starcraft said:
Torillian said:
EaglesEye379 said:
One thing to keep in mind above all these projections is that Sony is already making a loss for every PS3 sold now and has already slashed nearly a third of its price. This will affect two things: a) Leeway for future price cuts, b) Revenue for future publishing and development.
Now, it is enjoying a hardware boost, but it really should be selling at the Wii levels to justify the price cuts financially and make Sony a profit. The PS3 business is clearly in the red, whilst the 360 business is finally yielding profits. That is why even a $50 price cut at this point will be quite hard for Sony to justify financially on their books. The 360 has had hardly any NA price cuts and is still enjoying a YOY install base growth rate and any further price cuts can push this to greater profits.
What Im saying in the end is that another $50 price cut for PS3 will give very little room for more in the future as they are already making a loss for each sold, and if the hardware boosts are not above current levels, it could even affect Sony's budget for future titles. |
PS3 was a loss last quarter that is true, but it wasn't enough to pull the other 2 systems' profits down and put the gaming devision into the red, so I would suggest that there weren't losing that much on each system. Therefore, stating for a fact that they are still losing money on each PS3 seems foolish because you don't know. We'll have a better idea on it when we get the new financial information for the last quarter. |
PS3 losses must still have been significant last reported quarter. Think about it, it was the holiday season. They shifted HUGE numbers of HIGHLY profitable PS2's, PSP and games for all three of their systems, not to mention peripherals.
|
Do you mean shifted as in produced? Or purchased? Because if you mean purchased, that doesn't = PS3 doesn't make profit. They probably are losing money on every console just like Microsoft. But as someone else mentioned, Sony is an electronic company....they are very good at cutting down on production costs. As that same person also mentioned, the 360 has a hot CPU...DVD which pretty much can't get any cheaper, and HDD which also can't get any cheaper. The PS3 has more new technology they can cut the price down on. I remember not too long ago that they were able to make the Blu-ray laser smaller...most likely cutting down on that price. I also remember them including the 45(or was it 65?)nm RSX or something like that in the 40GB.
I probably don't explain it very well, but Sony is spending time actually cutting down on hardware production costs...and MS doesn't seem to be doing a very good job of it.
