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

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Osc89 on 01 November 2013
attaboy said:
Mr Puggsly said:
attaboy said:
as long as they're profiting from the hardware, no need to be greedy. $400 isn't chmp change, either. Many gamers will be looking for a price drop.

But from what we're hearing, they aren't profiting on the console at $400. They hope to profit from sales of software, accessories, and PS+ subscriptions.

I feel the great launch demand X1 is having shows the PS4 could have done really well at $500 as well. Sony might regret leaving all that money on the table in fear of competing with MS.


Oh. Shit. Sony isn't profiting from their hardware?  Not good.  I'm sure they'll sell more but losing money for years on PS3 and not charging for PSN as well as the debacle that is the Vita--I thought Sony would try to profit as soon as possible.


While the Vita sells pretty badly, it doesn't actually lose them money.

http://www.gamesthirst.com/2011/06/08/ps-vita-will-be-profitable-on-day-one/

http://www.eurogamer.net/articles/2012-01-20-is-the-playstation-vita-worth-230

I think they are following the same strategy with the PS4 and keeping it profitable. That was apparently why they dropped the camera.



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Mr Puggsly on 01 November 2013
bubblegamer said:
attaboy said:


Oh. Shit. Sony isn't profiting from their hardware?  Not good.  I'm sure they'll sell more but losing money for years on PS3 and not charging for PSN as well as the debacle that is the Vita--I thought Sony would try to profit as soon as possible.

Sony not profiting is not true, nobody knows for sure. "from what we hear'' is not a valid source. This is from E3 time;

Pachter: Sony “Almost Certainly” Making a Profit on $399 PS4

http://www.playstationlifestyle.net/2013/06/11/pachter-sony-almost-certainly-making-a-profit-on-399-ps4/

Here's a more reliable source...

http://www.eurogamer.net/articles/2013-09-20-sony-expects-to-recoup-playstation-4-hardware-loss-at-launch



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Mr Puggsly on 01 November 2013
Osc89 said:


While the Vita sells pretty badly, it doesn't actually lose them money.

http://www.gamesthirst.com/2011/06/08/ps-vita-will-be-profitable-on-day-one/

http://www.eurogamer.net/articles/2012-01-20-is-the-playstation-vita-worth-230

I think they are following the same strategy with the PS4 and keeping it profitable. That was apparently why they dropped the camera.

This article says otherwise in regards to PS4. http://www.eurogamer.net/articles/2013-09-20-sony-expects-to-recoup-playstation-4-hardware-loss-at-launch



Recently Completed: 
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Osc89 on 01 November 2013
Mr Puggsly said:
Osc89 said:


While the Vita sells pretty badly, it doesn't actually lose them money.

http://www.gamesthirst.com/2011/06/08/ps-vita-will-be-profitable-on-day-one/

http://www.eurogamer.net/articles/2012-01-20-is-the-playstation-vita-worth-230

I think they are following the same strategy with the PS4 and keeping it profitable. That was apparently why they dropped the camera.

This article says otherwise in regards to PS4. http://www.eurogamer.net/articles/2013-09-20-sony-expects-to-recoup-playstation-4-hardware-loss-at-launch


It's not very clear. Is it factoring in labour, R&D, marketing and distribution? I guess we'll know more when they do a breakdown.



PSN: Osc89

NNID: Oscar89

Farsala on 01 November 2013

No, because Sony got major flack this gen for PS3 pricing. $500 would seem excessive for a console even now.



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binary solo on 01 November 2013

I don't think Sony regrets it but I do think they went $50 light on the price. $449 PS4 vs $499 Xb one would still have given PS4 a marketing advantage in the launch warz. But the risk was sending possible PS4 buyers over to Wii U.

$499 would have given MS a marketing edge with Kinect, and losing $10 per console instead of $60 is perfectly fine for the launch period.



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Pemalite on 01 November 2013

Sony recoups some of their losses by overpricing in other territories.
Granted it doesn't cover the US market, but it does help.




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ironmanDX on 01 November 2013

No. They'll gain a good foothold early this gen partially because of it and get their money back later through games and accessories. It really would have helped them though, launch consoles will all sell out. That's money they're missing out on now.



Mr Puggsly on 01 November 2013
binary solo said:
I don't think Sony regrets it but I do think they went $50 light on the price. $449 PS4 vs $499 Xb one would still have given PS4 a marketing advantage in the launch warz. But the risk was sending possible PS4 buyers over to Wii U.

$499 would have given MS a marketing edge with Kinect, and losing $10 per console instead of $60 is perfectly fine for the launch period.

I really doubt a $500 PS4 would send many users to Wii U due to the abysmal 3rd party selction. Worst case scenario, many users would just stick with or go to PS3 and 360.



Recently Completed: 
River City: Rival Showdown for 3DS (3/5) - River City: Tokyo Rumble for 3DS (4/5) - Zelda: BotW for Wii U (5/5) - Zelda: BotW for Switch (5/5) - Zelda: Link's Awakening for Switch (4/5) - Rage 2 for X1X (4/5) - Rage for 360 (3/5) - Streets of Rage 4 for X1/PC (4/5) - Gears 5 for X1X (5/5) - Mortal Kombat 11 for X1X (5/5) - Doom 64 for N64 (emulator) (3/5) - Crackdown 3 for X1S/X1X (4/5) - Infinity Blade III - for iPad 4 (3/5) - Infinity Blade II - for iPad 4 (4/5) - Infinity Blade - for iPad 4 (4/5) - Wolfenstein: The Old Blood for X1 (3/5) - Assassin's Creed: Origins for X1 (3/5) - Uncharted: Lost Legacy for PS4 (4/5) - EA UFC 3 for X1 (4/5) - Doom for X1 (4/5) - Titanfall 2 for X1 (4/5) - Super Mario 3D World for Wii U (4/5) - South Park: The Stick of Truth for X1 BC (4/5) - Call of Duty: WWII for X1 (4/5) -Wolfenstein II for X1 - (4/5) - Dead or Alive: Dimensions for 3DS (4/5) - Marvel vs Capcom: Infinite for X1 (3/5) - Halo Wars 2 for X1/PC (4/5) - Halo Wars: DE for X1 (4/5) - Tekken 7 for X1 (4/5) - Injustice 2 for X1 (4/5) - Yakuza 5 for PS3 (3/5) - Battlefield 1 (Campaign) for X1 (3/5) - Assassin's Creed: Syndicate for X1 (4/5) - Call of Duty: Infinite Warfare for X1 (4/5) - Call of Duty: MW Remastered for X1 (4/5) - Donkey Kong Country Returns for 3DS (4/5) - Forza Horizon 3 for X1 (5/5)

Zappykins on 01 November 2013

I think they regret it. For one important and obvious reason.

When they set the $399 price they thought they would be making a small amount of money on the console itself. At the very worst, should the dollar/yen have an adjustment, it mean they just break even - so once they sell a game they would be at profit.

Currently, they are losing money on each console. That's not a good thing for them right now. Not at all.

Sony has alway had great launches. Even the often maligned PS3 had a must better launch than the Xbox 360. Both are going to mostly sell out this launch. It would be much better for them to be making a profit.

And yes, a $499 price tag wouldn't probably have turn them too bad, as the early adopters would get it anyway. But it would I think kill them down the road.



 

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