Xbox founder: PS4 wins the console war 'by a nose'

[SvennoJ]

JustBeingReal said:

PS4 was released to the market at production cost (it made a profit when a game was bought with it), Morpheus will be using the same business model as a console, release the hardware at either break even or a slight loss and make your money back with software sales and Sony will have game software specifically for Morpheus at launch and beyond.

 

The hmz-t3w can be had for a lot less than that now and it wasn't made in big quantities like Morpheus will be, which would drastically reduce the cost of production and materials for Sony.

I thought Morpheus had 2 panels, my mistake, but that just makes things cheaper still 1 panel is cheaper than 2 and reduces production time, because people don't have to spend time fiddling about getting 2 panels into the system.

Vita's lower resolution panel cost $50 for Sony, back in 2011, it's been 4 years since then, the technology is much cheaper now.

As I said costs to make something like this aren't expensive by any means now, hence why we're getting to a stage where it can come out and be released wth the intention to create a big install base.

I accounted for all parts that would go into making Morpheus, it's not that complicated really, not when you look into the hardware that goes into making the thing work, it doesn't even need some expensive battery, because it's connected through a power coard, maybe the retail unit would have a battery.

I stand by what I said, $99 is probably the break even price of the hardware, costs of boxing and shipping maybe add $10 to that figure, $129 would be a profit, $19 of profit is far from suicidal, actually it's probably just right and most people that are interested in Morpheus would happily pay that, they could probably get a bundle deal with 2 games for $199 and Sony will be happy with selling a couple of million units on launch day and 10% of the PS4's install base buying it over the life of the console.

 

Your kinect example is irrelevent to this argument, we're talking about a plastic headset, with foam, an OLED panel, sensors and some LED lights, $100 is probably even profitable for this kind of tech, kinect costing way more than production to buy is Microsoft's business decision, it has absolutely nothing to do with how Sony works.

 

The cheaper Morpheus is the more people will buy it and they will buy a boat load of games for it too.

Interesting, I hope you're right. I'll buy two for that price :)
It could really be a game changer at $129.

As for hololens, I guess MS might make the same choice as with Kinect. It seems more suited for work/research related applications like Kinect.