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Forums - Sony - SONY Price cut strategy

silicon on 18 August 2009
theprof00 said:

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.

 

The pathetic comment applies to yourself as well from your reasoning.

 

Anyway, if good attachement rate can recoup the price cut then that's all I wanted to know.



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theprof00 on 18 August 2009

ooh nice one!
FAIL!

EDIT: my reasoning is pathetic because i listed a large number of exclusive big name games and features that rival the competition?



JEDE3 on 18 August 2009

...maybe...

....just maybe....

sony is profitable with ps3 and it really does only cost 250 - 280 to make now...

I know its a little crazy.



JEDE3 on 18 August 2009
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.

 

 

You are both wrong. Leo - the reports just said 70% reduction. Which would put it at 250 about. NJ5 - the last report put it at about 420.



Spedfrom on 18 August 2009

Would Sony really go from losing money on the PS3 to... losing money on the PS3 Slim? In the financial state they're in?

A little Common Sense guys.



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JEDE3 on 18 August 2009
Munkeh111 said:
@ 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


Wrong. The reason PSP Go! is so expensive is because Sony would be taking game sales away from retailer... Why would retailers want to carry a Go then? So to give retailers an incentive to carry the go they are giving them much more money per unit sold. If I were Sony the way I'd figure how much I'd give retailer is pretty much find the attach ratio of PSP and give them the cut of how many games sales theyd on average sell... maybe a little less than average.



ocnkng on 18 August 2009

I am thinking that the cost of production of the PS3 actually went down to about the $250 - 280 range or even lower sometime back.
What they did was to keep the cost at 399 and make as much money as they could with awesome exclusives like Killzone 2 and Infamous.
Then when the time was right they bring down the cost again. So now they make very little or no profit from the consoles but thats not the goal, the aim is to increase install base and then make money in the long run.
You could think of this as a whole new launch strategy for them.



 

It is better to die on one's feet

then live on one's knees

mesoteto on 18 August 2009

i will reserve judgement just yet

b/c we all know they are losing money as is and a price cut is either going to keep the heart beating or finish them off



 

JEDE3 on 18 August 2009
mesoteto said:
i will reserve judgement just yet

b/c we all know they are losing money as is and a price cut is either going to keep the heart beating or finish them off


Speak for yourself. We all know Sony is losing money but no one knows if the Ps3 is losing money. LOL @ your statement., The losses they incured on their last financials could have easily just been from slim and Go manufacturing. Think about it.



MDMAniac on 18 August 2009

So, if things won't go the way Sony is planning them to (ah, we all know poor Sony is not quite good at this lmao) then they may suffer even more losses in forthcoming quarters? Interesting... How much of it will put them out of business, any ideas?