rocketpig said:
Kyros said:
A $100 price cut in 2008 would seriously harm any chance of the console ever turning a profit.
I think this sentence is a pretty strong and unsubstantiated statement. 100$ may seem like a lot of money but every additional console sold means more games, more accessories etc. sold. Most people buy at least a second controller, a couple of games ( 9 for the PS2 I think), perhaps a Playstation Eye, some online games, a few BluRay discs etc. pp.
So the question is: Whats bigger: The number of PS3s they sell times 100$ or the longterm profit of the additionally sold PS3s.
In the end it doesn't matter when the 360 drops the price they have to follow. At the moment they sell quite healthily but they cannot afford to fall back.
I still remember a similar discussion I had with someone 2007. He said Sony would never drop the price before christmas but would wait till April 2008. They couldn't afford it, nobody would drop a price for christmas etc. pp. Two months later the 40Gb was shown for 400$. Besides producing computers gets LOTs cheaper in two years.
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It would harm their chance of ever turning a profit on the console. Sony can't afford to go 2 1/2 fiscal years with huge losses and expect the console to make all that back in the last 3 1/2 years. MS has taken that strategy with their consoles and there's only a hope that the 360 will come out profit neutral when all is said and done. That's a shitty business strategy and Sony knows it. Sure, they'll sell more games, accessories, etc. but $100 is a lot of games when you're only pulling in ~$10 per third party game. |
I agree with you that there won't be a price drop, but MS isn't losing any money at all their making the most in software sales(highest attach rate) XBL and the fact that the 360 manufacturing costs went down. There was actually a recent news story on how the 360 is making them a bundle, so Sony isn't following MS 360 plan because the 360 is making a fortune. I would say that Sony is more along the lines following the Xbox 1 plans. MS couldn't afford a price drop, but they still did it because of Sony.
