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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
ctalkeb said:
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.



Sorry not sure i follow you.

Are you saying people who want a Vita are people not interested in it being a portable? Implying they are just after the games?

The 3ds has a gimmick behind it, it may not be great but it is a reason it is different. What is the Vita gimmick that i obviously have missed that will make it be worth £279? 



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PSV is still a fantastic deal at $249, 3DS never was.



Atto Suggests...:

Book - Malazan Book of the Fallen series 

Game - Metro Last Light

TV - Deadwood

Music - Forest Swords 

o_O.Q said:
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?

On the price, you must have miss-read my first paragraph where I described the "bait and switch" strategy that Sony could use to sell the PS Vita for a higher price to compensate for foreign exchange losses. Effectively they take the strategy of the PS3 and don't manufacture the lower end PS Vita and discontinue it because of low demand, and on the higher end system use the strategy of the PSP (in some regions like Canada) where it was only ever sold in a bundle so its actually price to consumers is $350. The net effect to the average user who wanted the $250 PS Vita is they would be forced to buy the 3G PS Vita with features they don't want that only comes bundled with a game they may not want for $350, which would almost be $200 more than the 3DS; which is why I said this would no longer be a viable strategy.

 

As for the Wii U controller ...

Touch screen color ebook readers at a similar resolution to the Wii U controller are already selling for under $100 from cheap chineese manufacturers, and products like this are often only carried by retailers because their margins are relatively high, so their manufacturing cost is probably substantially below $50. On top of this, besides the touch screen the most expensive components in these devices (CPUs, Memory, internal storage, etc.) will not be needed in the Wii U controller because it is a dumb terminal where all the processing is handled by the system. Beyond that, most of the other components in the Wii U controller have been around for years and are readily available in cheap toys and electronics that are often sold for less than $10. And finally, there is a full 12 months between now and the release of the Wii U and these (already commodity) components are likely going to see further price reductions.

While I have no doubts the Wii U controller will probably be the most expensive standard controller released for a system, and it may end up selling for between $80 and $100 if Nintendo wants to maintain the margin that has become typical for accessories, I think the people who believe the controller will lose Nintendo money if they sell it for less than $100 because it has some loose resemblance to a tablet PC are just demonstrating that they don't have a clue what they're talking about.



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.

They always do $=€ so 3DS will be €170 in Europe. Vita's wifi model will be €249. Big difference, but not nearly twice as much, more like 45%.

And the price in pounds hasn't been specified, but it won't be 279 when the price in euros is 249, it will probably be £199 to £229. £229.99 is a good guess because that's the 3DS' official price now in the UK and PSV was meant to cost the same as 3DS elsewhere.

I also don't think the 3DS's price will be £120. As I said, today's official price is £229.99. Yes, most shops have discounts, but they'll probably stop doing that once the price comes down, because the reason to have a discount in the first place was that it was too expensive, which won't be a problem anymore. So the price should come to £149 (229-30%=153).

£149.99 to £229.99, that will probably be the difference. £70.



No troll is too much for me to handle. I rehabilitate trolls, I train people. I am the Troll Whisperer.

Poor Sony. I want to see if this drastically changes 3ds's sales before I crown it as sales victor for the gen.



"Everything we hear is an opinion, not a fact. Everything we see is a perspective, not the truth." -My good friend Mark Aurelius

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Hyruken said:
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!

 The Wifi only model is £230 (It has wifi, thats why its wifi only, was that hard to follow?...)

Infact, reread my post, reply to it with logic, reason and any sort of actual sense and I'll answer you - but that reply is just a waste of my time. 

 If you're too dumb to follow a 12 word sentense or something I'll sum it up for you. The 3DS cost £229 at launch - but retailers cut the price. The same will happen to the Vita, your point is moot.



HappySqurriel said:
o_O.Q said:
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?

On the price, you must have miss-read my first paragraph where I described the "bait and switch" strategy that Sony could use to sell the PS Vita for a higher price to compensate for foreign exchange losses. Effectively they take the strategy of the PS3 and don't manufacture the lower end PS Vita and discontinue it because of low demand, and on the higher end system use the strategy of the PSP (in some regions like Canada) where it was only ever sold in a bundle so its actually price to consumers is $350. The net effect to the average user who wanted the $250 PS Vita is they would be forced to buy the 3G PS Vita with features they don't want that only comes bundled with a game they may not want for $350, which would almost be $200 more than the 3DS; which is why I said this would no longer be a viable strategy.

 

As for the Wii U controller ...

Touch screen color ebook readers at a similar resolution to the Wii U controller are already selling for under $100 from cheap chineese manufacturers, and products like this are often only carried by retailers because their margins are relatively high, so their manufacturing cost is probably substantially below $50. On top of this, besides the touch screen the most expensive components in these devices (CPUs, Memory, internal storage, etc.) will not be needed in the Wii U controller because it is a dumb terminal where all the processing is handled by the system. Beyond that, most of the other components in the Wii U controller have been around for years and are readily available in cheap toys and electronics that are often sold for less than $10. And finally, there is a full 12 months between now and the release of the Wii U and these (already commodity) components are likely going to see further price reductions.

