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Forums - Sony - SONY Price cut strategy

JEDE3 on 18 August 2009
Munkeh111 said:
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


Of course. No shipping or packaging. Only servers.



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Munkeh111 on 18 August 2009
JEDE3 said:
Munkeh111 said:
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


Of course. No shipping or packaging. Only servers.

And no retail cost



Aion on 18 August 2009

They will do good.



 

   PROUD MEMBER OF THE PLAYSTATION 3 : RPG FAN CLUB

 

Dgc1808 on 18 August 2009

Pretty safe bet the PSPGo's profitable.
I wouldn't be surprised if the Slim was profitable at 299USD. We know damn well that it's profitable at 299Euros.

Also, SONY's finding quite a few ways to make money now. VidStore, PSN Games, PS1 Classics, Home Items, Premium Themes, Qore, App Store for PSPGo, Playstation Network Cards.

I think they'll start posting some profits in the games division.



4 ≈ One

Mummelmann on 18 August 2009

Production costs are probably down again and a smaller product will also be cheaper to pack, transport and distribute.
Besides, I don't think a company that's been in this game for this long would suddenly decide to make a fatal business move that could kill them instantly.



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theprof00 on 18 August 2009
MDMAniac said:
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 *

haha, ok, I realize it's been said a million times before but I'm pretty sure this is my first time saying it. This also might be the first time that it's true. But like I said, it will probably only be for a year or two unless other events happen.



iron_megalith on 19 August 2009

I find it hard to believe that they made this move unknowingly of the price to pay.

They probably learned from the past problems so.. no worries...