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Forums - Gaming Discussion - Sony on PS3 price: We've a business to run

SmokedHostage said:
Shareholders > Consumers...

Sounds familar

Wow, what a pathetic post.

Start a business giving away free food all day long and see how long it lasts.

Sony is focusing on paying the bills and cutting losses which is exactly what they need to do if they want to convince those shareholders to invest in another Playstation game console.



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expected



The first problem with this statement is that it is unreliable. Remember Sony has no compunction about lying to the public about their consoles MSRP. They have done it before, and they will do so again. Unfortunately they are never held to account for the lying. The fans never give them the finger for the shenanigans, and the gaming media just overlooks the whole affair. Even after they were used to spread the lie. The comments are coming from a highly unreliable source.

That said I am perplexed as to what Sony would or should do. There are obviously financial incentives to maintain the price. However there is also a logic that says use the console as a spear head through lean financial times. A few weeks ago I thought the console was a perfect tool to protect market penetration for their technologies. However it is looking like Sony is barely going to break even in this economic climate, and that means Sony can probably no longer compete on this front.

Sony is just not getting any breaks this generation. The loss leading strategy backfired on them, and now due to the dire economic situation they are probably left with only a defensive posture. With little to no ability for aggression. That is a terrible position. Not only are they losing the pricing war, but the tight purse strings probably mean they will lose the advertising war, exclusives war, and overall the console war.

These comments have sitting duck written all over them.



Everyone who owns a PS3 will say, "Well done Sony".

Everyone who is thinking about buying a PS3 will say "Sony you must cut the price to stay competetive".

Everyone who doesn't care won't say anything but silently think the PS3 is too expensive for what it gives you - relative to the competition.

But we're all different. Nice of Sony to remind us they are a buisness, for a minute there I completely forgot!



Words Of Wisdom said:
SmokedHostage said:
Shareholders > Consumers...

Sounds familar

Wow, what a pathetic post.

Start a business giving away free food all day long and see how long it lasts.

Sony is focusing on paying the bills and cutting losses which is exactly what they need to do if they want to convince those shareholders to invest in another Playstation game console.

I don't get why you're critcizing your quoted post, he's saying the same thing you are in 5 words.

 




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I think the reality is PS3 has already lost all the money Sony has ever made from being in the gaming business. Shareholders will simply not tolerate more losses. At some point, it would become preferable to cut the PS business altogether rather than incur continued losses.

Sony has come to the point where if the finish 3rd, they finish 3rd but at least they want to try to make some profit or at least stop the bleeding on the way.



 

After losing 370 mil $ last quarter in the SCE division, it had to be expected.



How many cups of darkness have I drank over the years? Even I don't know...

 

ymeaga1n said:
Words Of Wisdom said:
SmokedHostage said:
Shareholders > Consumers...

Sounds familar

Wow, what a pathetic post.

Start a business giving away free food all day long and see how long it lasts.

Sony is focusing on paying the bills and cutting losses which is exactly what they need to do if they want to convince those shareholders to invest in another Playstation game console.

I don't get why you're critcizing your quoted post, he's saying the same thing you are in 5 words.

I'm saying that it's not as simple as that.  You can't say that Sony isn't furthering the interests of its consumers by staying in business.  It's not one or the other, if you can't do the former than you can do neither.



So no price cut this Cristmass,you have to pay full price. Sad...the competition is offering the same experience at half the price. Sad for Sony that is...but that`s what happens when a company is interested about profit.



Are we seriously looking at the specter of a true division collapse. Could Sony actually find itself in the next few months looking to sell off its gaming division? Imagine the holy hell that would ensue were Nintendo or Microsoft to buy Sony gaming on the cheap.

Ironically it might be the way to go to increase BluRay penetration which is what Sony really wanted in the first place. Selling off their console effectively killing it they wouldn't be competing quite so directly with Microsoft of Nintendo. Both of which would have greater reason to adopt the drive as a standard. Which they will not do now due to competitive reasons.

We thought last years holiday season was critical. Could this season be even more critical?