PS4 Won October NPD (PS4 > NS > XBO)

[DonFerrari]

drkohler said:

DonFerrari said:

I think 18M is very safe, with strech to 20M and 19M being the most probable (which is still 3M higher than their projection). I wouldn't doubt they out ship Switch or at least have a technical tie for the fiscal year (and that is considering Sony is like 2 or 3M ahead so far in the year, but I expect Switch to sell more on holidays).

Yep, they are probably at a point in their curve that additional production would cost more instead of less, and at current production they can sell almost all without pricecut so no need for it.

We are in a time when the factories are "sold out" in China, it's XMas production crunch and there are no free supply lines available, anywhere, any factory. Even if they wanted, Sony could not magically produce more PS4s than they have ordered. In such a hypothetical scenario (throwing out other customers for production of additional PS4s instead), the manufacturing price would probably skyrocket to $400. That's just the ugly side of mass manufacturing.

At $199, the PS4 induces a loss in the books. Like last year, Sony will simply set a maximum amount of money they want to lose on hardware which limits the number of $199 PS4s available. (Needless to say, currently the plain PS4s sell for $329-$349 here in town so it seems NA gets preferrential treatment although NA isn't really the prime market for Sony). As Sony increased the forecast, but they will produce the additional 0.5M units after the XMas rush, towards the end of this fj. Maybe with flying in units straight from the factories, they can avoid empty shelves after XMas...

Yes, Sony would need to have negotiated additional capacity 3-6 months before Xmas if they wanted more made, but even so I believe that it would probably cost them more than what they currently have, plus they cutting price to move this surplus will reduce profit and it may not pay-off on the extra SW.