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GribbleGrunger said:
tokilamockingbrd said:


if they thought they could increase net income by dropping the price and producing more they would. They dont just look at what they are selling, they look at what they could be selling. If the cost of selling more(cost of increasing production and less income per sale) is less the income it would generate they would do that. This is the CFO's job. He gets paid millions to run the numbers on stuff like this (or at least manage the people running the numbers)

You're talking as if upping production would mean more consoles on shelves. I'm saying: If they can sell as many as they produce then they don't need to reduce the price.

Assuming PS4 production hasn't decreased compared to last year, it would seem your assumption that Sony can sell as many PS4's as it produces is flawed. PS4 is actually down YoY at this point (world wide), which means assuming supply is the same (probably more reliable) as last year, demand is down, hence any increase in production will mean more PS4's on shelves. And considering there were allegedly shortages in many markets this time last year, being down YoY really means demand has decreased quite a bit. 

With the new releases slated for March, PS4 may be up YoY for this month (world wide) but I doubt it will completely wipe out the ~250K deficit it has already built up compared to last year. But it would be cool if PS4 managed 10 million this month. It was 931K in March last year, so it is doable. 

The one place I think PS4 is guaranteed to be up YoY regardless of price is Japan. And when you consider that Japan will be helping PS4 look good for all months other than Feb, it further serves to mask the YoY drop in all other territories.

End of the day if Sony wants PS4 to grow this year compared to last year then a price cut will be essential. And I think Sony wants PS4 to increase in sales YoY.



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