The PS3 sold at a $300 (or nearly $300 for the top model) loss initially didn't it?

Considering they arguably nearly made up for the loss and at least ended with less of a loss than the original Xbox, I could see an initial $30 - $80 loss at $449.99 retail considering the lack of cell and 2006 blu-ray equivalent.

Max King of the Wild said: osed125 said: Max King of the Wild said: osed125 said: pezus said: This could still mean that they'll be selling PS4 at a loss btw. Just that they don't expect to lose $400 on every PS4 like they did with PS3 . A $100 loss per PS4 and software that makes up for the initial loss is the way to go. $100 loss? That's insane, you will need to sell 14 third party games or 4 first party games per console to recover that money (based on this, for first party it will be $27 per game and $7 for third party games (platform royalties)). Although I don't know who gets the $7 from "Returns", most likely the publisher, which in that case it will be 3 first party games. Two words: Digital Distribution. (+ you aren't considering subscriptions or accessories.) Couldn't find anything about the anatomy of a digital game, but with the current graph the only thing that is not present in digital games is the "Cost of goods" which is $4. Digital games are still $60 so I don't know where the extra money goes. Let's say that instead of $7 for third parties and $27 for first parties it will be $17 and $37. So it will be 6 third party games or 3 games first party games, not that big of a difference.  Accessories do play a big part of profit for gaming companies, but I don't know what is average the attach rate for new consoles and accessories.  The cost they are saving on material, production, shipping, and retail cut are a lot greater than the cost of keeping up servers. Also, I wouldn't be surprised if Sony gets the retailer cut for 3rd part sales of DD. Another thing is Sony gets to dictate the price on their store and they tend to stay higher price longer than hard copies. I also wouldn't be surprised if we see a some $70 games. (though I hope not) Point? I think $100 is doable but that would be the max I'd expect.

Didn't Sony said they weren't planning $70 games?

I think those numbers are generous, because for first party games we have to take in mind the total dev costs and marketing, so the returns would be for the game itself and not the console (in the end the returns for the console would be the same as the 3rd party games).

I was hoping for something state of the art. I wanted 'em to take risks. I can't take pride if they indirectly admit defeat. I want something that is "exclusive" technology wise for at least a few months after launch. I don't give af if they profit or not.

^ You're wasting your time with consoles if that's what you want, consoles have and will always be well behind even at launch aside from a throwaway gimmick (which I guess is what you're asking for) or two.

Going off what AMD said though, it sounds like they have something like that anyways.

was their a breakdown of how much money the GC made? or could have the gameboy advanced covered the losses the GC made?

The GC took a $9 loss per unit for the first quarter at launch but was all profit after that.   Teh GBA and later the DS certainly provided a large portiion of thier profits during those years but the GC was by no means a financial flop itself.

I feel disrespected. That's what I want. But the want is always time behind wasting a new opportunity. There is still synaesthesia in gimmicks.

When did I say they would?  I said the Wii U is losing to the 8 year old 360, and the PS4 launching won't help the Wii U.  Whether or not PS3 prices affect the PS4 much is a whole other debate...

They took an even bigger loss when they dropped to $99 iirc, don't know on the first price drop, but considering it was less than 6 months after launch I wouldn't doubt it.

OK, I understand what you are saying now.  So let me pose a hypothesis for your original question/statement (again, not saying this will be true just throwing something out there).

Perhaps, if the PS4 is priced high enough, say 450-500, it will showcase the Wii U as a middle ground and not overpriced.  Right now the Wii U is the most expensive kid on the block.  With not many "big hitter" games, and crappy ports, it seems almost overpriced to a much more mature ps3/360.  You're paying for the tablet addition, but not many game showcase it yet...

However, with the release of the next xbox and PS4, pricing will shift.  People will have something more expensive to compare the Wii U to, almost like a reference point.  Just a thought.  Yeah the graphics will be more polished etc, but that will come at a premium.  And the controller will still not be a tablet.