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

Stan85, every company is interested in profit. Without it, they'd go out of business.



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Dodece said:
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?

Wot?



ps3 sales right now are pretty good, so a price cut just isnt worth it right now.
besides, they will cut the price next year so people tight on money can just wait a little more.



 

 

 

 

Words Of Wisdom said:
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.


Furthering the interests of its consumers? Now that is a phrase I have never heard, and frankly I don't think the interests of the consumers matter. The shareholders are the owners of a company. How often do you hear of a major corporation sacrificing its profit because it’s in the best interest of their customers?.

 

A company’s sole existence is to be profitable and to further the interests of its shareholders that have money invested in the company.

 

 




Dodece said:
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?

Don't know where you get this idea.

Nintendo has never adopted anyones format for discs or cartridges. They have always used their own proprietary format. Also, they try to keep their systems cheap, so Blu-Ray is out of the question til standalone blu-ray players are in the $75-100 range.

Microsoft launched their system before blu-ray was even remotely viable. If they had adopted it, they probably would have had to charge $1k for their system, which would have been suicide. Now if they adopt it, they fracture their already small user base, as the 20m users with the old x360 wouldn't be able to play new blu-ray games.

don't be suprised if next generation Nintendo adopts blue laser disc technology, but they invent their own format. So you can expect 30-50gb discs, but not in a standard format.




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ymeaga1n said:
Words Of Wisdom said:
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.


Furthering the interests of its consumers? Now that is a phrase I have never heard, and frankly I don't think the interests of the consumers matter. The shareholders are the owners of a company. How often do you hear of a major corporation sacrificing its profit because it’s in the best interest of their customers?.

 

A company’s sole existence is to be profitable and to further the interests of its shareholders that have money invested in the company.

A company is heavily defined by the interests of the consumers. 

If consumers demand 50" TVs instead of 40" TVs, sales on 40" TVs will go down and the company will sell fewer of them.  If a company fails to cater to its consumers demands beyond an acceptible level, they turn to alternatives and the company goes out of business.

You seem to think that a company needs to sacrifice profit to meet consumer demands when in reality, meeting those consumer demands at an acceptible level is the key to profiting and survival.  Of course, something to keep in mind is that what we as individuals feel is acceptible and what the market as a whole sees as acceptible are often somewhat different.



Stan, could you provide me with a list of companies that are not interested in making a profit. Even it that list has one name on it, I'll be surprised.



"This is the deep-dish, delicious irony endured by the Nintendo stalwart: to see their platform of choice ascendant, even as their bright God turns his face away."

Tycho Brahe

Dodece said:
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?
I hope that's not in response to what I'd said.  If so, you misconstrued what I was saying.   I'm not suggesting Sony is on the verge of bailing out of videogames.   I'm saying you cannot expect Sony to continually shallow losses forever on the PS3 for the sake of pricecuts because as some point shareholders would stop seeing any value in it and want the bleeding sore gone.    The fact that Sony seems to have taken a hardline on reducing price anymore goes to show that shareholders no longer care about winning this gen, they are more concerned with return on investment (as they should be) and so Sony will only drop the price now when it becomes able to do so while still making profit.   No one should blame Sony either.  MS has done the same with tiny $50 cuts and Nintendo certainly would never ever cut prices to the point where they were losing money.  Heck they havn't dropped the Wii's price at all.  But why should they?

 

Tailgunner said:
Stan, could you provide me with a list of companies that are not interested in making a profit. Even it that list has one name on it, I'll be surprised.

 

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