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Forums - Sales Discussion - Hypothetical: What if the PS3 was $150 right now

Siko1989 on 05 February 2010
Kasz216 said:
TWRoO said:
jarrod said:
EncodedNybble said:
jarrod said:
Inversely... what if Wii was $99 right now?

Actually, I sort of suspect a $99 Wii would still probably be profitable for Nintendo. lol.

Not so... I can't be bothered to explain but using Nintendo's financial statements they are probably making somewhere between $20-50 on average (using FY 2009 and previous.... perhaps exchange rates have helped or hindered them in the last 9 months to change that)

However what Grimes said will be true.... after all if Sony would lose about $200 per unit with a $150 PS3, well for the Wii to lose that amount it would have to be free

I'd totally get 3 backup wiis for free.

 

Or maybe like 40... and build a wii castle for my cat... that'd rule.  Don't know what i'd do with all those extra cords though.

haha the funniest comment i ever seen in a while




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TWRoO on 05 February 2010
Netyaroze said:

Hmm maybe Sony could give the PS3 for free to everyone if you sign a contract that you will buy every month a game directly from Sony. For 3 years. Sony would sell 36 games per every free console and they would earn all back because retailer would be eliminated. Plus the royalties lets say 20 Dollar/Euro profit per game. If its a Sony title ofcourse a lot more.

20*36= 720-330 would be a nice profit it would be good for Sony and good for the hardcore player.


They could offer the games at the same prices they are sold at amazon. I would sign such a contract. Are there companies in the US which do that, it would be even cheaper for them because they are just paying the retail price.


An interesting concept. Although it would be something to be implemented at the launch of a console rather than mid-life, and at launch it was suspected the PS3 cost over $800 to produce.



NJ5 on 05 February 2010

Cats and dogs living together. Raining hammers. A giant black hole engulfing the solar system.



My Mario Kart Wii friend code: 2707-1866-0957

jarrod on 05 February 2010
TWRoO said:
jarrod said:
TWRoO said:
jarrod said:
EncodedNybble said:
jarrod said:
Inversely... what if Wii was $99 right now?

Actually, I sort of suspect a $99 Wii would still probably be profitable for Nintendo. lol.

Not so... I can't be bothered to explain but using Nintendo's financial statements they are probably making somewhere between $20-50 on average (using FY 2009 and previous.... perhaps exchange rates have helped or hindered them in the last 9 months to change that)

However what Grimes said will be true.... after all if Sony would lose about $200 per unit with a $150 PS3, well for the Wii to lose that amount it would have to be free

Man, if that's the case then they really, really need to get their engineers on some cost cutting revisions asap.  If they could get the GameCube down to profitability at $99 in 2003, then there's really no excuse for only making $20-50 on a $199 Wii in 2009.  Talk about money left on the table.

Well like I say, exchange rates can change this, and one of the main things for that seemingly low profitability is the poor rates.

And we have no idea whether the GC was profitable then.... only that Nintendo as a whole was profiting (they had GC games, and the GBA business as well as GC hardware)

No, Nintendo reps said they were actually profiting on hardware after a short period @ $99, and even when they took a slight loss on hardware initially, the sale of one game covered it.  The price drop correlated with several internal revisions, including dropping digital audio and the 2nd expansion bay/port for cost cutting.



jarrod on 05 February 2010
Netyaroze said:

Hmm maybe Sony could give the PS3 for free to everyone if you sign a contract that you will buy every month a game directly from Sony. For 3 years. Sony would sell 36 games per every free console and they would earn all back because retailer would be eliminated. Plus the royalties lets say 20 Dollar/Euro profit per game. If its a Sony title ofcourse a lot more.

20*36= 720-330 would be a nice profit it would be good for Sony and good for the hardcore player.


They could offer the games at the same prices they are sold at amazon. I would sign such a contract. Are there companies in the US which do that, it would be even cheaper for them because they are just paying the retail price.

I remember Sega had a scheme to give away Dreamcasts free with annual Seganet subscriptions or something.  I don't know if they ever actually implemented it, but it's an interesting concept.



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Solid_Snake4RD on 05 February 2010
Kage848 said:
CommonMan said:
I believe Kevin Butler said it best "Price check in aisle BOOM!"

360 would be out of business (if were talking holding it's price steady, which would be suicide) and the PS3 and Wii would be neck and neck.

Lol. I think Sony sould be out of business...=0)

sony won't be out of business.earlier they were selling for a far greater loss and they didn't go out of businees.even though more systems will be sold and more losses will occur but sony can handle that and think about how high would the software sales would be



Solid_Snake4RD on 05 February 2010
Grimes said:
CommonMan said:
I believe Kevin Butler said it best "Price check in aisle BOOM!"

360 would be out of business (if were talking holding it's price steady, which would be suicide) and the PS3 and Wii would be neck and neck.

Sombody would be out of business, I'm not so sure it would be MS or Nintendo.

sony won't be out of business.earlier they were selling for a far greater loss and they didn't go out of businees.even though more systems will be sold and more losses will occur but sony can handle that and think about how high would the software sales would be



Solid_Snake4RD on 05 February 2010
Grimes said:
If business were as easy as dropping prices, we would all be Bill Gates.

bill gates?

 

he doesn't know anything about business,atleast not as much as other BIG WIGS that have an MBA and a degree in finance and management.



Raze on 05 February 2010

I love hypothetical questions. What if humanity was forced into slavery by two races - a race of giant lizard people, and a race of giant wolf people. Which would you prefer to be used by for "pleasure" purposes?



The Carnival of Shadows - Folk Punk from Asbury Park, New Jersey

http://www.thecarnivalofshadows.com 


V-r0cK on 05 February 2010

....then i'd be getting myself another PS3 of course =)