bumidan on 10 July 2008
| Plaupius said: Only a couple of comments: 1) I believe the PS2 hardware drop could be significantly more than 15%, the current levels are more like 30% less than a year ago. 2) If the PS3 numbers increase a lot, the net loss per unit will come down as well since the fixed costs will be divided between more units. So, if Sony shipped for instance 13 million PS3 instead of the projected 10 million, the net loss won't increase 30%. Those are the two things off the top of my head. I believe it is safe to assume that the PS3 "price reductions" are effective, it is already clearly past the launch period so Sony won't spend as much on marketing and probably there are not as much R&D costs to amortize. |
1. Reasonable assumption.
2. Yes, which is why my loss per console for the PS3 was much less.
If you have another set of assumptions, let me know. Just follow how I did my analysis. I can even run them for you in my handy dandy spreadsheet and show you how your numbers turn out.
Geeky, eh? haha.
That's what a finance education and video game playing does to you.
