be making decent money from of PS4 hardware right out of the gate. However it's pretty obvious that as of now Sony can't sell an Eye bundle for $499 without sweetening the pot with a game, at least.

I actually think if Sony had a choice between a loss making $399 console without Eye, and a profit making $499 console with Eye they made the wrong choice by going the $399 route. On a head to head price basis, outside of the UK and USA, PS4 will outcompete Xb One. So $499 was safe. However I think Sony was predicting MS would enter the market at $399 so they decided they needed to enter at $399 too. I think the bean counters at Sony are a bit miffed that they aren;t entering the market at $499.

Of course the other calculus is WiiU. Sony and MS will still be wary of Wii U even though it's tanking at the moment. Sony may have decided they didn't want to give WiiU a $150 price lead, so part of the $399 decision may indeed be to not be too far away from Wii U. Who's to say that Wii U wouldn't have seen a substantial lift in sales if PS4 and Xb One were both announced at $499? I think it's entirely possible that Wii U would have got a sustained lift in Sales, and potentially sold very well this holidays at a $150 price differential.