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Forums - Sony - A Playstation 3 Pricecut Could Cripple Sony So Stop Begging For It!

JamesCizuz on 18 April 2009
NeoRatt said:
Sony is crippled right now financially and I don't expect one before fall. But there will be a price cut in September or October...

Sony cannot afford to lose another year to 360 in sales wise worldwide. If they do, they are done for this generation.

 

First year PS3 outsold 360, and was outselling it by a large margin in year 2.(Well it outsold it in it's actual year 2, since the year ends in november for official second year over on PS3, but if you include up to december 31 then 360 outsold it by like 400k I think due to massive price cuts.)



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leo-j on 18 April 2009

Lets just assume sony is loosing money on the PSN , PSP,  PS2,  software, and the 160gb ps3, because we have to assume this.



 

mM
Zlejedi on 18 April 2009

Hmm It's heart touching how many people care about Sony well being but for god's sake they have teams of experienced educated managers and access to full information including production costs so I'd say they should be able to decide if they can afford price cut or not better than zylions of keybord happy bloggers and forums posters.



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Cheebee on 18 April 2009

Well everyone with half a brain should realise this, really. It's what myself and quite a few others here have been saying for ages. Cutting PS3's price now is only gonna cost Sony tons of money.



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JRPG on 18 April 2009
Dgc1808 said:
JRPG said:
Dgc1808 said:
JRPG said:
blackstar said:
i know it's impossible :*(

 

Because Sony can't take that much loss of revenue. Even if they do cut the prices nothing will change. They will sale the same amount they are doing now(maybe a month spike but nothing major), and they will still be in last place and losing more money.

 

I guess you don't remember the price cut to 400 and 500....

Or the 360 cut for 200 and 300....

 

That was before the economy was this bad, and Sony had more money. Also the tech prices were going down a bit.

 

We're talking about LOWERING the price here...
PS3 sales will go up and 360 sales will go down.... just like the past 2 cut I just mentioned...

Anyway... this cut's not gonna happen.

Yes the PS3 sales will go up, i'm not arguing that. I'm saying the hit might be too much for sony in the long run.

 



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Alby_da_Wolf on 18 April 2009

iSuppli estimate the article most probably cites was released in December, but it was about October 2008 costs.
That said, a cut now, in a quite dead period, making it just a little less dead, wouldn't make much sense.
But if Sony wants to cut next Autumn, there should be no problem, it will be one year later than that costs estimate, so costs will be much lower by then, and in case $ will still be weak, what Sony will lose in USA, it will more than recover in further components cost savings, thanks to weak $, and strong € sales.



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Dgc1808 on 18 April 2009
JRPG said:
Dgc1808 said:
JRPG said:
Dgc1808 said:
JRPG said:
blackstar said:
i know it's impossible :*(

 

Because Sony can't take that much loss of revenue. Even if they do cut the prices nothing will change. They will sale the same amount they are doing now(maybe a month spike but nothing major), and they will still be in last place and losing more money.

 

I guess you don't remember the price cut to 400 and 500....

Or the 360 cut for 200 and 300....

 

That was before the economy was this bad, and Sony had more money. Also the tech prices were going down a bit.

 

We're talking about LOWERING the price here...
PS3 sales will go up and 360 sales will go down.... just like the past 2 cut I just mentioned...

Anyway... this cut's not gonna happen.

Yes the PS3 sales will go up, i'm not arguing that. I'm saying the hit might be too much for sony in the long run.

 

 

Here's where we both agree on something.



4 ≈ One

Noobie on 18 April 2009
JamesCizuz said:
This guy is an idiot. People like to shout how Sony is "losing money" Sony knew they were going to lose at least 3 billion, upwards to 5 or 7 billion from PS3.

PS3, 60 GB cost NINE HUNDRED, 63 DOLLARS to produce. They sold it for 600$. The 20 gig cost 780$ to produce, and sold for 500$. Within first 4 months moanufacturing price came down to 800 and 700 respectively. In the first 16 weeks, PS3 sold 2 million consoles. Respectively at a 250$ to 350$ loss, so a 300$ average lose. Which is a net loss of 600 million. Again manufacturing prices never went down again till 6 months later to 750 and 650. PS3 sold another 2.5 million in that time frame. At a lose of 250$, another net loss of 750 million. A total loss of 1.35 billion dollars, and it's only on sale for 8 months.(This is a pure guess, manufacturing prices don't go down at once they go down over time, real estimates are between the mean of 1 billion to 1.4 billion loss at this time).

At the end of the first year, PS3 sold 9 million units, ALL SELLING at a loss. Even when 80 gig launched it still cost 650$ to produce. Sold for 500$. Even 60 gig was dropped everywhere to 500$.

Even microsoft sold 360 at a loss when it first came out.

It's sad people don't actually understand console companies, even now Sony is not making a profit on the 40(80 gig now) model, it is however making money on the 80(160 gig) model now. About 10$ per console.

They lost nearly, in 2 years around 3.5 billion to 4 billion dollars. This was not a mistake or due to economy, they new this was going to happen, first 2 years PS2 lost nearly 3 billion for sony, because they sold at a loss.

Right now Sony doesn't want to lose more then 4 billion though, that would be a new record for them, thus they don't want to drop price, but don't dare say it'll cripple them, it won't.

Do you have any source of the real estimates.?

 



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Kantor on 18 April 2009

Well, the only fault I could find in that was that America =/= world, but it's a hell of a lot better than that downward spiral article.

I give it 8.4/10.



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City17 on 18 April 2009
Kantor said:
Well, the only fault I could find in that was that America =/= world, but it's a hell of a lot better than that downward spiral article.

I give it 8.4/10.

 

LOL!   User reviews FTW!