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Forums - Sales - Sony made a choice: market share > profit

Sony treats their hardcore fans well. They understand how important it is for a fan that the brand is popular and aims to dominate the market.

Marketshare first, profit is secondary in my opinion.

I wish MS would do this too to win the console war. :/



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Seems like it, and I can understand why the shareholders would be unhappy, but as a gamer, this is awesome. It makes for greater competition after all.



For the past few years, people keep forgetting two things when discussing SCE's profits:

1- They have 5,000 employees. You need very profitable systems to pay all those salaries even if the hardware/software itself is making a profit.
2- The PS2 and PSP are declining, and the PS3 improvements aren't getting them anywhere near the market share they had back in their profitable times.

When you think about those two things it makes perfect sense that they aren't able to make a profit.

 



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psrock said:
Really?

How about they are finally making money on the PS3 and can actually afford to cut prices. They have reduced the cost of making the PS3 and are starting to actually sell software.

For those who thought Sony was going to watch MS walk over them later this year, think again.


I'd love for you to go convince Sony shareholders how since the PS3 is finally profitting, they can "afford" to cut prices.

And what does that have to do with them not choosing marketshare over profit anyway? Pricecutting when you've just starting making money is a grab for marketshare, no matter how much you sugarcoat it.



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Sony can't borrow against potential profits for this entire generation. Can they?

The software turnaround has been amazing but they did have some very big IPs release their first HD games this year. More importantly the new slim owners are pushing sales of older titles like LBP, UC 1 & 2 etc. as they build their libraries. GOW3 and FF13 sales are a small percentage of 1.8m sw/wk.

Sacrificing their first console profits and more with another cut seems singleminded to the point of insanity to me. At some point Sony need to make some money. Bundling some quality sw would boost sw nos and make the PS3 even more attractive to devs. It would move less hw but leave their bottom line in the black for a change. Interesting times.



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themanwithnoname said:
psrock said:
Really?

How about they are finally making money on the PS3 and can actually afford to cut prices. They have reduced the cost of making the PS3 and are starting to actually sell software.

For those who thought Sony was going to watch MS walk over them later this year, think again.


I'd love for you to go convince Sony shareholders how since the PS3 is finally profitting, they can "afford" to cut prices.

And what does that have to do with them not choosing marketshare over profit anyway? Pricecutting when you've just starting making money is a grab for marketshare, no matter how much you sugarcoat it.

Sony have been convincing them for years, they even cut prices when they were really bleeding, when people were expecting them to fold.



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11/20/09 04:25 makingmusic476 Warning Other (Your avatar is borderline NSFW. Please keep it for as long as possible.)

Yes, that's what I believe too. They had to do it, though.

PS brand was going to die without the $300 price cut since the start. They had to make all kinds of sacrifices to keep it alive and desired.



I think it is probably true and I am a bit suprised they had that as an option with the financial uncertaintly around the business. This is the main reason why I was a bit suprised by the size of the price reduction when the slim was launched.

I am not sure it is the whole picture though. I think the slim gave them a chance at trying to do both with varying degrees of success.



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Does anyone have the chart how much money every one of the three made for the past years?



Imagine not having GamePass on your console...

One of the reason for the slump in sales in america this quarter is the lack of consoles in preparation for the newer cheaper SKU's, but the huge price tag also didnt help.



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