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Forums - Sales - 3DS huge price cut... what does this mean for PSVIta?

 

Handhelds next gen performance.

Both "doomed"... 43 11.78%
 
3DS will still falter and... 69 18.90%
 
3DS will explode now and ... 116 31.78%
 
3DS will explode now and ... 43 11.78%
 
see results. 94 25.75%
 
Total:365
o_O.Q on 28 July 2011
HappySqurriel said:
I don't know what is going to happen ... For the past several weeks I have been wondering how the eroding value of the American dollar (in comparison to the Yen) was going to impact the strategies of Sony and Nintendo.

I assumed that the 3DS was priced at $250 because the American Dollar fell from being worth 120 yen in 2005 to 80 yen in 2011 which ‘should’ cause a 50% increase in the price of Japanese goods in America, and Nintendo wanted a buffer against further exchange rate changes. If Nintendo had maintained this price I was envisioning Sony using a combination of their strategy with the PSP and PS3 to have the PS Vita at a higher price at retail (to compensate for a poor exchange rate) while still being able to claim that the system was $250; effectively, Sony wouldn't (really) manufacture the $250 PS Vita, and the 3G PS Vita would be sold in a manditory bundle for $350.

With the 3DS being sold for $170 it seems unlikely that Sony could be effective with a bait-n-switch pricing strategy because buying a system with more features than you want with a game you don't want for almost $200 more than your competition hardly seems like much of a value.


For those who don't understand ...

If Sony decided they could sell the PS-Vita at $250/$300 with an acceptable loss under the assumption of an average dollar value of 80 yen over the first year and the dollar falls to be worth (on average) around 75 yen for the first year Sony will lose around $16/$20 more per system than they initially anticipated; and if the dollar devalued even further to be worth 70 yen on average Sony would lose around $35/$42 more per system.

This may not sound like a lot of money but when you also included lost revenue from exchange rate changes across their entire product line including system sales, software sales, accessory sales, and licensing fees the net effect on the companies financials (which are the basis for projecting the loss they could accept on the system) the company may be in a position where they can't tolerate the loss they anticipated while facing a larger loss than they calculated.

how does 250 - 170 = 200 ?

furthermore weren't you the same guy arguing that the wii u controller is going to be far less expensive than people have been expecting?



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Degausser on 28 July 2011
Hyruken said:
Personally i think this means Vita is in serious trouble in the UK. To the point where it might actually be dead on arrival.

For those that don't know Europe and more specific UK are having to pay £279.99 for the Vita. That is $455.

With the 3DS getting "a third off in Europe" would put it at around £120 or $196. Still more then what the US pay but a lot better then it's current £180 price. By the time Vita comes out here 3DS could be sold by some places for around £100.

Sony will have to justify why people from the UK would have to pay double what the 3DS cost to get a Vita. Especially when if you look at it you can get an xbox for £130 and a PS3 for £180. Meaning a Vita will cost almost as much as a 360 and PS3 COMBINED. Only around £100 less then buying an okish 3d tv. Almost double the price of an Ipod touch, around the same price as an iphone 3gs, almost the same price as a Samsung R730 laptop, only £20 less then a Samsung P1000 Galaxy Tab and so on and so on.

The point is there are a lot of products around that price range. A lot of portable devices that in some regards can do a lot more then what a Vita can.
The main reason to get a Vita is obviously the games. But other then Uncharted there is not much coming to it. Sure you can talk about games like LittleBigPlanet and Mod racers but nobody is going to put almost £300 on the counter so they can play those games. You might as'well just buy a PS3 and save yourself £100.

It is a lot of money and i think what has happened to the 3DS is what will happen to the Vita in UK.

I will pick up a DS when it hits the £99 point because at that point it will have a few decent games i.e mario land, Mario Kart, Kid Icarus and that new Resident Evil game. But i won't pick up a Vita until it is more in line with the US prices. It will cost $250 in US on release. In £ that would be £150. Meaning in US your getting it almost half price in comparison to everywhere else.

Setting the price so high in the UK could seriously damage it. People won't pay that here. They didn't pay £499 when the PS3 launched and it then got a huge price cut just a few months later. Since then it has always been 2nd to the 360. The same pattern could happen again but this time with the 3DS.

