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Alby_da_Wolf said:

I remember even before (but maybe I mix-up USA, EU or WW), but that was in USA, while in the EU the 299€ PS3 broke even several months before and WW, obviously, somewhere in between, but overall, WW, it broke even around March 2010, so dropping price in Autumn 2011 would be at least 18 months after it broke even WW at $299/299€, dropping to $199 (and 199€ in EU) could make PS3 sell at a slight loss in USA, but break even or make a small profit in EU and profit where it's even more overpriced than in EU, compared to USA. The margin is there, but the decision will be taken considering a lot of other factors, that will be combined and weighted to decide whether the benefit compared to just dropping to $249 could be worth the lower profit margin until in the best case PS3 should have dropped to $199 anyway. Currently Sony looks like it prefers, after the huge initial losses, good profits and more than decent sales to stellar sales and low profit, so, unless their plans are less linear and obvious for the future, this year a drop to $249 looks more likely to me too, but the one to $199 is not to be ruled out, it wouldn't be a bloodbath by any means. BTW, when PS4 launches, PS3 should be dropped to $150 or less, so when PS4 launches plays a role too, price drops too close to each other should be avoided, if possible (this applies to XB360 too depending on XB720 launch date, while Wii is just one drop away from Wii max reasonable price when Wii2 lauches, so it should be fine whatever Ninty chooses, despite having very little room for price drops and strict timing to observe if it wants to launch Wii2 later than Autumn 2012, Ninty has no problems to make Wii reach the right price without hurrying drops up, instead it must be very accurate choosing when to drop if it wants to extend Wii's life as main console as far as possible).

I didn't know that the PS3 was profiting more in Europe early on, but anyway, your main conclusion is more or less the same as mine. They could probably almost break even with it, but it's highly unlikely that they'll try $199 so early.

Other than that, you just did some random analysis, :P, but thanks, I guess. Always nice to be enlightened.



 

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mantlepiecek said:
CGI-Quality said:
Michael-5 said:
CGI-Quality said:
Michael-5 said:

 The only difference between DVD and blu-ray is a different type of light reading the disk (a blue beam instead of red).

The talk of difference between the PS3 and 360 is up for debate (though each has striking advantages), but the difference between DVD & Blu-ray is substantial. Disc space for starters.

You know how Blu-Ray has more disk space? Blu-Ray systems read the data 5 times faster, so you can fit 5x as much data into the same space on a DVD. The disk is nearly the same with all optic properites. You know it's just a peice of glass bounded with plastic right?

If you somehow think the difference between Blu-ray and DVD is small, you would have it wrong. The differences go beyond the material they are used with. Just listen to any dev, the differences aren't small.

I could care less about the differences, one advantage blu-ray has over DVD is the scratch-free surface which I really care about.

^^^^ this. i love this. i drop my disk and move my ps3 all the time while the disk is in, and its always fine.

when gamestop 1st launched their game protection plan that for an extra fee, they would ensure your game in case it got scratched, i laughed in his face. i was like, silly clerk, i have a ps3.



Chaps, does it really matter if system X sells a few thousand more units than system Y? This point may have very well been raised before, however I was once a rabid Sony fanboy, I would passionately defend the PS3 against everyone. And then I grew up and realised that it really does not matter how many units the PS3 sells each week. Just the enjoy your games!



SlaughterTheISA said:

Chaps, does it really matter if system X sells a few thousand more units than system Y? This point may have very well been raised before, however I was once a rabid Sony fanboy, I would passionately defend the PS3 against everyone. And then I grew up and realised that it really does not matter how many units the PS3 sells each week. Just the enjoy your games!

But I have to defend the PS3.  How can I enjoy playing my games when the PS3 has no games? 



