FATALITY said:
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we will talk again after november and december npd
one month xb1 will be ahead of ps4
one month xb1 will be close to ps4
FATALITY said:
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we will talk again after november and december npd
one month xb1 will be ahead of ps4
one month xb1 will be close to ps4
deskpro2k3 said:
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Yeah, volume vs profit margin is a tricky beast. But if you have postive consumer perception and you are profiting off every unit sold cutting the price by a modest amount should always end up improving net profit. But only if the price cut isn't wiping out to much of your margin. If Sony is clearing $20 per PS4 sold then a measly $10 price cut requires them to sell double the number of consoles to make the same profits, but a $10 cut won't achieve that level of increase in hardware and and any increase they do get won't also compensate with a substantial increase in software. If they clear $50 per console then a $25 cut demands the same increase, but won't have that effect, though it would significantly improves software sales, albeit probably still not enough to maintaqin current profits. To actually be able to have a meaningful effect on sales but no loss in profits pretty much requires Sony to be profiting $100 per console so that they can afford to drop the price by about $25 and get a 20% or so lift in hardware sales and enough of a lift in software sales to hold profits. But I seriously doubt Sony is profiting $100 per PS4 this soon after launch.
Therefore, I think if Sony cuts the price by any amount that is meaningful to the consumer they will be sacrificing short term profits. Which may still be a justifiable move, but I think with Sony's already projected huge loss for the FY (albeit not an actual cashflow loss) selling a drop in PS4 profits to the board and major shareholders would be difficult.
Sony could be legitimately accused of being stupid if they make pricing decisions based on how they are competing with Xb one in the USA and UK. The USA in particular is a low margin market already (being the cheapest place in the world, I believe, to buy a PS4 or a Xb one) and it really doesn't matter if PS4 only beats Xb one by a little bit there or even if Xb one wins by a little bit, especially if it's only holiday 2014 and not LTD. Similarly with the UK, PS4 is doing plenty good in that market. And as for the rest of the world Xb one is as much of a threat to PS4 as Wii U. PS4 is in a position where Sony can make pricing decisions according to its own timetable and they can ignore all rational pricing moves by MS qnd Nintendo. If MS gets irrational and drops to $299 this year, Sony might need to think about a response. But I don't see MS doing that. Black friday Xb one $349 with $50 gift card I can see happening. But I can see PS4 $399 with $50 gift card happening on BF too, meaning the $50 gap is maintained.
“The fundamental cause of the trouble is that in the modern world the stupid are cocksure while the intelligent are full of doubt.” - Bertrand Russell
"When the power of love overcomes the love of power, the world will know peace."
Jimi Hendrix
kowenicki said:
So far in the holiday period from 1st November 4.36m:3.60m, which I believe is 1.2:1 (or thereabouts). Toastboy right again.
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Sadly he isn't here to celebrate.