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Forums - Sony Discussion - Did Sony get too cocky not matching the Xbone's price drop this holiday season?

Tachikoma said:
conversely, are xbox fans getting too cocky after a couple weeks of decent sales?



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Mr Puggsly said:
DialgaMarine said:
Mr Puggsly said:

Again, I think this is the first generation where people are surprised a console manufacturer is losing money early on.

Money is one of MS's strength and they are taking advantage of it. In past generations money was a strength of Sony as well and that gave them an edge.

 Selling at a loss in the begining has only really ever been common with Sony. Microsoft never once sold the 360 at loss, nor did they ever sell the original Xbox at a loss. Yes, Microsoft has money, but they've never been a company known for losing money on a product for too long before they just give up and end it (Zune, anyone?). It's kindof why they have all that money to begin with. I guarentee that they're not going to accept losing all this money for long if it continues to yield only decent results at best. Let's not forget that the PS4 STILL outsold XBone WW this past week despite XBone having so much favor. Right now, they're more or less capturing the impulse buyers who taking advantage of the temporary price drop. One the price goes back up after the holidays and CoD dust settles, they'll be right back to being far behind PS4. 

Sony doesn't have to worry about money right now because the PS4 is still beasting as it has stood all year long, so they're still making money. 

You assume MS never sold the 360 at a loss, I doubt that's true. It was a very powerful and reasonably priced console at launch.

Use your head, you know there are plenty of things MS funded for many years without seeing a profit. They dropped Zune and put their focus on Windows Phones and Tablets. The iPod lost relevance as Apple put their focus on other products. But how is the Playstation Vita doing? Sony is still pouring money into that, right?

As the X1 userbase grows it becomes more financially worthwhile. Just like with 360 and PS3, they were losing billions of dollars but arguably became financially worthwhile later on. Fortunately for MS I don't believe X1 is losing PS3 or 360 levels of money.

PS4 is making money but not Sony. So they can't throw money around to stop competition from thriving like they've done in the past.

 That's not an assumption, it's a fact. From the day the 360 released in 2005, MS was making a profit of $75 per console. Same story with the original Xbox. 

Name said things?

Strange. Noone ever made that argument for PS3. 

Funny, Sony recently posted that they're in their best financial position since 2011. The company isn't doing anywhere near as bad as people like to claim. Also, interesting statement, because Microsoft has neveeer used their money to stop the competition from thriving. Sega Dreamcast and Halo anyone?





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DialgaMarine said:
Mr Puggsly said:

You assume MS never sold the 360 at a loss, I doubt that's true. It was a very powerful and reasonably priced console at launch.

Use your head, you know there are plenty of things MS funded for many years without seeing a profit. They dropped Zune and put their focus on Windows Phones and Tablets. The iPod lost relevance as Apple put their focus on other products. But how is the Playstation Vita doing? Sony is still pouring money into that, right?

As the X1 userbase grows it becomes more financially worthwhile. Just like with 360 and PS3, they were losing billions of dollars but arguably became financially worthwhile later on. Fortunately for MS I don't believe X1 is losing PS3 or 360 levels of money.

PS4 is making money but not Sony. So they can't throw money around to stop competition from thriving like they've done in the past.

 That's not an assumption, it's a fact. From the day the 360 released in 2005, MS was making a profit of $75 per console. Same story with the original Xbox. 

Name said things?

Strange. Noone ever made that argument for PS3. 

Funny, Sony recently posted that they're in their best financial position since 2011. The company isn't doing anywhere near as bad as people like to claim. Also, interesting statement, because Microsoft has neveeer used their money to stop the competition from thriving. Sega Dreamcast and Halo anyone?




I honestly don't believe the 360 was sold at profit. Certainly not the $299 core consoles.

Name said things? Bing, phones, tablets, Xbox, etc.

