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Forums - Sales Discussion - PS3 overtaking the (Dead) 360 Anytime soon? Not really...

disolitude on 20 April 2008
TheRealMafoo said:
Price cuts only help if people what the system in the first place. The reason the 360 price cut didn't help much in the UK, is most people who wanted a 360 had one.

This is just my guess, but a huge amount of people what a PS3, but are not willing to pay for it. Once the price drops come, they will buy one.

Sony sold a lot more PS2's under $200 then above it. That's the number they need to hit before these things fly off the shelves. As for who will hit $199 (with a hard drive in it) first, I am going to go with Sony on this one. They are a consumer electronics company, and do this kind of thing very well.

One of MS's OEM manufacturers stop taking orders for the 360 a few months back. The reason is MS wanted them to produce it at a price they could not meet. The 360 is probably selling right at cost right now. There is not much in it that's going to go down anytime soon. The CPU generates a lot of heat, and that cost money to deal with. The DVD is already cheep, the HD is already cheep. Cost reduction for MS right now is a disaster. Sony on the other hand has high prices because they have new technology in there box that cost a lot to make. Over time, these things will get cheaper.

If you had to ask me the #1 reason the PS2 beat the x-box, I would say MS's inability to keep up with price reductions. Right now the PS2 cost $129. If MS was still making the x-box, there is no why in hell they could sell it for that price.

So you are saying that no one wants the system with the best next gen back catalog of games? The consumers you takl about are very price concious and I don't see them not wanting an xbox as they can pick up a lot of excellent games for 10 dollars or less. Most of PS3's good games are quite recent and it will be a while till Uncharted can be bought under 10 dollars...

 As far as cost reduction, you may be right... I'm waiting for the Q1 financial reports to see where companies stand. If microsoft pulls a good profit that means they got room for more price reductions.



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TheRealMafoo on 20 April 2008
disolitude said:

So you are saying that no one wants the system with the best next gen back catalog of games? The consumers you takl about are very price concious and I don't see them not wanting an xbox as they can pick up a lot of excellent games for 10 dollars or less. Most of PS3's good games are quite recent and it will be a while till Uncharted can be bought under 10 dollars...


 I am not a marketing expert, but yes, that's what I am saying. The best system on the market with a back catalog of games, is the PS2, and it's cheep as hell ($129). I don't think people look at that price, and think about the 6000 games they can play on it.

People what what's new. Gears of War is awesome. I am not sure it sell many 360's today. I would think most buyers look towards the future when they buy electronics. Just my opinion though.

I mean a good example, is if right now everything in the gaming world stopped, there is no question the 360 is a better buy. (other then it breaks). It has more great games, and cost less. With all that, the PS3 outsells it by almost 40%, and at a higher cost. I have to assume that's because of what consumers think the future holds for these two systems, and not what they have done in the past. 



EaglesEye379 on 20 April 2008

One thing to keep in mind above all these projections is that Sony is already making a loss for every PS3 sold now and has already slashed nearly a third of its price. This will affect two things: a) Leeway for future price cuts, b) Revenue for future publishing and development.

Now, it is enjoying a hardware boost, but it really should be selling at the Wii levels to justify the price cuts financially and make Sony a profit. The PS3 business is clearly in the red, whilst the 360 business is finally yielding profits. That is why even a $50 price cut at this point will be quite hard for Sony to justify financially on their books. The 360 has had hardly any NA price cuts and is still enjoying a YOY install base growth rate and any further price cuts can push this to greater profits.

What Im saying in the end is that another $50 price cut for PS3 will give very little room for more in the future as they are already making a loss for each sold, and if the hardware boosts are not above current levels, it could even affect Sony's budget for future titles.



SlorgNet on 20 April 2008

Before the 360 can even think of taking on the Beast of BluZilla, a mighty dragon which has a decade of glorious pixel mayhem ahead of it, it would have to outsell the PS2. Let's check the record:

2006: PS2 > 360
2007: PS2 > 360
2008 to date: PS2 > 360

Conclusion: the 360 is being spanked by an eight-year-old technological relic of the dotcom era.



Torillian on 20 April 2008
EaglesEye379 said:
One thing to keep in mind above all these projections is that Sony is already making a loss for every PS3 sold now and has already slashed nearly a third of its price. This will affect two things: a) Leeway for future price cuts, b) Revenue for future publishing and development.

Now, it is enjoying a hardware boost, but it really should be selling at the Wii levels to justify the price cuts financially and make Sony a profit. The PS3 business is clearly in the red, whilst the 360 business is finally yielding profits. That is why even a $50 price cut at this point will be quite hard for Sony to justify financially on their books. The 360 has had hardly any NA price cuts and is still enjoying a YOY install base growth rate and any further price cuts can push this to greater profits.

What Im saying in the end is that another $50 price cut for PS3 will give very little room for more in the future as they are already making a loss for each sold, and if the hardware boosts are not above current levels, it could even affect Sony's budget for future titles.

 PS3 was a loss last quarter that is true, but it wasn't enough to pull the other 2 systems' profits down and put the gaming devision into the red, so I would suggest that there weren't losing that much on each system.  Therefore, stating for a fact that they are still losing money on each PS3 seems foolish because you don't know.  We'll have a better idea on it when we get the new financial information for the last quarter.



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Million on 20 April 2008

EaglesEye379 said:
One thing to keep in mind above all these projections is that Sony is already making a loss for every PS3 sold now and has already slashed nearly a third of its price. This will affect two things: a) Leeway for future price cuts, b) Revenue for future publishing and development


Agreed.

Now, it is enjoying a hardware boost, but it really should be selling at the Wii levels to justify the price cuts financially and make Sony a profit. The PS3 business is clearly in the red, whilst the 360 business is finally yielding profits.

