iNathan said: I think Neo will be sold at a low loss with Ps4 Slim making up for the deficit pricing it at 299 would cover that. Neo is >399e imo. |
That goes against every other business model for electronics. You always charge a premium for the premium model, and break even or make a minimal profit on the lowest end device. This gives the lowest possible entry price, and lets you make money on the people willing to pay big money for the best.
JRPGfan said:
Intrinsic said:
Thats definately one way to do it. And makes a lot of sense. to bring the cost of Neo as low as possible for the consumer. They charge $299 for the PS4s
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They need to make waves.
a 50$ price reduction down to 299$ isnt gonna do that.
a 100$ price reduction down to 249$ (from 349$) will make waves.
Its about selling a sh*t metric ton of them, and then makeing it up via software and services.
Not going to 249$ if its possible could be a mistake, imo.
This needs to be cheaper than the 299$ Xbox One slim.
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Absoluty spot on. Sony needs to launch the PS4 2000 at $249.99, and then offer a $199.99 special through December. They own the market this holiday with PS4 2000 + PS4 Neo + PSVR vs XBOS, and they need to build as strong as a userbase as possible while Nintendo and MS are prepping for their next moves. Next year is going to be a battle from March through the end of the year.
TallSilhouette said:
Don't forget retailers still need to make some profit on these too, especially with disc sales in constant decline. A console that costs $422 to manufacture (then ship) would probably need to retail at $500 for both parties to profit from it directly. And that's fine by me. New 'premium' consoles launching at $500-450 and dropping roughly $50 a year to where they're $300-350 when they become the baseline and $150-200 when they're on their way out sounds like the sweet spot to me. Very curious if the slim could actually launch at $250. Really wasn't expecting that, but if they can pull it off this thing will fly off the shelves (and may actually put a damper in Neo sales).
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You nailed it on the head with retail. In a world where Intrinsic is right on with his component costs at $200 & $422, then you are looking at $220/$470 bulk, and $250/$500 to consumer. Retailer is going to pick up $30 on every unit sold, and Sony gets $20/$48 respectivly. This would give them a small profit on the 2000 and a little larger margin on the Neo, right in line with normal business practices.
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