Immortal said:
Alby_da_Wolf said:

I remember even before (but maybe I mix-up USA, EU or WW), but that was in USA, while in the EU the 299€ PS3 broke even several months before and WW, obviously, somewhere in between, but overall, WW, it broke even around March 2010, so dropping price in Autumn 2011 would be at least 18 months after it broke even WW at $299/299€, dropping to $199 (and 199€ in EU) could make PS3 sell at a slight loss in USA, but break even or make a small profit in EU and profit where it's even more overpriced than in EU, compared to USA. The margin is there, but the decision will be taken considering a lot of other factors, that will be combined and weighted to decide whether the benefit compared to just dropping to $249 could be worth the lower profit margin until in the best case PS3 should have dropped to $199 anyway. Currently Sony looks like it prefers, after the huge initial losses, good profits and more than decent sales to stellar sales and low profit, so, unless their plans are less linear and obvious for the future, this year a drop to $249 looks more likely to me too, but the one to $199 is not to be ruled out, it wouldn't be a bloodbath by any means. BTW, when PS4 launches, PS3 should be dropped to $150 or less, so when PS4 launches plays a role too, price drops too close to each other should be avoided, if possible (this applies to XB360 too depending on XB720 launch date, while Wii is just one drop away from Wii max reasonable price when Wii2 lauches, so it should be fine whatever Ninty chooses, despite having very little room for price drops and strict timing to observe if it wants to launch Wii2 later than Autumn 2012, Ninty has no problems to make Wii reach the right price without hurrying drops up, instead it must be very accurate choosing when to drop if it wants to extend Wii's life as main console as far as possible).

I didn't know that the PS3 was profiting more in Europe early on, but anyway, your main conclusion is more or less the same as mine. They could probably almost break even with it, but it's highly unlikely that they'll try $199 so early.

Other than that, you just did some random analysis, :P, but thanks, I guess. Always nice to be enlightened.

This comes from exchange rate and taxes: 299€ EU price is VAT included, but VAT rarely exceeds 20%, while the €/$ rate has always been greater than 1.2 since PS3 launched, and most often greater than 1.4, so the margin in EU was higher (or the losses lower) than pricing it $299 excluding sales tax in USA. Outside of EU, Japan and USA, price often skyrocketed, giving an even higher profit margin, although on far smaller sales volumes. Anyway, being EU the main market for PS3, strong Euro helped it a lot to reach profitability earlier here and, after a while, but still before than in USA, WW.

About the random analysis, yes, it's mainly "what I find reasonable if a given condition is satisfied and when", except the estimate about being able to do a substantial drop 18 or more months after breaking even, based on Moore's law and the usual components price reduction rate.



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Script 1: Too bad for Wii...

Script 2: Wii is falling!

 

OT: Good sales for Wii. Waiting for GDC or E3 to see what kind of games will Nintendo announce.



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LivingMetal said:


So you can stop judging me right now.  Take you own advice.  And about being personal.  Stop calling me out, and I won't be responding to you.  You're not going to bait me to get that kiss from me.  It's not going to happen, ever.  I'm not even going to hold your hand.  It wasn't meant to be.  Please, find someone else.


Wow someone has a case of self grandeur.

This is why I want a block button on this site... does it exist. The amount of crap that gets sprayed on this site sometimes...



 

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osamanobama said:

^^^^ this. i love this. i drop my disk and move my ps3 all the time while the disk is in, and its always fine.

when gamestop 1st launched their game protection plan that for an extra fee, the would ensure your game in case it scratched, i laughed in his face. i was like, silly clerk, i have a ps3.


LOL!!! THIS!!



AussieGecko said:
LivingMetal said:


So you can stop judging me right now.  Take you own advice.  And about being personal.  Stop calling me out, and I won't be responding to you.  You're not going to bait me to get that kiss from me.  It's not going to happen, ever.  I'm not even going to hold your hand.  It wasn't meant to be.  Please, find someone else.


Wow someone has a case of self grandeur.

This is why I want a block button on this site... does it exist. The amount of crap that gets sprayed on this site sometimes...


So you need a block button to prevent yourself from responding to me?  Please resist the urge from responding to this response.  You can to it.  Even though we weren't made for each other, I have enough faith in you that you can do it.  Stay tough, stay strong.  Don't do it, don't do it, don't do it...



chapset said:

xbox 360 50k above wii in NA, wow kinect is really doing wonders, or maybe a bit overtrack


your math is a bit off, 38K, not 50k. But hey what's a 23% difference? It seems to work for meteorologists in their margin of error ;)



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