Wrong , Wrong , Wrong Microsoft have never made a penny from any XBOX console.

That is why even a $50 price cut at this point will be quite hard for Sony to justify financially on their books. The 360 has had hardly any NA price cuts and is still enjoying a YOY install base growth rate and any further price cuts can push this to greater profits.

360 had a price cut in Europe bringin it to the same price as the Wii , still selling worse both the PS3 and Wii. the PS3's '08 line alone is enough to negate the effect of the 360 price drop , it's clear consumer interest in the PS3 and Wii is increasing wheras consumer interest in the 360 is stagating.


What Im saying in the end is that another $50 price cut for PS3 will give very little room for more in the future as they are already making a loss for each sold, and if the hardware boosts are not above current levels, it could even affect Sony's budget for future titles.

I don't think Sony would drop it's current PS3 price for the sake of remaining competetive , I don't think it needs to until christmas . Keep in mind Sony is activley tyring to cut the cost's of PS3 hardware so this should help ofset the cost's of a price drop.

 

 


 




starcraft on 20 April 2008
Torillian said:
EaglesEye379 said:
One thing to keep in mind above all these projections is that Sony is already making a loss for every PS3 sold now and has already slashed nearly a third of its price. This will affect two things: a) Leeway for future price cuts, b) Revenue for future publishing and development.

Now, it is enjoying a hardware boost, but it really should be selling at the Wii levels to justify the price cuts financially and make Sony a profit. The PS3 business is clearly in the red, whilst the 360 business is finally yielding profits. That is why even a $50 price cut at this point will be quite hard for Sony to justify financially on their books. The 360 has had hardly any NA price cuts and is still enjoying a YOY install base growth rate and any further price cuts can push this to greater profits.

What Im saying in the end is that another $50 price cut for PS3 will give very little room for more in the future as they are already making a loss for each sold, and if the hardware boosts are not above current levels, it could even affect Sony's budget for future titles.

PS3 was a loss last quarter that is true, but it wasn't enough to pull the other 2 systems' profits down and put the gaming devision into the red, so I would suggest that there weren't losing that much on each system. Therefore, stating for a fact that they are still losing money on each PS3 seems foolish because you don't know. We'll have a better idea on it when we get the new financial information for the last quarter.

PS3 losses must still have been significant last reported quarter.  Think about it, it was the holiday season.  They shifted HUGE numbers of HIGHLY profitable PS2's, PSP and games for all three of their systems, not to mention peripherals.

 



starcraft - Playing Games = FUN, Talking about Games = SERIOUS

Bitmap Frogs on 20 April 2008

It's just fanboy banter. The truth is both are doing quite bad, compared to either the wii or the ps2. Basically, the 360 is surviving off America and the ps3 off Europe.





Current-gen game collection uploaded on the profile, full of win and good games; also most of my PC games. Lucasfilm Games/LucasArts 1982-2008 (Requiescat In Pace).

TheRealMafoo on 20 April 2008
Bitmap Frogs said:
It's just fanboy banter. The truth is both are doing quite bad, compared to either the wii or the ps2. Basically, the 360 is surviving off America and the ps3 off Europe.

If you go by NPD numbers (and no offense to VGA charts, but NPD is more accurate), the PS3 outsells the 360 in the US. So if the 360 is surviving in the US, the PS3 is surviving in Europe, and the US.

Both dead in Japan.



Lone_Canis_Lupus on 20 April 2008
starcraft said:
Torillian said:
EaglesEye379 said:
One thing to keep in mind above all these projections is that Sony is already making a loss for every PS3 sold now and has already slashed nearly a third of its price. This will affect two things: a) Leeway for future price cuts, b) Revenue for future publishing and development.

Now, it is enjoying a hardware boost, but it really should be selling at the Wii levels to justify the price cuts financially and make Sony a profit. The PS3 business is clearly in the red, whilst the 360 business is finally yielding profits. That is why even a $50 price cut at this point will be quite hard for Sony to justify financially on their books. The 360 has had hardly any NA price cuts and is still enjoying a YOY install base growth rate and any further price cuts can push this to greater profits.

What Im saying in the end is that another $50 price cut for PS3 will give very little room for more in the future as they are already making a loss for each sold, and if the hardware boosts are not above current levels, it could even affect Sony's budget for future titles.

PS3 was a loss last quarter that is true, but it wasn't enough to pull the other 2 systems' profits down and put the gaming devision into the red, so I would suggest that there weren't losing that much on each system. Therefore, stating for a fact that they are still losing money on each PS3 seems foolish because you don't know. We'll have a better idea on it when we get the new financial information for the last quarter.

PS3 losses must still have been significant last reported quarter. Think about it, it was the holiday season. They shifted HUGE numbers of HIGHLY profitable PS2's, PSP and games for all three of their systems, not to mention peripherals.

 


 Do you mean shifted as in produced? Or purchased? Because if you mean purchased, that doesn't = PS3 doesn't make profit. They probably are losing money on every console just like Microsoft. But as someone else mentioned, Sony is an electronic company....they are very good at cutting down on production costs. As that same person also mentioned, the 360 has a hot CPU...DVD which pretty much can't get any cheaper, and HDD which also can't get any cheaper. The PS3 has more new technology they can cut the price down on. I remember not too long ago that they were able to make the Blu-ray laser smaller...most likely cutting down on that price. I also remember them including the 45(or was it 65?)nm RSX or something like that in the 40GB.

I probably don't explain it very well, but Sony is spending time actually cutting down on hardware production costs...and MS doesn't seem to be doing a very good job of it.  



PSN: Lone_Canis_Lupus