By the way, there is a perception that Zune was some failure that came and went quickly. But the reality is Zune was produced for 5 years and then MS put its focus on other mobile devices like WIndows Phone. I think its funny Sony fans keep mentioning Zune even though Vita is a failure that Sony barely supports. Sony even renamed the Vita TV to Playstation TV, they want people to forget about Vita.

Sony is cutting losses buy getting out of markets. Thus becoming a less relevant company.



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Even if they loose NPD they will keep their worldwide lead and most importantly their profit margin.



Also sony have big exclusives in Q1.. they're playing it smart from their end and presuming X1 wins the holiday in America, they will quickly regain lead following their main releases The Order, BloodBorne and Planetside. Maybe they'll even add fuel to the price and do a temp price cut in february ahead of all the big releases.



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teigaga said:
Also sony have big exclusives in Q1.. they're playing it smart from their end and presuming X1 wins the holiday in America, they will quickly regain lead following their main releases The Order, BloodBorne and Planetside. Maybe they'll even add fuel to the price and do a temp price cut in february ahead of all the big releases.

Exactly, they are still selling every unit they make and will have a great holiday. It doesn't matter if a media site, blogger or video game forum user whines about an exclusive list of games. Playstation, now has the cool must have image around the globe and their rope a dope technique this year has been great. In 2015, when Sony flexes those studio muscles it's going to be a tough time for MS and Nintendo.

MS really needs H5 to be out of this world as that is the last card to be played for them. QB remains to be seen as it looks good but so did AW and Xbox fans didn't support that title. Hopefully Remedy's next game will have a different result. Imo, it will end up like SO, all hype and then fizzle out like a bottle rocket. Fable is played out, Tomb Raider is timed and well Scalebound is Scalebound. It's Platinum games so it will get it's 500k in sales and they'll be content with that. Gears is the X factor but they won't release that next year and compete with Halo and Spencer says, they need to spread em out.



DerpSandwich said:
I seem to be in the minority, but I think they were indeed too cocky. They had Microsoft right where they wanted them, and this was a great opportunity to deliver a big blow. Instead they're giving the Xbone an edge.

Would a drop mean making less money per unit? Yes. But install base is more important than basically anything. And more Xbones landing in peoples' houses means more exposure and more curious friends and ultimately even more sales. You've got to keep your competition down, even if it means losing some money. They're in it for the long haul, and this is a sensitive part of the generation.

Most people don't look at specs and policies and stuff; they look at price. The Xbone entering the market at a higher price strangled it. Lowering the price boosted it. Lowering it further is going to do even more. Sony not matching them is ridiculous to me.


Me as well based off this thread.

 

I think if people think consumers go by what is the "trendy" system, I think they're going to be in for a rude awakening and quick. The 360 era showed that people look at value and library when considering a next gen system, not what all the cool kids have setting under their TVs.

If Sony's not careful they could lose their relevence in the US again, and that's not good seeing(like I said before) as most devs are from the west and it's one of the most important markets to have a stronghold on.



ICStats said:

What does "belief" have to do with it when we have financial data available?

In terms of succes, Candy Crush > Minecraft > Angry Birds.

Candy Crush makes ~$1 Billion per year.  Pretty good for a game people play on the shitter.  King and Rovio have more potential than Mojang though.


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Hiku said:

What do you feel Sony could do, besides react to this current price drop in the US? Because it's only been what...? One week.
They don't have to jump at every milisecond when the competition does something. Observing how it affects sales is probably the best thing for them right now. Because if it is a temoporary price cut as MS claims (and it might not be), then there will also naturally be a dip in sales the following weeks.
Anyway, what other things do you feel Sony could do to better compete with XBO?

Again, I'm just saying they can do more to slow down X1 sales. There is several obvious things they could do.

But right now profit is very important to Sony so that reduces odds of risk taking.



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I don't know...

They sold more in September and October... already have a 300k+ lead in sales... so something right they did.

Nobody knows how November and December sales will be... if they win again the your thread will be pointless.