Watch from 3:45 - http://www.youtube.com/watch?v=R5NcFSIZDEs. This really goes against what bloomberg is reporting. Reggie says it will be sold at a profit. I hope its not selling at a loss, waiting for Nintendo to comment.
| Vinniegambini said: Watch from 3:45 - http://www.youtube.com/watch?v=R5NcFSIZDEs. This really goes against what bloomberg is reporting. Reggie says it will be sold at a profit. I hope its not selling at a loss, waiting for Nintendo to comment. |
Yeap but this video is dated.
Nintendo itself said they are selling the Wii U at a loss but I think it's Nintendo Japan for now.
VGKing said:
Sony won't be using alien technology on the PS4. This means that even if they take a big loss at launch, those losses will go down fast over time.(unlike the PS3) |
What I've been saying for quite some time is that SONY can't afford to lose money next time around, and PS4 won't be such a leap over WiiU as PS3 was over Wii. It'll definetly be stronger - I don't think anyone doubts that - it just won't be an überconsole.
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It must be the controller. I think in Japan they said it's being sold separately for ~176 USD.
Tough times.
I wonder if the continued rise of the Yen is one of the pressures influencing this decision.
Well, third parties, you got what you wanted. Nobody in consoles is making money on hardware anymore.
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pezus said:
$399 is $100 more than $299, subtract the difference in production price between WiiU's controller and a Dualshock 4 and the difference grows more. Add in hardware cost to the PS4 and the controller business is almost balanced out. Nintendo are probably making a very small loss on this, so we'll assume $50 per $299 machine. Sony will likely be losing more from the start. That makes 1 year at least in hardware advancements plus $110 plus the difference in losses. Even if they sold the PS4 at no loss, the difference would still be over $100 and a year at least in development. Why would that not be enough for a significant jump? Consider that they are selling the PS3 at $250 or so and profiting while they're at it. Next year they'll be selling it at $199. A $200 jump from PS3 in pure power will (and it should) be very noticeable, even from the start. Wii U has shown very small jumps over PS3 games (some look equal, some look worse, some look slightly better, exclusives are not graphical beasts either). So, assuming a $200 jump from PS3 to PS4, why wouldn't the jump be significant? |
First and foremost, you can't make any argument using US dollars. Sony, and Nintendo, are Japanese companies, and therefore we have to talk in Yen. $399 is roughly 31 800 Yen, which is roughly the price tag of the premium Wii U bundle (31,500). The basic Wii U is 26,250 Yen - which is roughly $329.
Selling the PS4 at $399 would be $70 more than basic Wii U in Japan, using your argument. And subtracting the cost of producing the controller which - using this thread as a basis - could be $50, the basic WiiU costs around $279 to make. I'm not sure that a $399 console would be a major leap over a $279 console.
I'm not arguing that there won't be differences. I fully believe that WiiU will be the weakest of the bunch next gen, but not as much that it'll receive gimped 3rd party titles like the Wii suffered from.
Sony is in a bad financial situation. They've got more debts than they've got money in the bank. They've had their credit rate cut several times. The Yen is much stronger relatively towards the dollar and euro than 6 years ago. They cannot afford making a console more expansive than 32k Yen. And they can't afford selling a console at a $100 loss.
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| HappySqurriel said: You have to factor in the cost of doing buisness in Europe ... There are higher regulatory costs, labour costs and taxes which all translate to it being more expensive to produce/sell anything throughout most of the Eurozone; and this results in goods being more expensive. |
You're right about the taxes, forgot to factor that in, don't know if they are also included in the Japanese prices.
Galaki said:
People believe Sony can make a console at least 3x stronger than the WiiU at the same price. I believe them. |
My inside sources tell me that they have their top alchemist working on it. Also those alchemist are not paid that well.
green_sky said:
My inside sources tell me that they have their top alchemist working on it. Also those alchemist are not paid that well. |
It's completely possible. Sony doesn't have a problem with losing $200 or so on each system sold.
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F0X said:
|
The only time they took a loss that big on each system was with the PS3, and they won't be repeating that mistake. Sony can put out a significantly more powerful system than the Wii U for a similar price, taking a small loss.
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