Alright oni-link, here's the issue I'm going to address. There is some confusion over the Vita's profitability. An Adriasang article claimed with an outrageous title that Sony was selling the Vita at a loss. However if you look at the Reuters interview where they got their info from to come to that conclusion, you will find that is not the case, in fact the extent of what was said is that the Vita will turn a profit(return on investment) after 3 years. It is not very precise on whether that is hardware alone or including everything Vita related. What Kaz specifically does not say is anything regarding to whether the Vita is selling at a profit or selling at a loss. He wasn't asked that question and he didn't answer that question. Andriasang simply wrote a bad article to fuel off of the heat that's risen from the Vita's launch. Just like every body else, I hate it when news reporters relay false information.

From available data it looks as if the Vita is currently making a small profit on each hardware sold. Perhaps only on the 3G models but it is hard to pin down a number. When the Vita costs $160 to manufacture having $90 to $140 of flexibilty to cover packaging, shipping, distribution, and retail it is very unlikely the Vita is selling at a loss or anything substantial as to not call it breaking even. It looks like a tiny profit and the majority of Vita profit will come from accessories and software, but the hardware is not loosing them ground. The 3 year period is simply what Sony expects it will take for all costs associated with developing and marketing the Vita to finally start earning them some cash as a whole. That's if the Vita stays on track with Sony projections, and the last I've heard those haven't derailled yet. Sony is being quite conservative after seeing the 3DS launch last year. Vita's future profitability depends on the reaching projected sales over the next 2 and 1/2 years. If it doesn't, it will just take longer, 5 years let's say. Either way Sony will support the system to ensure that they turn their ledgers associated with the Vita to black. Even in the odd chance the market losses all interest in handheld gaming Sony will push the Vita to ensure as much of the costs created from making the Vita are made up. This system will be supported until the next one comes or that whole 7-10 year period they have planned comes to an end.

Essentially terminating the Vita early in its life equates to Sony loosing a ton of money. Having the Vita in the market doesn't have a negative effect on Sony's home console offerings. If anything it is an augmentation to it and helps fuel fan base, interconnectivity, encourage more developers to look into their platforms, etc. etc.

*Cough*

We came to know few days ago that PSV costs are high, but lower than everybody feared, but I agree Sony must be particularly careful until a price cut will be viable to drive the price at a less unpopular level. Until then, everything possible must be done to attract the minority of deep pocketed buyers, that is GAMES and attractive features (much less important than games, anyway). As soon as PS3 price will drop to $199, Sony could also try a PS3 + PSV bundle at $399 (cutting $49 compared to the two purchased separately), bundled with a cross-platform game, that could be seen as a more flexible alternative to Wii U, with the "tablet" usable also alone. It's just one of many possible examples, as usual Sony consoles and portables are quite feature rich, Sony should focus on showing off and taking advantage of those already present, possibly enhancing them if necessary or feasible at low cost, and carefully evaluate costs and benefits before adding new ones.

This fukn thread still going?? Every god damn day i see this thread title and it just pisses me off

Now that you've replied to this thread, you get to see it in your forum buddy! You love it, really.

My opinion on this is: Sony is in no position to save the console at the moment in terms of price.

So, they should either ditch it completely and cut losses or increase the risk of investment and develop some triple AAA games to release around the same time they can finally afford a price cut (maybe next year?). Until then just stop producing them as they are gonna be a waste of money.

As i said before, the Vita came out too soon, so the only hope for it is to make a "relaunch" maybe with a new model and price cut next year.

Isn't Vita getting a full-fledged CoD game in Fall? Honestly, if that can't help it gain momentum I don't think anything can. Their biggest screw up was not securing Monster Hunter Portable exclusivity.

About MH, the first PSP version was launched in Japan when PSP had sold 2.2M units there (and 7.4M WW), and WW when PSP WW sales were at 13.3M. I guess PSV will have to wait another year before getting its first one.

It is very clear on the interview http://www.reuters.com/article/2011/06/07/sony-idUSWEN407220110607 that the PS Vita is losing money regardless of 3G or WiFi model.  The cost of manufacturing means almost nil when you consider that retailers often mark up hardware devices anywhere between 40-50%  or higher of what the manufacturer sells them for example.  Hence, the reason why the 3DS is still selling at a loss on a $170 retail price even though the B.O.M. is <$100. (@$170 Nintendo is selling the device to retailers at around $110 at 50% markup).  Though this debate is pointless as the interview already stated that the Vita is sold at a loss and cutting it's price is out of the question for Sony at the moment.

I totally agree as the Wii U will once again be releasing a year before PS4 comes out; and Sony will have to deal with a near simultaneous launch against Microsoft's 720 is going to be a daunting task for a company fighting to survive!!!

Retail markup is tiny, 3-5% at most. The money isn't in the consoles, it's in the games and in the accessories.