but they need to hit the point of selling millions of them as well a smaller profit margin multiplied by more sales can be more than a higher profit margin and lower sales.
| Wonktonodi said: but they need to hit the point of selling millions of them as well a smaller profit margin multiplied by more sales can be more than a higher profit margin and lower sales. |
Yes, but they can achieve this through price cuts.
I think Sony have calculated the price very nicely for themselves
Wonk - thats the wonderful thing about Christmas money all round!
it's over $100 more than a DSlite I think it's a bit much, but we will see what consumers say.
| Leonidus said: You know the people who desire the latest gear and are willing to pay launch price. |
Very true. Look at the 86,000+ people who bought a $500/$600 PS3 during launch week. I bet 50,000 of those people would have spent $700 or more just to have it.
coolestguyever said:
|
Yep, technology is like a fashion to many people. They just have to keep up
coolbeans said:
That depends all on the consumer though if they'll make a profit from this to begin with, it'll seems especially hard when 2 consoles are cheaper or at the same price as that and the older model is nearly $100 cheaper as well. |
You are comparing this to a completly different market.
^If Sony sells 5 of these things they should make a profit lol
Well I was arguing a similar point in the last thread . Sony definetley won't make a profit off the Go with five units sold lol , they'll still have some R&D costs (not nearly as large as the original PSP) and some marketing and promotion costs but the break even point for the PSP Go will be very low.
The PSP Go is really a win win siutation for Sony , it's opening sales will probably be enough to cover all the direct costs of the PSP Go and from then on it'll be pure profit. If the PSP Go flops after it's opening then Sony will have failed to attain marketshare but they won't have lost any money in doing so , free market research for Sony , free promotion for the playstation brand and the original PSP series will continue to push units.
With Sony's current financial trouble I seriously doubt they'd allow any loss making to be involved in the release of the PSP Go.
It's a pretty safe bet that the systems gonna be selling at a pretty decent profit margin, and there's still the PSP3000 which also sells at a profit. I see it as a good move if the Go can get decent sales, if not then it's a waste of R&D funds... but hey, if the profit margin is as good as we think it is, wouldn't take much sales at all to cover R&D.
4 ≈ One
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