Virtua Fighter 5 is coming out for the PS3 both in the US & Japan, Virtua Fighter 5 will not be released on the 360 in Japan..
Virtua Fighter 5 is coming out for the PS3 both in the US & Japan, Virtua Fighter 5 will not be released on the 360 in Japan..
That changes some stuff. Maybe they make VF5 for 360 regionfree so ppl in Japan kan import.Originally Posted by MarioMania
yeah they are having problems selling the grill out here. Not to mention the ones that do sell end up in the used section very fast because so many japanese don't want them and end up trading them in fast.
Having worked retail, it's often cheaper to Mark down an item Wholesale price then to ship it back. (That's how I obtained my 100% complete Disney collection; my clothing store got frustrated with the lack of sales & marked the videos down to 5 dollars each.)
Walmart/Target/etcetera might wait until Christmas, but if they've got 5 rooms filled with non-moving PS3s, space that could be better used to hold Elmo dolls or Spiderman slippers, they will advertise a sale.
As happened with Atari and Colecovision consoles in 1984.
If Sony were smart, they would lower the price to $350 to beat the X360. Sell a couple tens of millions of PS3s and recover their ~$200 per unit losses through Games and Bluray disc sales at $60 a pop.PS3s cost too much to lower the price
Sony MUST win this battle.
If they lose, not only do they lose the game market but also the dominance in HDTV discs. They will lose *billions* in potential Bluray profit from 2007 to 2030... that makes a few dollars loss on the PS3's Sale Price look tiny & insignifigant.
Last edited by veronica_marsfan; 01-25-2007 at 08:12 AM.
Lowering the price will only help a bit. The popular games must be avalible for big sales to accure.
If Sony did this they would take a bath on the console and probably kill it off. It's already losing them almost $200 per console. If they drop the price, they won't make squat. Add to that the fact that Blu-Ray hasn't really taken off yet and there aren't enough PS3s in homes yet to make all that money back on games, and Sony is screwed with the launch price for a good, long while.
If Sony lost money on PS3...
It does not matter. They'll still make plenty of money off the $60 games and Bluray movies. "They won't make squat" does not make sense when you look at the huge profit Sony can make from the software (times two: games & movies). Sony will be bathing in Software/Bluray license fees & raking in money faster than they can count it.
$5 per disc times 1 billion discs sold between now & 2015 == $5 billion!!! That will more than cover any PS3 losses.Is there any doubt that the PS3, with its huge backlog of PS1/2 classics (and people's personal libraries), would not sell. Of course it would! People equate PS3 with their love of the old PS1/2 consoles.
Only thing holding it back, now, is the insane pricetag.
Drop it to $350 and it will sell as rapidly as the PS1/2 did.
Last edited by veronica_marsfan; 01-25-2007 at 03:21 PM.
That ought to shrink their little sphincters. But it won't.
It is not like slow sales or a price drop would teach them humility, anyway. The company hasn't shown a sign of humility through 12 years in the video game console market so why start now?
True, but why would anyone pay $350 for a PS3 to play PSX and PS2 games when you can get a PSX for like $10 and a PS2 for $50? It still needs the A+ titles.
You're just assuming. Gather the facts and base your theory on real numbers.
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There are plenty of consoles throughout history that have failed to sell at a more "reasonable" price than the PS3. You need the friggin' games that are capable of selling systems and you need them coming out regularly. Simple as that.If Sony lost money on PS3...
It does not matter. They'll still make plenty of money off the $60 games and Bluray movies. "They won't make squat" does not make sense when you look at the huge profit Sony can make from the software (times two: games & movies). Sony will be bathing in Software/Bluray license fees & raking in money faster than they can count it.
$5 per disc times 1 billion discs sold between now & 2015 == $5 billion!!! That will more than cover any PS3 losses.
Is there any doubt that the PS3, with its huge backlog of PS1/2 classics (and people's personal libraries), would not sell. Of course it would! People equate PS3 with their love of the old PS1/2 consoles.
Only thing holding it back, now, is the insane pricetag.
Drop it to $350 and it will sell as rapidly as the PS1/2 did.
The console pretty much just launched over there and they're already cutting prices? I recall them doing the same for the X360 not too long after it's launch to "move units faster." Talk about an impatient country.
May 19, 1998
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I think you're right on the money. I read somewhere (wish I could recall where) that sony needs to sell 17 games per ps3 to break even. 17 freaking games on each system sold before they turn a profit. They are totally stuck. And those numbers do seem reasonable. If they are losing a couple hundred a console and make say $10 a game on software, they do need to clear those kinds of #s... which means if they drop the price any further they are royally screwed as they'll never sell enough games to make it up. I think they are just trying to break even in order to get the blu ray machines in people's homes to win that format war.... but this whole system is starting to turn into a huge debacle IMO. I can't see it getting too much support at these price levels.
art of being a businessman is NOT having the facts, and yet still taking the risk. In 2001, did Steve Jobs have any "facts" to back-up his belief that Ipod would be the next biggest seller for Apple?
Nope.
But he went through with the product anyway. $5 per disc times 1 billion discs sold between now & 2015 == $5 billion!!! That will more than cover any PS3 losses by lowering it to $350.
good point. I think right now sales might be lagging due to the lack of titles for the system. As more games start coming out for it I think we will see a boost in the sales numbers.
Sorry this post is not on topic, but this post is straight up wrong. Businesses always have plenty of facts before releasing a product, even new porducts. There is market research, R&D, focus groups, etc., etc.. Companies will never just develop a product based on whims. That is a sure fire way to failure.
Back on topic: I may have missed it, but, is this a real price cut, or is it a deal like the 360 had in Japan at first? That being, subscribe to our junk, get $$ off.
I'm pretty sure Japan is used to things either selling out fast or not at all. Japanese people seem to like to buy 3451583015631676 copies of the same popular games (ie dragon quest, pokemon, brain age) and consoles (ie the DS). Something just sitting there is fairly clear that no one cares. You gotta remember that "most" of the japanese game sales take place in what, three cities? If you have however many million people living in tokyo now and nobody's buying the thing, it's not like there's a lot of hope that it's gonna sell anywhere else in the country either.
The story I related is 100% true. I just watched a documentary about the Development of the Ipod, and how no one knew for sure if it would sell or flop.
There's a difference between not knowing how your product will preform, and making a decision without thinking. Apple saw the potential for the mark and took a stab at it.
Now as for your baseless theory. You're assuming that in 8 years + a few months sony will make 5 billion dollars on Blur-ray and PS3. Well that's great, but five billion in 8 years is hardly impressive. Factor in the cost of employees, disc production and developmentment on their own titles, the huge loss on each PS3, new consoles launching in 2010, the instability of the HD market, the rise in digital distribution, R&D costs for the next system which by your claim would be 2015, the rather lackluster preformance of other Sony divisions, stock price troubles and lawsuits (they will happen) and that 5 billion quickly get's cut down to pathetic.
Hell your arguement is starting to sound more like the ones i have with RCM, only he generally has at least one leg to stand on. You're theory is based on nothing but you're on beleives, fails to take any business logic into account and generally seems like an abysmal business decision.
Oh and let's not forget the shareholders, do you think they'd approve of losign that much money without an immediate turnaround? The action would most likely be seen as an act of desperation and that would hurt Sony's stock price and that will do them no good.
They make about 2% on consoles since, well, forever.The retailers don't to my knowledge even make 20% on the hardware so they'd be taking a loss to do that
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
Last edited by rbudrick; 01-31-2007 at 04:54 PM.
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