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Forums - Sony - SONY Price cut strategy

Am I the only one worried about SONY now?


I get the feeling that SONY is like the man who buys his daughter what she wants even though he doesn't have the money for it...


How can SONY support a price cut? Can they generate enough income from games?


They will get more potential customers for HOME and PSN but will that make up the difference?

Or is this just part of the 10 year plan. They need to get market share now, and take advantage of the turn around in the recession / holiday season.

 

What do you think?



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HOME DANCE PARTY WITH THE SONG: TONIGHT!!! TONIGHT!!! TONIGHT!!! TONIGHT!!! TONIGHT!!! TONIGHT!!! TONIGHT!!! TONIGHT!!! TONIGHT!!! TONIGHT!!! TONIGHT!!! TONIGHT!!!



PSN: Skiptomylou41k

Gamertag: Skiptomylou41k

PS3 Slim/Xbox 360 Short/Wii Black/PS2 Slim/Psp/DS

Cypher1980 said:
Soon the Darkside will be irresistable and will crush the MS rebel scum underfoot.

The Wii owners are like Ewoks. The Evil empire will tolerate them but turn their forest moon into a secret base.

I think Sony is counting on an improvement on their electronics business. If it happens, that may generate enough profit to balance out the loss from the PS3 slim.

I don't think the recession's effects will end that soon though.



My Mario Kart Wii friend code: 2707-1866-0957

The PSP GO!, along with the PSN which has generated over $280 million in revenue.. I also believe that they wont be loosing much on the PS3 SLIM, remember reports say it only costs $260 to make



 

mM
leo-j said:
The PSP GO!, along with the PSN which has generated over $280 million in revenue.. I also believe that they wont be loosing much on the PS3 SLIM, remember reports say it only costs $260 to make

Where are those reports? The last official figure from Sony was $440... that's for the fat PS3 probably, but $260 would be 40% lower which I doubt.

 



My Mario Kart Wii friend code: 2707-1866-0957

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Everyone yells "pricecut" but the fact is that price cuts are a way to stimulate demand that isn't there. How many price cuts and price "adjustments" has PS3 gone through in 3 yrs?

When/If this price cut fails to sustain a demand, what is Sony's next move?

And how much $ will they be losing as a result of this move?



Bet between Slimbeast and Arius Dion about Wii sales 2009:


If the Wii sells less than 20 million in 2009 (as defined by VGC sales between week ending 3d Jan 2009 to week ending 4th Jan 2010) Slimebeast wins and get to control Arius Dion's sig for 1 month.

If the Wii sells more than 20 million in 2009 (as defined above) Arius Dion wins and gets to control Slimebeast's sig for 1 month.

NJ5 said:
leo-j said:
The PSP GO!, along with the PSN which has generated over $280 million in revenue.. I also believe that they wont be loosing much on the PS3 SLIM, remember reports say it only costs $260 to make

Where are those reports? The last official figure from Sony was $440... that's for the fat PS3 probably, but $260 would be 40% lower which I doubt.

 

http://www.edge-online.com/news/ps3-manufacturing-costs-down-70-per-cent-report

there you go



 

mM

@ arius, 3 and we don't know how much this will cost them

The main way to make up for this is to make the go so expensive, Pachter thinks it actually costs less than the 3000 which is apparently profitable already, so they will be making tons if the go does sell well. Anyway, with GT 5 round the corner (hopefully) that will certainly recoup some costs.

Ultimately, we don't know how much the slim costs to make, but we will probably know in a few weeks



WTF doom and gloom already?



wow, this is pathetic:
commenting on costs that you don't even know.

Look this is a 300$ ps3, which outsold the 3-6 in the same amount of time, has Gran turismo 5 coming out within a year, God of war 3, ratchet and clank, heavy rain, uncharted 2, WKC, 2 FFs with one being exclusive, an upcoming twisted metal, agent, modnation racers, and it's slimmer, is nicer looking, and uses less power. On top of that, they have motion controls similar to the wiimote coming out along with a camera, and free online.

This console is really going to dominate for the next year or two.

EDIT: costs are recoverable through attachment rate. With all these high profile games out, plus a lot that are out already, expect sony to be making profit on ps3 come this time next year.