A £120 3ds will murder a £279 Vita in the UK.


 Those numbers are worrying... but thus far it's no different to the 3DS. For starters, the wifi-only Vita pricepoint is £229 (Why didnt you mention this?)... which coicidently, is the same price the 3DS announced (I use this term lightly.. .seeing as neither a 3DS or Vita UK pricepoints were ever announced) for in the UK (If you check my post history you can see me ranting about it). But the reality was, the 3DS didn't cost that much, why? It was simply the retailers upping the price at launch to get as much profit from pre-orders... within a few weeks the price came down to £180 and is now as low as £160 with a game, even without this official price cut, which should take it a bit lower still.

 European retail has always worked different to the USA - with another example of this trend being that my friends pre-order PS3 at launch was £600 (Sucks to be him). Within a week it was £425 on the same website, and a month some retailers had gone down to £350 - in Europe the retailers set the price and it nowadays leads to crazy pre-order prices as the simple fact is stupid people pay it. 

 The Vita won't stay at £229 for longer then a month and I fully expect I'll be buying mine 2 months after launch, bundled with a game or SD card for £170 maximum. 

(I'm going off UK prices and stuff, I'm fairly sure the situation is very similiar in Europe (Seeing as otherwise people would just import it lol) but yeah the very basis of your argument is flawed).

And to probably save myself a reply, I've attatched a link showing HMV as one of the retilaers who began 3DS preorders at £229:

http://www.t3.com/news/nintendo-3ds-uk-release-date-and-price-announced?=52615



Solid-Stark on 28 July 2011

3DS sales will definitely rise. Vita may have already lost this one as well. (Strictly due to price.)



e=mc^2

Gaming on: PS4 Pro, Switch, SNES Mini, Wii U, PC (i5-7400, GTX 1060)

SaviorX on 28 July 2011

Damn, Nintendo messed up BIG time. This does justify a more reasonable price for the eventual Wii-U though. $300 is a smart idea.

Since 2009 they have tumbled so damn hard lol I blame Miyamoto and Reggie.

Miyamoto for not creating anything substantially groundbreaking since (and probably cancelling the creative output of other Ninty employees) and Reggie for not making any effort to localize foreign titles for the Wii nor advertise.



Leatherhat on July 6th, 2012 3pm. Vita sales:"3 mil for COD 2 mil for AC. Maybe more. "  thehusbo on July 6th, 2012 5pm. Vita sales:"5 mil for COD 2.2 mil for AC."

d21lewis on 28 July 2011

I'm smarter than the heads of corporations that have existed since before I was born and I say both are doomed. If I were in charge of Nintendo/Sony, things would be awesome. Why I haven't applied myself and become a billionaire is beyond me.



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Mad55 on 28 July 2011

It means vita is in trouble but! i want those 20 download game! lol



superchunk on 28 July 2011

At this point it means nothing.

DS didn't destroy PSP due to its price alone. It destroyed the PSP due to software.

Look at DS' history, it sold about as good as 3DS is now until Nintendogs released followed by Brainage. Once those came out, it was full steam ahead.

3DS now has a far more mass market friendly price. It now needs to forgo the 10 year old ports and focus on compelling new games.



Hyruken on 28 July 2011
Degausser said:
Hyruken said:
Personally i think this means Vita is in serious trouble in the UK. To the point where it might actually be dead on arrival.

For those that don't know Europe and more specific UK are having to pay £279.99 for the Vita. That is $455.

With the 3DS getting "a third off in Europe" would put it at around £120 or $196. Still more then what the US pay but a lot better then it's current £180 price. By the time Vita comes out here 3DS could be sold by some places for around £100.

Sony will have to justify why people from the UK would have to pay double what the 3DS cost to get a Vita. Especially when if you look at it you can get an xbox for £130 and a PS3 for £180. Meaning a Vita will cost almost as much as a 360 and PS3 COMBINED. Only around £100 less then buying an okish 3d tv. Almost double the price of an Ipod touch, around the same price as an iphone 3gs, almost the same price as a Samsung R730 laptop, only £20 less then a Samsung P1000 Galaxy Tab and so on and so on.

