MS is selling the X1 at a loss, but that's just pure despair. Sony kept the price and observed. They will keep making more money and probably put a killer bundle during BF and Christmas week, sell millions and avoid big losses. Right now they can afford being patient and wait do do their move.
Mr Puggsly said:
They didn't sacrifice billions, they invested billions! Its a top selling game on Playstation platforms! I'm sure MS is sacrificing money on the price and game bundles. But I don't believe its the kind of money Sony lost on PS3 or MS lost on 360 hardware issues. |
IMO they will never recoup their investment in Minecraft.
PS4's baseline has been 2 to 3 times higher than the XB1 this year, so for Sony to just match Microsoft's $50 price cut they would have to sacrifice 2 to 3 times the revenue that MS is, in order to bump sales. A permanent $50 cut for PS4 would likely equal near $1Billion lost income in the next 12 months, which is surely not what Sony can afford. Sales are already past Sony's expectations, so I doubt they will sacrifice their earnings that much in order to beat XB1 harder.
| ICStats said: IMO they will never recoup their investment in Minecraft. PS4's baseline has been 2 to 3 times higher than the XB1 this year, so for Sony to just match Microsoft's $50 price cut they would have to sacrifice 2 to 3 times the revenue that MS is, in order to bump sales. A permanent $50 cut for PS4 would likely equal near $1Billion lost income in the next 12 months, which is surely not what Sony can afford. Sales are already past Sony's expectations, so I doubt they will sacrifice their earnings that much in order to beat XB1 harder. |
Minecraft is still very popular. Not just game and DLC, but it also moves a lot of merchandise. A sequel could potentially move a lot of units as well.
Worst case scenario, MS should recoup a good chunk of the $2.5 billion they spent. MS has money so they can afford the risk.
You basically made my point with Sony. They don't need to beat X1 harder, but they certainly could. However, Sony not taking any risks is allowing the X1 to grow.
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| alabtrosMyster said:
But hey after what Destiny did, all the good press MS got over the last couple of months, etc. and the sales were still better on PS4, even I was thinking they were un beatable... The thing is, many people are on the fence, so a significant price difference can sway a lot of people, and the timing is great too because this is the holiday shopping season, so the effects are much bigger than in the summer months! |
Not really few are on the fence, MS now are selling to 360 owners who they finally managed to motivate to get new hardware. All the cut and bunldes has done is convince xbox owner t buy into the X1 earlier then later. To actually sway people they need a be $200 under the PS4 like the 360 was under the PS3, and that just not happening.
A market leader doesn't cut price less than one year after launch, if not absolutely necessary, it reeks of desperation.
BTW most probably PS4 is going to sell out anyway at the current price. After end of December - January clearance sales it will be sensible to start considering the first price cut.
| torok said: MS is selling the X1 at a loss, but that's just pure despair. Sony kept the price and observed. They will keep making more money and probably put a killer bundle during BF and Christmas week, sell millions and avoid big losses. Right now they can afford being patient and wait do do their move. |
The way I'm seeing is that Sony is currently being "shark in the water". When the opportune time comes, they will strike with ferocity.
No they don't get too cocky. Not even cocky.
It's a simple business decision. And one i can completely understand.
Its sad that people are willing to pay 50$ more for a 40% better GPU. Its just sad.
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