By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Sales Discussion - 2015 is upon us... lets talk sales!!!!

small44 said:

Ps4 market share is already so good

True, but look at it this way. Speaking hypothetically;

  • every console you sell = an average of $400 in gamer revenue per year (at least)
  • at $400 you can sell 15M consoles per year = $6B in games sold revenue
  • so you can settle for increasing your revenue/sales by $6B every year or,
  • Cut the price to $350 so,
  • at $350 you are seling 20M consoles per year = $8B in revenue
Selling more consoles means you make more money from the games those new console owners buy in addition to the games that all your exixting console owners are buying. If slashing the price can ensure that you will have a spike in sold consoles (which it always deos), then thats what they will do. Cause there is more money to be made from the games sold to an overall larger install base than from an increased profit margin on the actual hardware sold at a higher price.


Around the Network
Intrinsic said:
small44 said:

Ps4 market share is already so good

True, but look at it this way. Speaking hypothetically;

 

  • every console you sell = an average of $400 in gamer revenue per year (at least)
  • at $400 you can sell 15M consoles per year = $6B in games sold revenue
  • so you can settle for increasing your revenue/sales by $6B every year or,
  • Cut the price to $350 so,
  • at $350 you are seling 20M consoles per year = $8B in revenue
Selling more consoles means you make more money from the games those new console owners buy in addition to the games that all your exixting console owners are buying. If slashing the price can ensure that you will have a spike in sold consoles (which it always deos), then thats what they will do. Cause there is more money to be made from the games sold to an overall larger install base than from an increased profit margin on the actual hardware sold at a higher price.

 

What if after 3 years ps4 slow down a lot and they already use their price cut card?

Price cut is used when you're console don't sell well even with a lot of game



PS4 - over 100 millions let's say 120m
Xbox One - 70m
Wii U - 25m

Vita - 15m if it will not get Final Fantasy Kingdoms Heart and Monster Hunter 20m otherwise
3DS - 80m

small44 said:

What if after 3 years ps4 slow down a lot and they already use their price cut card?

Price cut is used when you're console don't sell well even with a lot of game

nope, doesn't work that way. At $400 theer are only so many people that can or will buy a PS4 (or any console for that matter). There are those that will only ever even consider it when it gts to $300 cause thats within their budget. Doesn't mean that the people that would have bought it at $400 suddenly won't anymore.

So basically, if every month there are 500k people that are willing to spend $400 and there are 500k that will only buy at $300, dropping the price to $300 means you now get to sell 1M consoles per month instead of 500k. 

Another way to look at it is you can have 3 years of "good" sales at $400 and sell 15M consoles per year. So after 3 years you have 45M. Or you could have 3 years or "great" sales at $300 and sell 25M per year and have 75M after 3 years. 

45M or 75M in 3 years, which would you rather have?



Intrinsic said:
CommonNinja said:


Just like to coment on a few of your predictions...

1.)  No way MS drops the price that steep, they would be losing too much money, and just annoy investors.  Also, Sony aren't really in a position where they need to worry about Xbox so much, and considering that PS4 is selling so well at $400, and that sony is losing money, they will not care to drop the price any, and especially not $100.  Also...what do you mean price drop 'again'?

2.)  I could see this happening throughtout the first half of the year, but not for the total years sales.  Xbox One has some much bigger exclusives comming next year than this one.  Just think, next year you will have Quantum Break -> Forza 6 -> Rise of the Tomb Raider -> Halo 5 Gaurdians.  And Fable will be mixed in there somewhere maybe late spring/summer, and there is also the possibility of a Gears of War colection.

Halo will be huge for US and UK (already have 2 friends that are waiting for H5 to make the jump), but the other games like Tomb Raider, Quantum Break, and Forza 5 are games that could do quite will in Europe as well.  So I don't think they will sell less...I think they will be up year on year by about 20%.

3.)  Your joking right???  Well, I think it depends on how good the beta goes, and if they have a good E3 showing.  I personally though think it will move a ton of units.  

Your right about Halo MCC hurting them, but I think a lot of people are still going to wait simply because of the cost.  Like I mentioned earlier, I know a lot of people who are still waiting for Halo 5....

 

anyways, few disagreeances aside, you have some nice predictions in there!

 

  1. Agreed, that prediction may have been a bit overzealous. But a $50 price drop is pretty much a given. As for sony matching the price, as I said its not really about worrying about the XB1. Its about moving more consoles. The only thing stopping sony right now is sony themselves. MS will be dropping their price to prevent the gap from getting too large too quickly, sony on the other hand will be doing it to increase their market share as fast as possible. 

  2. Yes, XB1 does have some great games coming out next year.. no doubt about that. But the only real stand alone games in its list are Fable and QB. One of which is a new IP. By stand alone games I mean that every other game they are releasing is more or less a follow up to an existing IP from the franchise on the XB1. Hqlo MCC will have no doubt take away some sales from halo 5 and forza 4 and forza horizon has pretty much moved over most of the forza fanbase already. But if the XB1 has as bad as a first 9 months or even worse as it has this year, then all those games combined, even if they amount to 5M in sales... will not do much to the overall XB1's years end bottom line.

  3. That was actually my boldest prediction. You can't make predictions without throwing something crazy into the mix. tht was one of mine :)

 


1.)  That sounds reasonable.

2.)  Hmm, still not sure that all forza fans have moved.  There are a lot that switched to PS4, but may get X1 as a secondary console in the future once price is better, and a few more exclusives are out.

3.)  Ok, got it!  I'm personally super stoaked for the next halo, and so are my friends.  They aren't getting an X1 or MCC yet, but will probabally come over to my house to play it on my X1 :p.  343 really does have a lot to prove with this next game though.  A lot of people dissapointed with H4's Multiplayer, so hopefully they can recapture that lightning in a bottle with this next game (after all, Halo 4 was thier verry first game as a studio, so now that they have some experience).



The PS4 price cut might happen in Summer 2015. As far as official ones go, that is. No reason for them to do it earlier than that
Thinking that it won't happen simply because of it's great sales performance seems a but unreasonable. As long as they get the manufactoring costs down a bit it should be an easy decision because more important than a few dozen dollars per console is:

- more PS+ subscribers
- Market share for PR purposes and third party interest
- more SW profit



Around the Network

In 2015, my dream of Paper Mario 5 will finally happen (hopefully) and I will not care about any other video game that year lol.

I love each Paper Mario game for different reasons and I love how they are all unique games from one another:

1 - Classic and revolutionary at the same time.
2 - Enhanced the experience of the 1st one, introduced huge amount of new concepts/characters/battle modes.
3 - Way new game play style that was actually ridiculously fun to play allthe while maintaining the series strong story ability.
4 - I LOVED collecting all the stickers and actually having a "rewards" room for them which is something I never expected from Nintendo.

CAN'T WAIT FOR 5!!!!!!!!!!!!!! On Wii U no doubt! Can't wait to see how they revolutionize the series again!



it would be nice to have a vertical xbo. its so damn big. i really wish it was more like ps4 size and make.



 

LiquorandGunFun said:
it would be nice to have a vertical xbo. its so damn big. i really wish it was more like ps4 size and make.

I have a strong feeling that a redesigned XB1 will come next year. The PS4 is living proof that its possible to make something smaller than the current XB1. Honestly still don't know why its so big (besides their heat issues fears). I think next year Ms will throw everything at the race. A redesigned console could do wonders for them.

But this could very well be something that happens in 2016 and not 2015. Naybe they just focus on the value war in 2015.