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Intrinsic said:
DonFerrari said:

Well if the cut makes the total profit lower there is no point in doing it.

That depends.

I firmly believe the PS4 cost sony around $200 to make right now. +/- $30. 

If they lave the price at $299 sales will be sinificantly lower next year than it was this year. That seems ok if they can still sell like 14M consles at around $299 but at some point that starts becoming counterproductive. At some point the $60 or so that they make on the hardware frm the reduced number of consoles sold each month isnt worth it when You can sell at a lower price, selling more consoles and more software to the new buyers. 

It is a complicated calculation even more when at the end of a gen there is less SW expected to be sold and the PS+ plan signature.

But the point was on PS3, the moment it was really going downwards was a point of hard justification for pricecut (PS+ wasn't needed at the time) and because of the cell the cost reduction was also hard to do.

On PS4 it may be easier to go 199 or even 99, they deciding on that will depend on the aditional PS+ subs and games sold covering the gap.



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."