??? | |||
| Yea | 46 | 20.91% | |
| Nay | 174 | 79.09% | |
| Total: | 220 | ||
Haha! No, I think they're ecstatic about how the pricing panned out. The only thing that didn't go according to plan (though ended up being a good thing for consumers) was the ram increase to 8gb, which forced them to drop the camera. I heard that they were high-fiving themselves at E3 when Microsoft dropped the $499/£429 bomb.
I think they don't mind because of European prices. Taking UK tax into account. £350 minus the 20% VAT is about £290. £290 at todays exchange rate is $460.
So, they are making an extra $60 on every UK PS4 sold. This will be more or less in other countries based on tax and Euro exchange rate.
Hmm, pie.
There's no way it would be doing so much better than XO if it was $500, especially since XO would have plainly better value with kinect 2 bundled in, that's for sure. The "sources" that say $60 are probably about right even if not legit, but that's worth the market/mind share being $100 cheaper gets you. It wasn't a last minute or reactionary decision, they've planned this long in advance, it's partly why they're charging for online now. They see it as worth it in the long run.
Let's keep in mind that this isn't close to PS3's ($200) or 360's ($130) losses at launch.
After reading comments, I still think the PS3 could have got away with $499 and it would have put them in a financially better position.
Even $449 would still have gave them a good price edge on the X1. But $399 shows they were really concerned about MS.
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| Mr Puggsly said: After reading comments, I still think the PS3 could have got away with $499 and it would have put them in a financially better position. Even $449 would still have gave them a good price edge on the X1. But $399 shows they were really concerned about MS. |
Of course they were concerned about MS. I doubt they were concerned about Samsung, HTC, or Huawei, it wouldn't make any sense. You seem to imply it is a bad thing. Though I doubt they are concerned as much right now.
With the price being as it is, they will steal a lot of customers from competition. Those customers will buy a lot of games. They will buy lots of PS+ subscriptions. That money lost will be recovered easily (and it wouldn't be 500milion, they would include the camera). It is not hard to see. 5 million extra customers with a game and 1 year PS+ plus purchase will bring in more than that.
If it was $500 I wouldn't be buying it.
I think they are happy with the price tag they set.
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I think MS is concerned with Sony...
| Sal.Paradise said: Haha! No, I think they're ecstatic about how the pricing panned out. The only thing that didn't go according to plan (though ended up being a good thing for consumers) was the ram increase to 8gb, which forced them to drop the camera. I heard that they were high-fiving themselves at E3 when Microsoft dropped the $499/£429 bomb. |
It is amazing how almost everything progressed in Sony´s favour (with the only exception beeing the fire that burned those GDDR5 facilities)...in contrast to MS, they got almost everything wrong (hardware, PR etc.)
Both parties deserve what they get
I just hope that Nintendo gets the scrabs to keep on trucking....T.T
| Mr Puggsly said: 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? |
Nah, that small loss on each console will easily be made up in Software. This is not PS3 level losses here.
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