The point is there are a lot of products around that price range. A lot of portable devices that in some regards can do a lot more then what a Vita can.
The main reason to get a Vita is obviously the games. But other then Uncharted there is not much coming to it. Sure you can talk about games like LittleBigPlanet and Mod racers but nobody is going to put almost £300 on the counter so they can play those games. You might as'well just buy a PS3 and save yourself £100.

It is a lot of money and i think what has happened to the 3DS is what will happen to the Vita in UK.

I will pick up a DS when it hits the £99 point because at that point it will have a few decent games i.e mario land, Mario Kart, Kid Icarus and that new Resident Evil game. But i won't pick up a Vita until it is more in line with the US prices. It will cost $250 in US on release. In £ that would be £150. Meaning in US your getting it almost half price in comparison to everywhere else.

Setting the price so high in the UK could seriously damage it. People won't pay that here. They didn't pay £499 when the PS3 launched and it then got a huge price cut just a few months later. Since then it has always been 2nd to the 360. The same pattern could happen again but this time with the 3DS.

A £120 3ds will murder a £279 Vita in the UK.


 Those numbers are worrying... but thus far it's no different to the 3DS. For starters, the wifi-only Vita pricepoint is £229 (Why didnt you mention this?)... which coicidently, is the same price the 3DS announced (I use this term lightly.. .seeing as neither a 3DS or Vita UK pricepoints were ever announced) for in the UK (If you check my post history you can see me ranting about it). But the reality was, the 3DS didn't cost that much, why? It was simply the retailers upping the price at launch to get as much profit from pre-orders... within a few weeks the price came down to £180 and is now as low as £160 with a game, even without this official price cut, which should take it a bit lower still.

 European retail has always worked different to the USA - with another example of this trend being that my friends pre-order PS3 at launch was £600 (Sucks to be him). Within a week it was £425 on the same website, and a month some retailers had gone down to £350 - in Europe the retailers set the price and it nowadays leads to crazy pre-order prices as the simple fact is stupid people pay it. 

 The Vita won't stay at £229 for longer then a month and I fully expect I'll be buying mine 2 months after launch, bundled with a game or SD card for £170 maximum. 

(I'm going off UK prices and stuff, I'm fairly sure the situation is very similiar in Europe (Seeing as otherwise people would just import it lol) but yeah the very basis of your argument is flawed).

And to probably save myself a reply, I've attatched a link showing HMV as one of the retilaers who began 3DS preorders at £229:

http://www.t3.com/news/nintendo-3ds-uk-release-date-and-price-announced?=52615


Sorry but who in there right mind would pay £230 for a portable device that has no wifi?

Don't get me wrong i am sure Vita will have some decent games but even the most bog standard of phones these days has wifi included. It isn't something that is expensive to include, deffinatly not £60 expensive.

If your paying £230 you expect all the features to be included in it for that price.

As i said before if people are buying it then just for the games then who will pay £230 just to play Uncharted/LBP and Mod Racers? You might aswell buy a PS3 and get the new U3 game!



*Sound Of Rain on 28 July 2011

I have been 1 of the few who have always said that the 3DS will sell a lot.(Even after its sales were low) I have been saying that the 3DS will be huge this Holiday. Now the 3DS will be HUGE this  Holiday. I say this Holiday and not right after the Price Cut because while price was a big problem(Though I think its easily worth the full $250) games were an even bigger issue. When big games start releasing this Holiday 3DS will explode. Don't get me wrong...I think 3DS sales will increase after the Price Cut...just the big effect will be seen during the Holiday's.

Now about PSV.(Now what I call it) I have also always thought that the 3DS would outsell the PSV. I thought the PSV would still do decent though. The upcoming Price Cut I think will kill any chance the PSV had at outselling the 3DS. 

Prediction:

3DS sales AT LEAST 125 Million

PSV sales AT MOST 60 Million

 

 



ctalkeb on 28 July 2011
Hyruken said:


Sorry but who in there right mind would pay £230 for a portable device that has no wifi?


No one looking for a PSV. For obvious reasons you seem to have missed.