To add to that, Sony themselves have mentioned (twice I think?) that expanding the PS4's install base is a priority for them. A small amount of profit on the hardware side is nice, but if taking that away results in a dramatic increase in sales (which it likely will), then they're obviously going to choose the long term profit potential of the latter (especially with stuff like Vue and PS+). I'd be very surprised if we don't see a $50 to $100 price cut this year.

I forgot this was the month Bestbuy or whoever it was gave away free PSTV's with PS4's for that week.

Still, pleased to see it doing better than expected. Though, I wonder when VGC are going to start tracking PSTV in the USA/Europe, if at all. It's been like 4 months now and they still don't seem to be bothering.

The PS4 is built much more around the idea of longterm profit instead of short term profit than the PS3 was (which is weird, because the PS3 launched in a way that would help neither short or long term profit ) They made PS+ required for multiplayer, they have started to roll out more subscription services like you say, PS Vue and PS Now, and subscription services are basically built around a short term loss-long term profit mindset.

Basically what I'm wondering is what the hell was Sony thinking with the PS3? It seems like they had no plan on how to make money on it long term, yet they took a gargantuan short term loss on it. Wth Sony?

Oh, did you change your sig? It looks different 😄

If I were head of Playstation I'd drop the PS4 to $299.99 in late summer. Xbone and WiiU would be finished. The people in this thread thinking long term are right on.

From GAF... how PS4 did increased the gap yoy.

DAT PS4 increase.

Yeah.... but you have to take into account that XB1 was $500 at the time vs PS4 $400.

Now it is PS4 $400 with game vs XB1 $350 with game and others.

Wait the graph says it increased the gap yoy? Nvm

Could be right. I wouldn't be surprised if they didn't cut the price. Maybe a bundle and/or a 1TB console for same price. That would mean losing the holiday again to X1 though.

without UC4 in the holiday lineup the question is not will the PS4 get a pricecut, the question is how much, 349 or 299?

I think their end game (harhar) for the PS3 was to push blu-ray as the new standard for visual media, then benefit from their portion of the royalties over the next 10+ years. Blu-ray did manage to become the standard for HD, but the rise of digital and cost of blu-ray movies (relative to DVDs) meant its market share has been much smaller than they were likely hoping for.

They were probably also expecting the PS3 to sell considerably better, which would have increased how quickly they could reduce manufacturing costs. Add in game sale royalties (which they would also have expected to be much higher), and they could have generated a pretty good profit.

I'm not 100% sure about any of this, but it's my best guess as to what they were thinking (based on what I do know). I'd like to think their plan wasn't literally to burn money :p

TL;DR - They dun goof'd Their strategy for the PS4 makes much more sense (much lower risk and potentially higher reward).

And yeah, it is. Same design as the original, but I changed the games ^^

So we got no 360 or ps3 numbers. That's really bad. I hope they still track them. It might explain why Microsoft didn't say the xbox family in their PR.