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

Forums - Gaming - Theory on why Sony couldn't drop price on the PS4 last holiday

nanarchy on 28 January 2015
platformmaster918 said:
WiiStation360 said:
XBox One needs to sell for less than the PS4 to be competitive. Sony knows this. Microsoft knows this too.

If Sony dropped the price to $350, MS would just drop to $300. Sony would sell the same amount, just make less money.

at a certain point the Xbox division (not MS as a whole obviously) just can't keep dropping through.  They need to make money just like Playstation division does.
And if it were always as simple as making up for it later then they wouldn't have started at $400 anyway.

It is always easier to start at a higher price and drop when  needed as the reaction to a price rise if you needed is always extremely negative. Sony had a great year, I doubt they could have produced enough consoles to fullfil the demand had they dropped the price, if they had the consoles though I think you would have seen some additional temporary sales through the holiday's as while they can't afford a price war with MS they certainly would have liked a larger slice of the xmas pie in places like the US.



Around the Network
Captain_Tom on 28 January 2015
SWORDF1SH said:
Captain_Tom said:
How about the fact of them not needing to? $50*3,000,000 = $150,000,000. They don't need to outsell the X1 3:1 to make a shit ton of money. They will be happy with 2:1 + lots o' profit lol.


I see people saying that they didn't need to. But they don't want to lose ground and momentum. They lost a lot of sales by not dropping the price. I'm sure we would of seen a holiday pricecut if they had more stock. Lets not forget the big deals the 360 had in the US every holiday even though it beat the PS3 week in week out. Why? because it pushed software and subs.

Don't think so short sighted.  Sony allowed MS to have a pyrric victory.  Sure they sold more than otherwise, but they only won one region and still lost worldwide.  This cost them millions in revenue to do.

Meanwhile Sony is sitting pretty about to open up the floodgates of exclusives...



Captain_Tom on 28 January 2015
nanarchy said:
platformmaster918 said:
WiiStation360 said:
XBox One needs to sell for less than the PS4 to be competitive. Sony knows this. Microsoft knows this too.

If Sony dropped the price to $350, MS would just drop to $300. Sony would sell the same amount, just make less money.

at a certain point the Xbox division (not MS as a whole obviously) just can't keep dropping through.  They need to make money just like Playstation division does.
And if it were always as simple as making up for it later then they wouldn't have started at $400 anyway.

It is always easier to start at a higher price and drop when  needed as the reaction to a price rise if you needed is always extremely negative. Sony had a great year, I doubt they could have produced enough consoles to fullfil the demand had they dropped the price, if they had the consoles though I think you would have seen some additional temporary sales through the holiday's as while they can't afford a price war with MS they certainly would have liked a larger slice of the xmas pie in places like the US.


That's the other thing, at $350 the PS4's would have completely sold out.  They are selling every console that arrives on shelves anyways within a timely manner.



SWORDF1SH on 28 January 2015
TheGoldenBoy said:

XBO has no big exclusives releasing before E3 that I know of and games like The Order, Bloodborne and Final Fantasy Type-0 HD will all boost the PS4. Also about Nov+Dec, that's why I said possibly. I expect that next holiday season they'll definitely try harder in the US. I don't know if they'll try to match the XBO in price, but I can definitely see them bundling multiple first party games to add value.

Why would they try harder this year. They will more than likely be in exactly the same position going into next holiday as they were last holiday.



Mikmster on 28 January 2015
nanarchy said:

It is always easier to start at a higher price and drop when  needed as the reaction to a price rise if you needed is always extremely negative. Sony had a great year, I doubt they could have produced enough consoles to fullfil the demand had they dropped the price, if they had the consoles though I think you would have seen some additional temporary sales through the holiday's as while they can't afford a price war with MS they certainly would have liked a larger slice of the xmas pie in places like the US.


Neither can MS afford a price war with a much much more popular in demand product.  At a point they would force a price for PS4 that skyrockets its sales whiel X1 would still be struggling even being cheaper.  ex a 299 PS4 will kill the X1 no matter if its 250 200. 



Around the Network
TheGoldenBoy on 28 January 2015
SWORDF1SH said:
TheGoldenBoy said:

XBO has no big exclusives releasing before E3 that I know of and games like The Order, Bloodborne and Final Fantasy Type-0 HD will all boost the PS4. Also about Nov+Dec, that's why I said possibly. I expect that next holiday season they'll definitely try harder in the US. I don't know if they'll try to match the XBO in price, but I can definitely see them bundling multiple first party games to add value.

Why would they try harder this year. They will more than likely be in exactly the same position going into next holiday as they were last holiday.

Because they saw what happened last holiday season.



Chaosutopia on 28 January 2015

The reason why the PS4 Dominates the EU is very easy, deals like this have been constantly around since August 2014

http://www.amazon.de/PlayStation-Remastered-DualShock-Wireless-Controller/dp/B00OMS8HOW/ref=sr_1_6?ie=UTF8&qid=1422485170&sr=8-6&keywords=ps4+amazon

Since May 2014 the PS4 has been well stocked at least in Germany and similar bundles can be found at retailers or onlineshops alike. The japaneses home console market is pretty irrelevant at the moment, so if Sony continuously sells twice as much PS4s in Europe as XBox Ones, losing in the american market by a small margin is more than acceptable, as the have the upper hand at the moment and are even expanding their lead globally.



SWORDF1SH on 28 January 2015
Mikmster said:
SWORDF1SH said:


I believe it was in the US. They lost a lot of ground and gave the X1 good momentum going into this year.


Yahh no, X1 has no momantum just look at amazon.  It was a fire sale, no point in countering that.  Especially since it proved ineffective vs the PS4 long term.  MS hurt them selves as much as they gained, sony saw that and sat back and did nothing.  


It could very well be true. It definitely makes sense to not jump when MS jumps but it also makes sense to have good deals in the holidy to push your product. PS4 had decent sales in the US but nothing special. They should of had something planned regardless what Ms were doing. To me that points to lack of units. They controlled exactly what they wanted to sell.



Uabit on 28 January 2015

I entered the thread thinking it was going to be some "because of the debt" one. I'm glad it isn't because i was going to laugh at the threat.



Cloudman on 28 January 2015

I figure since the PS4 was selling so well, it was in no need to drop the price. If it continues to sell really well, why drop it?



 

              

Dance my pretties!

The Official Art Thread      -      The Official Manga Thread      -      The Official Starbound Thread