usa: "PS4 has already sold more units this week > the last several months combined"

[DonFerrari]

colafitte said:

One has to wonder how much profit do Sony really get with PS4 at 200$ instead of the usual price...

Oversimplifying things to prove a point....If a PS4 costs, as an example, 190$ to produce, distribute and market it, that will give you 10$ profit per unit at 200$ instead of 110$ profit per unit if you sell it at 300$. You need to sell waaaaay more units at 200$ to reach the same profits than if you sold the console at 300$. In my opinion, those bundles at 200$ are more a marketing tactic than anything else and that's why the stock is always so small. And this is without counting the games you're putting in the bundle for free.

I know is a cheap and a innacurate example of how things really work but it's the easiest way to explain my point, and why Sony is not going to drop the price for PS4 if they still keep a comfortable pace of sales at 300$. Sony learned a lesson with PS2 and PS3 back in the day:

Profits > Sales.

they receive about 20USD per game sold and each console will make at least lets say 10 games sold on average that is 200USD.

They receive 60USD per year and 40% attach ratio for a 5 year period = 60*0,4*5 = 120USD.

So each PS4 sold gets then additional 320USD. Even if they forfeit 110USD with the promotion they would still make additional 220USD.

The question is how much sales would change with this cut.

Let's say they can sell 1M at 300USD and 1.5M at 200USD.

So it's 1M * 430 vs 1.5M*320, which means 430M vs 480M (or additional 50M revenue). So yes they would need much more sales to justify the cut.