Intrinsic on 23 September 2014
| small44 said: Ps4 market share is already so good |
True, but look at it this way. Speaking hypothetically;
- every console you sell = an average of $400 in gamer revenue per year (at least)
- at $400 you can sell 15M consoles per year = $6B in games sold revenue
- so you can settle for increasing your revenue/sales by $6B every year or,
- Cut the price to $350 so,
- at $350 you are seling 20M consoles per year = $8B in revenue
Selling more consoles means you make more money from the games those new console owners buy in addition to the games that all your exixting console owners are buying. If slashing the price can ensure that you will have a spike in sold consoles (which it always deos), then thats what they will do. Cause there is more money to be made from the games sold to an overall larger install base than from an increased profit margin on the actual hardware sold at a higher price.