While I have no doubts the Wii U controller will probably be the most expensive standard controller released for a system, and it may end up selling for between $80 and $100 if Nintendo wants to maintain the margin that has become typical for accessories, I think the people who believe the controller will lose Nintendo money if they sell it for less than $100 because it has some loose resemblance to a tablet PC are just demonstrating that they don't have a clue what they're talking about.


even if that was the case how does $300 - $170 = $200 ? ( i don't get where the assumption of a bundled  game comes from the announced prices are $250 and $300 and whenever sony does bundle games the bundle usually retails for the same price as the original sku )

i don't see it being very likely at all that the $250 model will be in less demand anyway so the point on a whole didn't make much sense imo

in terms of the wii u controller we'll see



It's doomed!!

Nah, it just has less chance in outselling it



o_O.Q said:
HappySqurriel said:
o_O.Q said:
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?

On the price, you must have miss-read my first paragraph where I described the "bait and switch" strategy that Sony could use to sell the PS Vita for a higher price to compensate for foreign exchange losses. Effectively they take the strategy of the PS3 and don't manufacture the lower end PS Vita and discontinue it because of low demand, and on the higher end system use the strategy of the PSP (in some regions like Canada) where it was only ever sold in a bundle so its actually price to consumers is $350. The net effect to the average user who wanted the $250 PS Vita is they would be forced to buy the 3G PS Vita with features they don't want that only comes bundled with a game they may not want for $350, which would almost be $200 more than the 3DS; which is why I said this would no longer be a viable strategy.

 

As for the Wii U controller ...

Touch screen color ebook readers at a similar resolution to the Wii U controller are already selling for under $100 from cheap chineese manufacturers, and products like this are often only carried by retailers because their margins are relatively high, so their manufacturing cost is probably substantially below $50. On top of this, besides the touch screen the most expensive components in these devices (CPUs, Memory, internal storage, etc.) will not be needed in the Wii U controller because it is a dumb terminal where all the processing is handled by the system. Beyond that, most of the other components in the Wii U controller have been around for years and are readily available in cheap toys and electronics that are often sold for less than $10. And finally, there is a full 12 months between now and the release of the Wii U and these (already commodity) components are likely going to see further price reductions.

While I have no doubts the Wii U controller will probably be the most expensive standard controller released for a system, and it may end up selling for between $80 and $100 if Nintendo wants to maintain the margin that has become typical for accessories, I think the people who believe the controller will lose Nintendo money if they sell it for less than $100 because it has some loose resemblance to a tablet PC are just demonstrating that they don't have a clue what they're talking about.


even if that was the case how does $300 - $170 = $200 ? ( i don't get where the assumption of a bundled  game comes from the announced prices are $250 and $300 and whenever sony does bundle games the bundle usually retails for the same price as the original sku )

i don't see it being very likely at all that the $250 model will be in less demand anyway so the point on a whole didn't make much sense imo

in terms of the wii u controller we'll see


In that scenerio there exists practically no $250 PS-Vita, and the 3G PS-Vita is only sold for $350 bundled with a game ... Much like how the 20GB PS3 was practically never manufactured, and Canadian PSP fans were initially forced to buy for Gretzky Hockey in a bundle.

I don't see what is so difficult to understand about this hypothetical, and I grow tired of explaining it being that I believe the price cut of the 3DS makes it not an effective strategy for Sony to follow.



facepalm

so much doom and gloom for the psv..what else is new though..ninty fans especially cried doom and doa with 3ds reveal last year..people faught me with me saying ninty won't mess up with ninty and even saying there's a probability is a joke...

LOL

I even saw comments saying this price drop was their plan all along to mess with vita....I mean what a joke. people can be so blind sometimes that they don't want to see what's right there in front of them

and with psv ..sony clearly understands that they can't compete with smartphones etc..they have 'clearly' stated this. that is exactly why they will base their expectations on the device as such. they have stated that early on they just want to target the core gamer audiences which is exactly what should be done at that price point.

also unlike ninty they are NOT putting all their eggs in one basket with PSV....Sony as a whole are targeting different markets at the same time...people can argue all they want about this from the pov of a business strategy but in todays market that is how it should be. they are coming out with phones, tablets. ps suit etc etc to compete in the mobile gaming arena and I believe this is the right move. you absolutely can not compete well with game dedicated devices alone and this will come to bite ninty in the ass in the future as well. they underestimate the mobile market place.

Sony will do much better this time around since they have a clear plan..they will come out with a set of goals and will hit it because they won't expect beyond reasonable means unlike ninty. time will tell if this is true or not but seeing how they have handled the device so far I have some faith in them they will do just that.



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