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JRPGfan said:
Keiji said:

Then they should do more PS4.

It depends on when they can get parts at the right prices..... sony might be waiting for options to present themselves (ei. so they maximise their profits).
Theres a downside to this ofcourse, if you dont predict sales expectations right, you run into shortages (which can then be costly to correct).

Sony/MS/Nintendo probably buy in bulk quantities whenever prices of units are at low points.
If someone else is currently buying parts ect or the prices arnt right they might just wait..... until their forced to buy
(and then they ll do it in small amounts, until prices allow them to buy large quanities again).

Stuff like that can lead to shortages, or to limiting choices, so they ei. dont do a price cut and just sell massive amounts.

Sony buys on long-term contracts with expected quantities that will either have fines, credits or extra pays depending on the changes they do on immediate purchase. But perhaps at current technology and efficiency their best cost on HW is around 1.5M produced a month and they only go above it (costing more on production) when they think the extra sales will bring much more revenue on SW in a way that they make more total profit.

This time it may not have be enough to justify doing price cuts to increase demand and at the same time occur more cost to increase supply because SW wouldn't pick up the slack.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."