Dark Chaos said: Short term. Sony didn't make any money off the PS3. In fact they lost billions on the PS3 so I'd say they are not gonna be a lot more conservative this gen. Sacrificing profit like last gen is not feasible anymore, not for a company like SONY that is already losing a lot of money. In the console business Market Leadership isn't as important as people posting in the internet seem to think. If it was so the PS3 would have sold like hot cakes, the Wii U would be selling well yet both didn't happen. I don't need to study business because its mostly common sense. If Sony followed your footsteps we would have seen a $150 Vita out by now but yet they haven't because they rather be profitable with the Vita than sell a couple million more to satisfy their fans on the internet. You say you studied business yet you speak only in terms of sales as "winning". Real life isn't all sales. Just ask all the AAA developers who have shut down even after selling millions of their games. |
You do understand that the PS4 is already selling at a profit, correct? They don't need to "sacrifice profit", if you read what I wrote a little better, you"d see the "how much companies are willing to sacrifice in short term profits in order to attain a dominant market leadership position" part. Sony already HAS a dominant market leadership position. They don't need to sacrifice profits to gain position, just maintain their lead. Which is MUCH cheaper.
And your statement: "In the console business Market Leadership isn't as important as people posting in the internet seem to think. If it was so the PS3 would have sold like hot cakes" is a complete non sequitur. Sony lost market leadership with the PS3 (bad decisions, poor marketing, lousy price point and head start by Xbox) and is not the leader in portable gaming.
You'd be surprised how many businesses go under due to the owners thinking that "common sense" is enough. As you don't have any business acumen whatsoever, you might want to avoid assuming what "my lead" is in case it gets "followed". Actually, Vita is a lost cause, it will never gain market leadership due to enormous lead the 3DS has over it. At this point, it's going to have to be content at being a market follower and try and carve out a niche market within the portable gaming market. A price drop isn't going to help it unless it sells at a vastly lower price than the Vita and why would they? Gaining market leadership in portables is no longer within their reach.
I actually began writing a small essay regarding the importance of an early market leadership position and how it is relevant to the console gaming industry as a whole and realized it was simply a waste of time as I doubt you'd even read it or try to understand it. Will PM you how far I got if you want, however.
A strawman and another non sequitor. When did I say that sales = real life success? And, btw, market leadership isn't about selling a lot, it's about establishing a dominant market share within the industry. AAA developers closing has nothing to do with any of this as their "brand" is only about as strong as their next game, it's the publishers (EA, Activitision, Ubi) that carve out sustainable leadership positions in this industry.
Bottom line, you don't know what you're talking about. Sony's stock prices has nothing to do with the thread topic cept maybe to take the discussion on a meaningless tangent. Here is the thread title so we can get back on topic:
X1 will never catch or match PS4 sales ----> you already agreed to this, so moving on.
X1 is a misfired product ----> seeing as they lost their dominant NA market leadership position, you will have to be able to agree to this as well. They're fixing things, but as the term "misfire" implies the start to short term, it is unequivocally correct.
Is Xbox a failure as a product? Time will tell. But for now, they are simply getting trounced by their nearest competitor.
Talking about Sony's bad financials is just a desperate attempt at bringing an irrelevant matter just to have some sort of talking point to fall back on.
So let's go back on topic shall we?