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Thread: Japanese Retailers cutting ps3 system prices

  1. #41
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    Quote Originally Posted by rbudrick View Post
    They make about 2% on consoles since, well, forever.

    System Cost Price Margin
    Playstation 2 Console Silver $126.56 $129.95 2.61 %
    PlayStation 2 Compact Silver $125.00 $129.95 3.81 %
    Nintendo DS Lite all colors $128.25 $149.95 14.47%
    Playstation PSP Core $197.43 $199.95 1.26 %
    Xbox 360 Core $297.68 $299.88 0.76 %
    Xbox 360 Platinum $392.80 $399.88 1.79 %

    Those costs are within 1.25%

    You can see why resellers love the DS.

    -Rob
    Sorry if this steers the thread off topic, but I'd like to compare the figures from my distributors to those listed above. Here's what I can get:

    Playstation 2: Slim: $125.00 $129.99
    Playstation 2: Fat: $146.00 $149.99
    Gamecube: $98.00 $99.99
    Xbox: $145.00 $149.99
    PSP Core: $195.00 $199.99
    DS Lite: $126.50 $129.99
    Xbox 360 Core: $295.00 $299.99
    Xbox 360 Premium $388.00 $399.99
    Playstation 3 20gb $488.00 $499.99
    Playstation 3 60gb $585.00 $599.99
    Wii $240.50 $249.99

    Each retailer is given different pricing, so another store might have slightly different numbers, based on the distributor they use and the quantity they sell, but you get the basic idea. We don't make much. Most people don't understand the little money retailers make on video game hardware/software. If you keep excess inventory you're screwed. We do better on the accessories though. Sorry, You can now resume the PS3 bashing.

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    Quote Originally Posted by njiska View Post
    Apple saw the potential for the MP3 marker and took a stab at it [with the Ipod].
    Exactly. Which is what Sony should be doing with the Ps3, unless they want to be in 3rd place (in games) and lose the Bluray format (in movies) to HD-DVD. Sony should follow Apple's example.

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    Quote Originally Posted by veronica_marsfan View Post
    Exactly. Which is what Sony should be doing with the Ps3, unless they want to be in 3rd place (in games) and lose the Bluray format (in movies) to HD-DVD. Sony should follow Apple's example.
    First of all thank you for quoting me out of context and removing everything i wrote discrediting your ideas. That's really respectful of you.

    You don't seem to grapse this situation. Seeing a market and taken a chance is what Sony did by creating Blu-Ray, but taking a risk like selling the PS3 at a $400 loss per unit is just insane. It's nice to be making 5 billion 8 years down the road, but don't forget you have to pay for this shit up front. You can't manufacture on a promise. They're already taking a big loss upfront and they don't have invester confidence. Taking a bigger loss will cost you confidence with investors and developers which will inter keep you from returning a profit.

    All the same this argument is insane. If you really think this is a logically idea make a good argument. Don't just say, "Well Apple did it." Especially when apple didn't.

  4. #44
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    Amen. Selling them at 350 now is not going to happen. Why not just give them away them and "make it up" on movie and games sales? It doesn't work like that. You'd have to sell more games and movies than you possibly could to offset a $350 price. They have to sell a shitload of games and movies already on the back end just to make up their CURRENT hardware losses.

    I am sure there is nothing Sony would rather do right now than drop the price. Do you really think they want ps3's sitting on the shelf? They want them moved both to turn cash and to create excitement at retail. The fact that they can already be found at retail in January is NOT GOOD. That they won't drop the price just tells you that they are good and stuck with the current situation.
    Last edited by Bronty-2; 01-31-2007 at 10:11 PM.

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    Quote Originally Posted by njiska View Post
    You don't seem to grapse this situation. Seeing a market and taken a chance is what Sony did by creating Blu-Ray, but taking a risk like selling the PS3 at a $400 loss per unit is just insane. It's nice to be making 5 billion 8 years down the road, but don't forget you have to pay for this shit up front.
    (1) Just curious - Where did you get the $400 loss? $600 marked-down to $350 is only 250 loss.



    (2) That 250-per-unit loss can be made-up from multi-million sales of Final Fantasy 13/14/15 and other blockbusters. AND bluray movie/tv sales. (Classic model: Give away the shaver for only $20..... make the money on the sale of accessories.) Sony could survive using the same model as Shaver manufacturers & make money off the games/movies/tv shows' licenses.

    (3) I didn't quote your argument (last time), not because I was ignoring it, but because I considered it invalid. Example: Microsoft sold the Xbox at a ~$200 per unit loss for 4 years, and they lost millions of dollars during the process. Why? To gain market share. And it worked splendidly. According to your argument, Microsoft was stupid to follow that plan. (puzzled look)



    (4) What Sony is doing now, selling the PS3 at a pricepoint too high for the average consumer to afford, is equivalent to a Sprinter tying 100 pounds around his torso. You only do that if you want to fall behind the competition & ultimately lose the race.

    .
    Last edited by veronica_marsfan; 01-31-2007 at 10:15 PM.

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    Quote Originally Posted by veronica_marsfan View Post
    (1) Just curious - Where did you get the $400 loss? $600 marked-down to $350 is only 250 loss.
    That $250 In addition to the $200 loss Sony is already taking it. That makes the total lose per unit $450, which is much worse.

    Quote Originally Posted by veronica_marsfan View Post
    (2) That 250-per-unit loss can be made-up from multi-million sales of Final Fantasy 13/14/15 and other blockbusters. AND bluray movie/tv sales. (Classic model: Give away the shaver for only $20..... make the money on the sale of accessories.) Sony could survive using the same model as Shaver manufacturers & make money off the games/movies/tv shows' licenses.
    Ok so you said about $5 pre disc right? So those FF13/14/15 sales amount to making back $15 per console. That leaves us with $435 lost per console still.

    Blu-ray sales will not be making Sony $5 per disc, but even if they did 40 Blu Ray movies only accounts to $200. That's still 245 lost. Keep in mind they make no money of of second hand purchases of movies.

    Also if any of those disc are Sony made their money has to go back to covering development and distribution costs first. Only profit on top of all that can be applied towards recovery of the inital loss.

    Quote Originally Posted by veronica_marsfan View Post
    (3) I didn't quote your argument (last time), not because I was ignoring it, but because I considered it invalid. Example: Microsoft sold the Xbox at a ~$200 per unit loss for 4 years, and they lost millions of dollars during the process. Why? To gain market share. And it worked splendidly.
    If you don't consider it valid then disprove it. DO NOT CUT IT OUT AND MAKE IT LOOK LIKE I'M AGREEING WITH YOU. Taking my comments out of context is something that pisses me off more then nearly anything else. Seriously don't do it again.

    As for the Xbox being sold at a major loss there's a few things you need to consider.

    1. The loss was planed from the start. It was a strategy, it was not a response to lackluster sales.
    2. Microsoft has a major bankroll and a strong company profit. Sony does not.
    3. It did not work splendely. The Xbox never made money and the Xbox 360 is barely making money. Though popular the Home Entertainment Division is still in the red.

    Quote Originally Posted by veronica_marsfan View Post
    (4) What Sony is doing now, selling the PS3 at a pricepoint too high for the average consumer to afford, is equivalent to a Sprinter tying 100 pounds around his torso. You only do that if you want to fall behind the competition & ultimately lose the race.

    IMHO if the PS3 doesn't drop in price soon.
    It will be another 3DO-type console (flopped).
    Do you know why the PS3 is as pricy as it is? It's because Sony can't justify losing anymore then they already are. You think they want it that expensive? No, but that's the price they pay for letting Ken Kutaragi run the show.

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