Max King of the Wild said: Millenium - Sonys President said they were losing 10% on the each ps3 sold. they sell each ps3 sold for less than 400 dollars. 10% of that is 40. And I was saying that shrinking the ps3 would save them money on shipping because they would be able to fit more boxes of ps3s on a crate ontop of that im sure sony is hoping for the exchange rates to return to normal. In 06 and 07 the yen was about 120. In 08 it was about 107 until Q4 which then fell to low 90s. Now its high 90s. If it just gains 10 more it would be like a price hike of 40 dollars in the US. ontop of that all sony will only make money if people buy their product and there is such a thing as price saturation. how much longer than 2 years without price drop can you go? |
Sony will only make money if people buy their product and the product makes money. They won't make anything if they can't sell the PS3 for a profit; they got lucky with their predatory "console as a loss leader" move for two generations, but their luck ran out with the PS3. They need to make a profit on every unit sold, however small, if they want to get out of this hole, and they know this.
There is such a thing as price saturation, but the PS3 has not reached that point. It continues to sell, even if it's in second or third place depending on the region. Surviving at second or third is better than a first-place finish that bankrupts the company, and Sony knows this. Its problem is arrogance, not stupidity. People keep wondering why there hasn't been a price drop (it's been a lot less than two years since the last one, by the way), but there is a situation in which it makes sense not to drop the pric. When you're not making money per unit, it takes a very long time to recover the losses that result from dropping the price even further, and time is not a luxury Sony can afford in its current financial situation. It needs short-term gains, and it needs them immediately, and that means cutting costs without cutting the price.
Besides, as I point out, keeping the price the same across a hardware refresh will not cause demand to nose-dive. It hasn't done so in the past, and it won't do so this time. Releasing the Slim at the same price point as the current PS3 is very safe and relatively profitable, and so that is what Sony is going to do. Is it the best possible move for the PS3 platform? No, but Sony's unique situation means that it has other things to worry about that must take priority, and Sony understands this.
Complexity is not depth. Machismo is not maturity. Obsession is not dedication. Tedium is not challenge. Support gaming: support the Wii.
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What do I hate about modern gaming? I hate tedium replacing challenge, complexity replacing depth, and domination replacing entertainment. I hate the outsourcing of mechanics to physics textbooks, art direction to photocopiers, and story to cheap Hollywood screenwriters. I hate the confusion of obsession with dedication, style with substance, new with gimmicky, old with obsolete, new with evolutionary, and old with time-tested.
There is much to hate about modern gaming. That is why I support the Wii.