mysticD said:
blackstar said:
HELP me understand this, HELP me understand MS
the crazy price-cut in all three regions: imagine the amount of money they are going to lose on HW on all three models
the crazy RRoD: the problem is unfixable and anyone says "NO, THEY ARE FIXING IT" wake up! they have been in the market for more than 2 years and a half and it's still exist and they are losing MONEY because of RRoD
the crazy amount of 3ed part exclusive games : they have lots of that , companies are not doing this for free they are getting paid for that which also means HUGE AMOUNT OF MONEY
help me understand when they are going to be proftible when the new xbox is out on 2011??
what's the point of cutting prices and loses HUGE amount of money when u are sellling well and 5 million away from ur main competitor?
discuss -if u want :)-
|
You can substitute your theory with PS3 and then try to come to a conclusion.
Sony is loosing money on every PS3 right now. Good blu-ray player cost around $300.00 (cheapest one is about $200) there is no way that PS3 cost is $99 even without the blu-ray unit.
They already said they probably won't recoup all the developement cost of PS3 (read blu-ray & cell). (Just like MS lost billion on their RRod Debacle)
While MS pump a lot of money in to catering 3rd Party Dev, Sony is spending million on their in-house developement. Home, KZ2 etc.
Discuss if you want.
|
you cannot calculate ps3 production cost from a standalone blu-ray, that also needs a lot of other expensive chips for the decoding, in ps3 teh cell takes over decoding so you should actually look at costs for bd rom computer drives to see how much the blu-ray costs sony, and here in europe they are at ~70€ atm (since sony is producing these drives themself it will be even cheaper for them to integrate it).
yes the cell is more expensice than the cpu of the xbox, but overall cost for ps3 decreased noticabley over the last year and the last calcualtions of analysts i have seen in janary already resulted in a production cost of roughly $400. 400$ production cost still results in a noticable loss when selling at 400, since they have costs for packaging shipping, marketing... But now with the new hardware revision and shrinked rsx as well as the blu ray drives constantly getting cheaper to produce they might allready be slightly profitable at $400.
a pricedrop now would be bad for sony as they are right now on track to get profitable with hardware too, so i guess sony will wait first how much ms gains with their drops. also waiting 1-2 months will increase chances for teh 45nm cell chips to be available to them which should reduce cost quite a bit (the cell probably is still one of the most expensive components in the ps3, and a shrink usually drops production costs for a chip by 30-50%).
Xbox pricedrop also has a lot strategy in it, they know that sony was gaining a lot momentum and additionally lowering costs constantly so the preasure on sony was dropping more and more. Right now its too early for sony to drop the price so with dropping price now ms hopes to put sony again under pressure and maybe let sony loose some sales momentum. If MS strategy works out sony will have the choice of dropping price and loosing more money, or loosing out on a lot sales this christmas.
but atm its still undecided if that strategy works out. the price cut will definitely give a spike that was allways expected but the spike alone will not hurt sony, but it will hurt sonyif there will be a longer lasting effect especially if it lowers ps3 sales (if its only a 10-20k boost to xbox sales after the spike then sony can maybe live with it, but if they also loose own sales then they will have to act).