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Forums - Gaming Discussion - is 360 price cut even relevant?

Flackattack51694 on 07 February 2010

360 needs a price drop to hold second place for sure ps3 is coming up faster than you think i dont really think arc or natal are gonna be big changers its all about the games and price. but from what ive heard and seen so far looking like another year for ps3 unless microsoft has got some killer games at e3.



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jarrod on 07 February 2010
theprof00 said:
jarrod said:
theprof00 said:
jarrod said:
ramses01 said:
Attoyou said:

 

NEW Report Says They are Only losing $18, Google it if you have not already seen it , They are getting the price of the ps3 down Every month ,  THEY CAN And if They WANT Will Cut the Price , We will have to wait and see .


Even if the $18 is correct, that doesn't mean they are losing $18 per console.  It means that material cost of the console is $18 higher the MSRP. Sony's loss is much greater than that as each consoles also has retailer margin, shipping, and FTE costs associated with it.  Using your $18 as the base.  Then Sony is probably losing 18 + 15-30 for retailer margin + 3-5 for shipping + FTE costs (maybe $5-10) 

$18 per console would only be correct if the $349 SKU didn't exist.  That's PlayStation University's fuzzy math at work, the original source says "six cents loss on the dollar for hardware".

actually the quote is

“Sony loses about six cents for every dollar of PlayStation 3 hardware sales.”

I only brought this up because it has a very different nuance from what yours says. People who are saying that the number doesn't include shipping and such could be right or could be wrong. But it's obvious from the quote that those people do not have factual support for their statements. The fuzzy math could be from an average of both SKU sales, on average. But if that is true, then it is likely that the number DOES actually include shipping and other costs. Why skew facts in order to reach another skew? It makes much more sense to find the best fact and spin the reasoning as to why we should use that number.

If the fuzzy math does not exist, I still think their number includes shipping and such because of the quote presented above. It says "for every dollar of ps3 hardware sales", not "for every dollar of ps3 hardware". The original quote is actually quite direct and simplistic. For this reason, I think that the fuzzy math does exist, and includes all extra costs, meaning, 18$ per 299$ and 21$ per 349$ console. This is recouperable with 2 software sales or 1 game + 1 controller. 

I think you misunderstood, the "fuzzy math" is in actually claiming a "$18 loss per unit", which is exactly what PlayStation University did (and the Wallstreet Journal didn't do).  A six cent loss per dollar doesn't mean you can just apply that point blank per pricepoint, it means that's what the overall loss works out to. In terms of assembly/production cost, the 120GB and 250GB cost about the same, the only difference is in HDD capacity (which would be a minor cost difference).  What's likely happening then is a greater loss at the $299 pricepoint and possibly a small profit at the $349, but until we have a ratio for distribtuon of 120GB/250GB (say 60/40), we can't figure out what the exact loss per unit is.

lol, thats what I said. From an average of both SKU.

It's an aggregate, but there's MANY SKUs in MANY markets.  The $299 120GB in the US is the absolute lowest pricepoint worldwide, it's going to be taking the absolute largest loss worldwide, and other SKUs may actually be profitable even... as such you can't just apply the "six cents per dollar" loss to $299 and claim an $18 loss, that's fundamentally incorrect.  We can't determine the loss on a particular SKU until we have exact counts of SKUs, hence the "fuzzy math" on PlayStation University's part.



DarkisWR on 08 February 2010
dahuman said:
DarkisWR said:
dahuman said:
DarkisWR said:
dahuman said:
uh.... 2 things, America likes the 360, pewpewpew, and that a lot of people will buy at least 1-2 more 360s in their 360 owner time because of you know what. I personally would love to know how many total amount of 360 still works out of all that has sold personally, they also rip people off with xbox live, so they make money from that each month, I don't know why people defend live like it's their life blood, it really is no different than PSN besides cross game voice chat at this point in time, which is moot to me since I got skype on my iphone or computer for that.

You do realize that Sony is setting up a sub service aswell.

 

If you can't figure out the differnce atm between Live and PSN then...stay ignorant.

ignorant people are the ones that are only capable of looking at the surface and not the core, therefore blinded by value and standards set by other people.

 

*sigh*

 

Go get live and then go get psn*like I have* and compare it...and then factor in what is coming with sony's paid sub set up.

All current features will still be free on PSN, I've used XBL before, it's nothing special at all especially considering that I'm mainly a PC gamer. I don't use netflix, and I sure as hell don't use last.fm when I can have shoutcast at any time on my computer or on my iphone dock. Why do you pay for XBL if not for playing video games online? can't be for general use since the thing doesn't even have a web browser right? it doesn't even cost anything to get access to netflix on the PC, the PS3 or soon the Nintendo Wii, you just pay the monthly netflix fee, how the fuck do you justify paying for ads and services that cost nothing on other platforms? the experience? mii rip off? 5 dollar light sabers? windows media center layout that's worked like garbage since day 1? microsoft points bull shit on the market place? sounds like crack coaine to me.

Geez...I'd hate to lable you a fan boy but if the shoe fits....

 

I don't feel like arguing with ya....oh almost forgot...you WILL be one of the 1st ones paying for sonys new sub service.



Cypher1980 on 08 February 2010

Given the fact last gen sold about 200 million consoles and this gen nearly 140 million consoles have been sold....

I think unless PS3 can somehow totally derail the Wii then it will run out of road long before the 360 is caught.

Together the consoles are selling 3 million a month. At that rate, market saturation is just 20 months away.



dahuman on 09 February 2010
DarkisWR said:
dahuman said:
DarkisWR said:
dahuman said:
DarkisWR said:
dahuman said:
uh.... 2 things, America likes the 360, pewpewpew, and that a lot of people will buy at least 1-2 more 360s in their 360 owner time because of you know what. I personally would love to know how many total amount of 360 still works out of all that has sold personally, they also rip people off with xbox live, so they make money from that each month, I don't know why people defend live like it's their life blood, it really is no different than PSN besides cross game voice chat at this point in time, which is moot to me since I got skype on my iphone or computer for that.

You do realize that Sony is setting up a sub service aswell.

 

If you can't figure out the differnce atm between Live and PSN then...stay ignorant.

ignorant people are the ones that are only capable of looking at the surface and not the core, therefore blinded by value and standards set by other people.

 

*sigh*

 

Go get live and then go get psn*like I have* and compare it...and then factor in what is coming with sony's paid sub set up.

All current features will still be free on PSN, I've used XBL before, it's nothing special at all especially considering that I'm mainly a PC gamer. I don't use netflix, and I sure as hell don't use last.fm when I can have shoutcast at any time on my computer or on my iphone dock. Why do you pay for XBL if not for playing video games online? can't be for general use since the thing doesn't even have a web browser right? it doesn't even cost anything to get access to netflix on the PC, the PS3 or soon the Nintendo Wii, you just pay the monthly netflix fee, how the fuck do you justify paying for ads and services that cost nothing on other platforms? the experience? mii rip off? 5 dollar light sabers? windows media center layout that's worked like garbage since day 1? microsoft points bull shit on the market place? sounds like crack coaine to me.

Geez...I'd hate to lable you a fan boy but if the shoe fits....

 

I don't feel like arguing with ya....oh almost forgot...you WILL be one of the 1st ones paying for sonys new sub service.

No I will not, I stopped paying for XBL because it didn't justify, and if PSN charges to play online, then I won't play online with that either, I will always have my PC ready. Can't be a fanboy if I'm not saying I support one platform more than the other, I like everything just fine, I just don't like the idea behind XBL in general, which has nothing to do with the 360 hardware or the great games on it. All it takes is a little logic to figure that out.