DerNebel said:
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 |
I did not say that they would or would not make more money that way. I said what Selnor said made sense. In reality we do not know which way would make more money than the other but if the past is any indication both Xbox and Playstation has lost more money than they have brought in in early years do to taking a loss on the console.
However Sony said this time around it is a small loss which could mean that one or two games could put them in the green again. As I really do not know the loss that they are taking other than "small" i cant comment on how much they need to sell afterwards or whether it is smart or not.
There is perks of being sold at a loss but it is also a gamble in other words. It is always ideal to make a profit immediately rather than lossing millions and having to gain it back.
