Intrinsic said:
Exactly. All sony has to do is business as usual and they will at the very worst sell as well as they sold this year next year. Thats not bad. No one would or should have to do what MS is doing to win just a month or two in just one region. And theer is no way MS can keep up that kinda agressive marketing for the rest of this gen.
All sony needs to do is relax, let their engineers take time to actually bring the cost of the machine down as much as possible, then by this time next year do a price drop that would mean they wouldn't be losing any money at their new price. If the PS4 is $300 by this time next year, I would like to see if MS would be able to go (or rather willing to go) as low as $200-$230 with two free games to compete then.
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That's one big, massive advantage they have. The most expensive component on PS4 are the 16 GDDR5 modules (512MB each). Just the start of mass manufacturing of 1GB modules, fuelled by modern GPUs that won't have less than 2GB of memory and things like the GTX970 retailing at mass market price with 4GB of VRAM. The cost of each module will go down naturally and changing them for 1GB modules would drive the price down without much R&D.
And MS? Their most expensive component is their custom made APU. The embedded EDRAM makes it big. A big APU uses more silicon and you do less of them per wafer, using more expensive material. And there's another problem here. Silicon wafers have impurities and each one can cost an entire APU. If you do less per wafer, your loss ratio is bigger. They have to cut price here and that's not easy. They will cut their costs in a way slower fashion.
And there's another thing. Any improvement to the APUs litography will come from GlobalFoundries, that makes both APUs. So, improving the manufacturing of one automatically improves the yelds on the other and both will have a lower cost. The big problem is that Sony achieved a more powerful console that is cheaper to manufacture and will see its costs drop faster.