By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Sony - SONY Price cut strategy

Me 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.

very good post

 

the ps3 will sooner or later hit a sweet spot for it to dominate this gen at some point and I think the slim could also help this, with this price reduction and games like GT5, GOW3 etc on the way then this may just be the shot in the arm it needs.

And we all know Japan like small so a slim ps3 could go down well over there - who knows? 



 


Around the Network
Arius Dion 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.


Really, now? Been hearing this for quite some time...Let us just wait and see if this comes to fruition this time.



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.

JEDE3 on 18 August 2009
MDMAniac said:

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?


My idea is when trolls stop posting.



Munkeh111 on 18 August 2009
JEDE3 said:
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.

That too, but Sony certainly get more profit from the go



MDMAniac on 18 August 2009
Arius Dion said:
theprof00 said:

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


Really, now? Been hearing this for quite some time...

 

Can't help but giggle

 

* giggles *



Around the Network
JEDE3 on 18 August 2009
Munkeh111 said:
JEDE3 said:
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.

That too, but Sony certainly get more profit from the go


Are you sure about that? Think about it. If Sony gives them about 5 games worth of lost sales then thats about 50 - 60 dollars. Then the cut they'd normally get for selling a console which is about 20%. which would be like another 40 dollars. Then the more expensive parts.



DaBuddahN on 18 August 2009

I think the PS33 will be profitable within the next year. They may be breaking even right about now.. hardware wise. Sony is doing well, no excellent, but well. This upcoming year will be big, big in the sense that it will be very influential in determining how the console wars play out. With TGS I expect to see more announcements. A decent amount of announcements were Europe related, which makes sense considering GamesCon in is Europe. At any rate, this should boost PS3 sales nicely and close that gap between PS3 and X360 in NA. I'm not THAT worried about Europe.. GT5 + Price Cut + Slim should take care of that 1.5M gap.. or at least reduce it.



joeorc on 18 August 2009
JEDE3 said:
...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.

not so crazy when you think about it...for one the blue laser diode cost sony $7.00 per diode in jan 2008 and the diode is one of the most expensive parts when the PS3 was first released. so by now they are quite a bit less by now. Sony has been investing in blue laser diodes since 1997 so that is one part that would be cost reduced by now. in my opinion, also the heat sink plate from the 2006 and 2007 ps3 would have been reduced in cost due to the smaller chip scale wich means you can reduce the required passive Heat sink size and maybe the fan size reduction. also incorperate multi-function chipsets to reduce the chip area on the board. 

the very fact that is uses so much less in power and lighter points toward smaller heat sink and fan requirements. which reduces the overall cost of manuf. and production less plastic for the shell. less shipping cost for weight.



I AM BOLO

100% lover "nothing else matter's" after that...

ps:

Proud psOne/2/3/p owner.  I survived Aplcalyps3 and all I got was this lousy Signature.

Munkeh111 on 18 August 2009
JEDE3 said:
Munkeh111 said:
JEDE3 said:
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.

That too, but Sony certainly get more profit from the go


Are you sure about that? Think about it. If Sony gives them about 5 games worth of lost sales then thats about 50 - 60 dollars. Then the cut they'd normally get for selling a console which is about 20%. which would be like another 40 dollars. Then the more expensive parts.

If they don't get more from the hardware, they certainly get more from the software for obvious reasons



sguy78 on 18 August 2009

They can't continue this downward spiral.