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Forums - Sony - Why I think Sony could drop 100 dollars on the PS3 and profit from it.

You keep posting before I do!!! >



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glari93 said:
i wouldnt buy a ps3 even if it got a 200 dollar price cut

Congrats for you. If you have no interest in a PS3 why waste your time in a PS3 related thread?

Seems kind of pointless wouldn't you agree?

 

Go take monlosez advice.




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goddog said:
Euphoria14 said:
Slimebeast said:
Euphoria14 said:


@johnsobas

I understand that you think he is wrong but you at least have to come in with some kind of rebuttal other than "out his ass" or "assumptions" because everyone here is only assuming Sony is still losing so much money.


It's cold hard facts that Sony is losing money.

Show me then.

Financial report doesn't prove PS3 is losing all that money.

Doesn't Sony have more internal studios and anyone else? Haven't they been working on a shit load of titles between this year and last?

Hasn't Sony been pouring money into R&D for the PSP-3000 that released last year and the PSP-Go that is releasing this year?

Hasn't Sony been pouring money into R&D for the PS3 Slim if it indeed real?

Haven't they poured more money into advertising?

 

I don't know exactly how much each factors into their loss for the previous year but I can say it pretty safe to say that all of that lose isn't directly connected to the PS3.

Anyone thinking so is just assuming and that is no worse than what the topic creator is doing. Am I right?

I am pretty sure if MS had around 15 studios working on stuff instead of just 4-5 they wouldn't have looked so hot either. Am I right?

If next report shows profit there will be a lot of people here who will get a nice big "I told you so".

 

If i remember right did they not say in may/april they were still losing 20-30 bucks each ps3 sold? it was all over the boards 

im lazy so this is the best i could do

 

http://www.tomsguide.com/us/sony-ps3-playstation-cost-price,news-3947.html

 

to go from that to major profit right now would seem odd 


In may, sony cfo when replying to Jan - Mar quarter said the were still losing ~10% (aka a little less than $40)

1. If you are correct about the only thing causing them to lose money being R&D... then that is a hell of a huge set of R&D costs just for PSPGo/PS3 slim... costs that were barely noticed when they made the PS2 slim and the original PSP.
As such, it still doesn't make sense for them to drop the PS3 price just because the PS3 alone might barely be profitable, because they are going to lose the supposed profits bein made from it now and sink into deep red with all those huge R&D costs when they start developing PS4/PSP2 (which will surely cost a shitload more than a slim PS3 and PSPGo)

2. If the scenario above is part of the problem, nd in addition you are correct that R&D for PS4/PSP2 is costing them anything significant now.... then that is just as bad because R&D for those is going to spiral in the next couple of years.

3. If you are wrong, and there are no significant R&D costs at the moment, and it is still the PS3 losing money, well... it still makes no difference, there won't be a huge price cut.

--------

I could see a $50 price cut this Winter being possible, but I don't believe PS3 hardware is profitable now, and certainly won't be when they cut a further $50 off.

Sony themselves have stated (back in December) that the PS3 business (HW and SW) just in Europe could become profitable about March 2009
if that indeed happened then by now the PS3 business could be profitable (read: just breaking even) worldwide.... but PS3 hardware is not there yet.



"If you are correct about the only thing causing them to lose money being R&D... "

Point me in the direction I ever said that...



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These companies should just make Castle Crashers playable between PS3 and 360 owners.

Problem solved!!!

No more arguing, just more Castle Crashers.



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Euphoria14 said:
goddog said:
 

If i remember right did they not say in may/april they were still losing 20-30 bucks each ps3 sold? it was all over the boards 

im lazy so this is the best i could do

 

http://www.tomsguide.com/us/sony-ps3-playstation-cost-price,news-3947.html

 

to go from that to major profit right now would seem odd 

Stringer also said after the Activision "threat" that if they dropped the PS3 price they would be losing money on each console sold. Gave the impression that they were possibly already profiting.

Then we also could think that the $20-30 lost per console was based on the current models costs. This new number could be based on Slim cost.

We don't know really but it is fun to try and pick it apart of hopefully in the end find out if we are right.

i understand main reason i brought up the PPC shrink issue was that. however if we are basing these on the next model they are fairly genourus in terms of what we think cost savings will be. unless they are striping more parts out i do expect it to be cheaper overall but not anything that could make a 100 dollar price cut profitable this year... maybe next spring... 

 

i feel it will be a slim and no price cut till next year to help bring in profit, but i could be wrong and i dont mind if i am. 

 



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goddog said:
Euphoria14 said:
goddog said:
 

If i remember right did they not say in may/april they were still losing 20-30 bucks each ps3 sold? it was all over the boards 

im lazy so this is the best i could do

 

http://www.tomsguide.com/us/sony-ps3-playstation-cost-price,news-3947.html

 

to go from that to major profit right now would seem odd 

Stringer also said after the Activision "threat" that if they dropped the PS3 price they would be losing money on each console sold. Gave the impression that they were possibly already profiting.

Then we also could think that the $20-30 lost per console was based on the current models costs. This new number could be based on Slim cost.

We don't know really but it is fun to try and pick it apart of hopefully in the end find out if we are right.

i understand main reason i brought up the PPC shrink issue was that. however if we are basing these on the next model they are fairly genourus in terms of what we think cost savings will be. unless they are striping more parts out i do expect it to be cheaper overall but not anything that could make a 100 dollar price cut profitable this year... maybe next spring... 

 

i feel it will be a slim and no price cut till next year to help bring in profit, but i could be wrong and i dont mind if i am. 

 

Well, then here is to hoping that you are wrong.

I just can't see Sony going into another holiday without a price cut. They will get slaughtered.



iPhone = Great gaming device. Don't agree? Who cares, because you're wrong.

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Anyways it's been fun guys. Best discussion I have had in a while.

Time to play some games.



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JEDE3 said:
"If you are correct about the only thing causing them to lose money being R&D... "

Point me in the direction I ever said that...

Well the losses the gaming division has been taking don't seem to have any other explanation if you thing PS3 is profitable.