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Forums - Sony - Sony cant cut the price

yeah i agree with this, we won't see a price cut anytime soon. I'd even say 2009 is too early.

I don't give a crap about a price drop, i already own a PS3. I'm more interested in a release date for Gran Turismo 5.



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leo-j said:

Here is why:

You see, if the ps3 is cut to $299, sony will start loosing $100 more per console. This isnt a good thing because the company has already lost up to 4 billion on the ps3 alone.

Now your asking "But psn users/ps store/psp/ps2/software sales" etc..

It wont matter, If the ps3 drops to $299, DEMAND will increase, and when that happens sony will have to make more ps3's at a loss, meaning they might start loosing even more money than they where when it was at $599.

So just to answer the question "why doesnt sony cut the price" well there you go.

i don't think sony will get to 299$ with the 80g sku maybe 350$ in the fall i think a 299$ ps3 will come next year in another sku

20g no wi fi cheaper internals with this model the losses will be similar to wat the 80g is now

it's obvious 360 is getting most of it's sales with the arcade sony will follow

 



                                                             

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Guys, that "Sony loses $50 per console" guess was from iSupply... which has been known for really bad predictions in the past.

I would not be surprised if Sony made $10-20 per 80GB console right now, but you know... take that with a grain of salt. Trust in iSupply. They are much more reliable. Lol. ;)



Groucho said:
Guys, that "Sony loses $50 per console" guess was from iSupply... which has been known for really bad predictions in the past.

I would not be surprised if Sony made $10-20 per 80GB console right now, but you know... take that with a grain of salt. Trust in iSupply. They are much more reliable. Lol. ;)

agreed i remember wen there was an article bout the 40g ps3 breaking even  earlier this year they must of did something to the internals besides add a 80g hdd to the 80g model in all that time 

 

does the current 80g + 160g have the fan test?

 



                                                             

                                                                      Play Me

Groucho said:
Guys, that "Sony loses $50 per console" guess was from iSupply... which has been known for really bad predictions in the past.

I would not be surprised if Sony made $10-20 per 80GB console right now, but you know... take that with a grain of salt. Trust in iSupply. They are much more reliable. Lol. ;)

 

Well be prepared to be surprised, Sony Europe have admitted that they are still losing money on PS3 hardware and Europe are selling the PS3 for the highest price anywhere in the world.



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Infamy79 said:
Groucho said:
Guys, that "Sony loses $50 per console" guess was from iSupply... which has been known for really bad predictions in the past.

I would not be surprised if Sony made $10-20 per 80GB console right now, but you know... take that with a grain of salt. Trust in iSupply. They are much more reliable. Lol. ;)

 

Well be prepared to be surprised, Sony Europe have admitted that they are still losing money on PS3 hardware and Europe are selling the PS3 for the highest price anywhere in the world.

Lol.  Link from sometime in recent history?

 



Did anyone here not learn the concept of economies of scale? If Sony starts producing more PS3's, the cost per each console will go down.



whatever said:
Did anyone here not learn the concept of economies of scale? If Sony starts producing more PS3's, the cost per each console will go down.

Probably not to a great extent. Certainly not enough to make them profitable with a $100 price cut currently.

 



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whatever said:
Did anyone here not learn the concept of economies of scale? If Sony starts producing more PS3's, the cost per each console will go down.

What you're suggesting is, essentially, bulk discounting, and this is not a continuous thing: there are discrete points where the cost per console goes down. Furthermore, to get such a benefit,Sony would have to make more consoles then they currently do, and at the current rates the PS3 fails to sell out except during the holiday season. Even with a $100 price cut, Sony would lose $300 on every console that doesn't get sold, and no economy of scale can nullify that. The PS3's failure to thrive at its current price point makes the risks here very real, and it is unfair to blame Sony for fearing that.

Second, economies of scale do not work instantaneously. It takes time to derive any benefit from them. Until that happens, Sony would be losing money, even on machines that do get sold, as for their current manufacturing rates. Is Sony truly in a position to survive those losses for long enough that the benefit has time to kick in? I don't think so, and Sony appears to agree with me.



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