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JayWood2010 said:
Shinobi-san said:

I am speaking about the base price of the consoles. When Sony and MS speak about losses/margins etc. they are talking about the officially released price.

We dont know what the margins is on the 450 bundle.


That helps because im talking about both models.  $400 is the entry fee but with a $50 increase it would be a $450 entry fee of course.

Anyways I would assume that the loss is about the same with the camera included though I dont know that for a fact.  

I'm sorry but your whole way of looking at this pricing situation seems very simplistic to me, no offense.

You can't just say that if Sony raised the price 50-100$ that they'd suddenly make more profit, sure if all they'd make money of was the console itself then that might be right but that really isn't the case.

Let's look at what Sony is really making money of with this console, there is the console itself then the accessories, games and subscriptions. Now I think it is very safe to assume that Sony would sell less consoles if they priced the console higher, so that already would mean less games, subscriptions and accessories sold. But even the guys that still buy the console, do you think the will buy the same amount of games with the PS4 if they've already paid 500$ for the console than they would've bought if the console was cheaper? I don't think they would.

We could also go into how Sony would probably need to pack in more with the console if they sold it at a higher price and how economies of scale would come into play since Sony would probably produce less because of lowered demand, thus possibly raising the average cost of producing a PS4, but that would all be very speculative.

Fact is, just raising the price of a product like the PS4 and expecting bigger profits is really discounting alot of other factors that come in play with these consoles