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Forums - Sales Discussion - Amazon U.S. November 2018 bestsellers and general Amazon-based discussion

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Kerotan on 23 November 2018
PortisheadBiscuit said:
Kerotan said:

Any proof they're definitely talking a loss? I'm sorry but their model this gen has been to generally not sell a loss. They've been offering it for $299 all year. That's probably $100 profit per console. It's years over due a price cut at this stage but Sony kept the price high because demand from consumers was so high. 

I'm not saying they take a loss all the time, but they're not afraid to take losses in the form of promotions especially during holiday seasons. And common sense would tell you if they were taking loss for a standalone model at $199 just a year ago, they're taking one as well at the same price bundled with a $60 game. 

Lol do you know how business works? Bundling spiderman does not count as making a loss. It's published by Sony and the game has already sold enough full price to be profitable. So no, unless you have proof it's costing them over $200 to get the ps4 to stores it's all hearsay. 



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drkohler on 23 November 2018
Kerotan said:

Any proof they're definitely talking a loss? I'm sorry but their model this gen has been to generally not sell a loss. They've been offering it for $299 all year. That's probably $100 profit per console

No, not even close. Mass electronics in that price range has a profit margin the % range. Don't forget that Consoles not only have a manufacturing cost they have a product cost. already at $249, they're likely losing a few bucks all things considered. Just today MS sold the XBox1S (with two controllers, games and 3mo card) for $149 over here. I dread to think what they lost on this one alone.....



Kerotan on 23 November 2018
drkohler said:
Kerotan said:

Any proof they're definitely talking a loss? I'm sorry but their model this gen has been to generally not sell a loss. They've been offering it for $299 all year. That's probably $100 profit per console

No, not even close. Mass electronics in that price range has a profit margin the % range. Don't forget that Consoles not only have a manufacturing cost they have a product cost. already at $249, they're likely losing a few bucks all things considered. Just today MS sold the XBox1S (with two controllers, games and 3mo card) for $149 over here. I dread to think what they lost on this one alone.....

This is a console from 2013 on track to sell 100m+. I very much doubt they are making much of a loss if any on the 199 bundle. 



PortisheadBiscuit on 23 November 2018
Kerotan said:
drkohler said:

No, not even close. Mass electronics in that price range has a profit margin the % range. Don't forget that Consoles not only have a manufacturing cost they have a product cost. already at $249, they're likely losing a few bucks all things considered. Just today MS sold the XBox1S (with two controllers, games and 3mo card) for $149 over here. I dread to think what they lost on this one alone.....

This is a console from 2013 on track to sell 100m+. I very much doubt they are making much of a loss if any on the 199 bundle. 

I could see MAYBE a $199 standalone model at this juncture not being a loss, but bundled with a $60 game, it's a loss. But of course, we know Sony can recoup SOME of it on the backend by getting people into their ecosystem. Though more budget conscious shoppers are less likely spend as much on the platform. 



Kerotan on 23 November 2018
PortisheadBiscuit said:
Kerotan said:

This is a console from 2013 on track to sell 100m+. I very much doubt they are making much of a loss if any on the 199 bundle. 

I could see MAYBE a $199 standalone model at this juncture not being a loss, but bundled with a $60 game, it's a loss. But of course, we know Sony can recoup SOME of it on the backend by getting people into their ecosystem. Though more budget conscious shoppers are less likely spend as much on the platform. 

Sony publish spiderman. It's not costing them anything. 



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PortisheadBiscuit on 23 November 2018
Kerotan said:
PortisheadBiscuit said:

I could see MAYBE a $199 standalone model at this juncture not being a loss, but bundled with a $60 game, it's a loss. But of course, we know Sony can recoup SOME of it on the backend by getting people into their ecosystem. Though more budget conscious shoppers are less likely spend as much on the platform. 

Sony publish spiderman. It's not costing them anything. 

So it cost them nothing to produce and market the game? It's also lost potential revenue they'd garner by selling the game for $60 a piece seperately. So if Sony sells 2 million of these bundles, that's 120m in potential software sales given away for free. 



Kerotan on 23 November 2018
PortisheadBiscuit said:
Kerotan said:

Sony publish spiderman. It's not costing them anything. 

So it cost them nothing to produce and market the game? It's also lost potential revenue they'd garner by selling the game for $60 a piece seperately. So if Sony sells 2 million of these bundles, that's 120m in potential software sales given away for free. 

Potential loss yes, actual loss no. Business 101. 



PortisheadBiscuit on 23 November 2018
Kerotan said:
PortisheadBiscuit said:

So it cost them nothing to produce and market the game? It's also lost potential revenue they'd garner by selling the game for $60 a piece seperately. So if Sony sells 2 million of these bundles, that's 120m in potential software sales given away for free. 

Potential loss yes, actual loss no. Business 101. 

Oversimplification 101



nero on 23 November 2018
PortisheadBiscuit said:
Switch hit #1 but alas out of stock now lol

Loll, just saw that. This month will be amazon amazing



Kerotan on 23 November 2018
PortisheadBiscuit said:
Kerotan said:

Potential loss yes, actual loss no. Business 101. 

Oversimplification 101

Ironic. Considering you said the potential loss per bundle is $60. But the game is on sale for BF everywhere both digital and retail. So how's the potential loss $60? And you never factored in the potential for everyone to buy the season pass. 

 

I think in this case simplifying the business model for you was required.