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Forums - Sony - Sony PS3 Price Cut Around The Corner (SNE)

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"All you need in life is ignorance and confidence; then success is sure." - Mark Twain

"..." - Gordon Freeman

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I don't think Sony can afford another price cut. Each PS3 sold they lose $40. If they drop $50 they will lose $90. Let say they sold 500k PS3 this month with $40 loss for each console. Total Sony lose about $20 million. After $50 price cut PS3 sales might increase to 800k with $90 loss each. Total loss $72 million. Taht 3.5x more loss. The only way they can cut the price is when PS3 production cost below sales price or PS2 and PSP sales increase dramatically. Software sales cannot cover all the lose.



NSS7 said:
I don't think Sony can afford another price cut. Each PS3 sold they lose $40. If they drop $50 they will lose $90. Let say they sold 500k PS3 this month with $40 loss for each console. Total Sony lose about $20 million. After $50 price cut PS3 sales might increase to 800k with $90 loss each. Total loss $72 million. Taht 3.5x more loss. The only way they can cut the price is when PS3 production cost below sales price or PS2 and PSP sales increase dramatically. Software sales cannot cover all the lose.

 

 

I think the general concenses is that Sony would cut the price at the same time as the intro of the slim PS3 with 45nm cell, thus in effect keeping the same unit loss as they currently have. The question is, which course of action is more profitable, in the long run. Personally, I think WereKitten has it licked. Although this years losses will increase as a result, the long term increase in software and accessory sales will generate more profit/less loss, in the long run. It'll also keep 3rd party publishers happy, which is also critical for their continued support of the PS3 platform.

Yes, Sony is hurting, but for the umpteenth time, this is the first yearly loss in 14 years for Sony, they aren't about to go bankrupt tomorrow. Yes, they have a lot of long term debt, but they've also got assets worth many times that. AMD is a very good example of a company that has sustained several years of unprofitability and not gone under, mainly through investments from other companies/rich Middle-Eastern oil barons. Sony is nowhere near that level, the sale of shares to raise capital is nothing new in an environment where credit is expensive. Its not a sign of Sony's imminent demise, as so many fanbois feverishly think/hope it is. Including ones with apparent business degrees.



I knew this all along, and now with 13 million PS3s forecast for this Fiscal year a price cut is guaranteed. Only a fool would think otherswise. In such serious economic times as these, Sony wouldnt talk about a 30% shipment increase to investors if they werent serious.

The question is just if it's $349 or $299. I admit I was a firm believer in a $299 PS3 until a couple of months ago when I realized that PS2 went from $199 to $179 (back in 2003 - exactly 6 years ago, thus corresponding to 2009 in this gen), suggesting Sony doesn't do these kind of drastical price drops at this point in time of a generation, as a $100 drop would be.

I perdict $349 announced at E3.

A PS3 Slim at this point in time is just bogus. IMO the PS3 hardware is too bulky for them to fit it into a slim case at this early in the gen. But in 2010, maybe.



Slimebeast said:

I knew this all along, and now with 13 million PS3s forecast for this Fiscal year a price cut is guaranteed. Only a fool would think otherswise. In such serious economic times as these, Sony wouldnt talk about a 30% shipment increase to investors if they werent serious.

The question is just if it's $349 or $299. I admit I was a firm believer in a $299 PS3 until a couple of months ago when I realized that PS2 went from $199 to $179 (back in 2003 - exactly 6 years ago, thus corresponding to 2009 in this gen), suggesting Sony doesn't do these kind of drastical price drops at this point in time of a generation, as a $100 drop would be.

I perdict $349 announced at E3.

A PS3 Slim at this point in time is just bogus. IMO the PS3 hardware is too bulky for them to fit it into a slim case at this early in the gen. But in 2010, maybe.

Make sense, but 50 cut would do little.

Though with FF13 and especially GT5 releasing those sales are possible with out a cut, only Sony knows when all the games are really coming out. 

Also who says slim must be as big a slim down as PS2 to PS2slim was ?  Cut size by 1/4th would be a big deal.  Ps3 could recieve 2 slim downs in its life.

 



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@NJ5 I totally agree with you, and nice.