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Forums - Sony Discussion - Do you think Sony regrets pricing the PS4 at $400?

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Mr Puggsly on 01 November 2013

As a consumer, I'm glad the PS4 is $400. However, even if it were $500 I'm certain PS4 would have outsold the competition or all of their holiday inventory.

Its obvious Sony wanted to make sure their price was competitive with MS. But maybe they were too concerned with MS and threw a lot of money out the window.

 

According to this article ( http://www.bbc.co.uk/news/business-24753856 ) Sony's profit forecast went from 50 billion yen to 30 billion yen ($305 million).

Let’s say Sony sells 5 million PS4 units by year's end. If it were $100 more expensive, times 5 million, that would have generated an additional revenue of $500 million dollars!

I've read Sony will lose $60 for every console sold. If true, each unit sold could be a $40 profit at a $500 price tag. So... $40 x 5 million would be a $200 million profit. That would have greatly boosted their profit forecast.

So did Sony make a mistake when pricing the PS4? Were they too worried about competing with MS?



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DD_Bwest on 01 November 2013

No, I dont think they do. I think they are VERY proud of the 399.



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ice on 01 November 2013

maybe, I think they could've gotten away with $500



Normando on 01 November 2013

Nope, because MS would have said "Looks! Same price but you get Kinect!" and that would hurt PS4 sales.



Panama on 01 November 2013

No. Might have been able to get away with $450 though.



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Raven722 on 01 November 2013

I doubt it. The price they're selling it at is probably one of the biggest reasons why it's enjoying the initial success it has. It makes it very easy for them to market it as the cheaper alternative for many third-party games with no apparent disadvantage.



Mr Puggsly on 01 November 2013
Normando said:
Nope, because MS would have said "Looks! Same price but you get Kinect!" and that would hurt PS4 sales.

No, Sony would have argued you're getting a more powerful machine over Kinect.

Sony fans are core gamers and would argue they prefer power over the Kinect.



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Fusioncode on 01 November 2013

If they priced it at 500$ they would have probably included the camera which would have cut profits down anyways. Maybe not to the same extent though. Ultimately the lower price give Sony the advantage of selling much more consoles. As a result, software sales would be much higher generating more profit.



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Mr Puggsly on 01 November 2013
Raven722 said:
I doubt it. The price they're selling it at is probably one of the biggest reasons why it's enjoying the initial success it has. It makes it very easy for them to market it as the cheaper alternative for many third-party games with no apparent disadvantage.

But both machines are going to have great initial success. There is also no guarantee the X1 would outsell the PS4 at an equal price.

If Sony marketed their machine is more powerful and ports are their platform are superior, that would still give them an edge.



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zorg1000 on 01 November 2013
Normando said:
Nope, because MS would have said "Looks! Same price but you get Kinect!" and that would hurt PS4 sales.

If Sony priced PS4 at $500 they probably would have included the camera.



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