Playstation Classic Announced, releasing in December 3rd with 20 games pre-loaded and cost $99

[RenCutypoison]

Hiku said:

KLXVER said:

My point was that the PS3 was expensive because it was expensive to make. Not because of Sonys research and marketing.

Let me chime into your discussion here.

Forget 'expensive' or 'cheap'.
Everything Sony invests to get a product into the hands of consumers needs to be recuperated somehow. And then some, so that they make a profit.
That does include research and development, manufacturing, shipping, packaging, marketing, logistics, etc.

For standard consoles, the situation is a bit different in that they don't need to make all of it back on the initial console sale, because they can do it with software sales over time.
But for a product like this, that's not the case. There will only ever be one single transaction for this product. So the revenue of this product needs to cover everything and anything that they normally could have made back with additional software sales, subscriptions, etc.
On top of that there's the licensing fee for the 20 games, excluding the I.P.'s they own.

I don't know why it got this exact price tag. But selling it for, or around, the manufacturing cost of the system would surely lose them a lot of money.

Thank you for clearing that up, I couldn't find the right words.