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[QUOTE=syko;707808]Because clearly Sony are making so much money that they can afford a [URL="http://biz.gamedaily.com/industry/feature/?id=15086"]price drop[/URL] :rolleyes:[/QUOTE]
In a few years the price of producing a console drops significantly. Why isn't the PS2 still selling at it's original price? Not solely because of Sony's profits generated by it, but because the price to manufacture them goes down over time.
To add to that, Sony have long expected huge losses in the gaming division as a result of the PS3. If they wanted to make profit right now, they would raise the market price above the cost price.
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[QUOTE=ADRENALINE;707812]In a few years the price of producing a console drops significantly. Why isn't the PS2 still selling at it's original price? Not solely because of Sony's profits generated by it, but because the price to manufacture them goes down over time.[/QUOTE] SOny aren't the only ones that can drop their price
[QUOTE=ADRENALINE;707812]
To add to that, Sony have long expected huge losses in the gaming division as a result of the PS3. Besides, if they wanted to make profit right now, they would raise the market price above the cost price.[/QUOTE]
They also expected to sell far more consoles which they aren't, what is far worst for them is their sales in japan from week to week is 1/7 of the Wii which is pretty bad considering the 360 doesn't offer any competition there.
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[QUOTE=syko;707814]SOny aren't the only ones that can drop their price[/quote]
They won't be dropping it to directly compete with the price of the Wii - that would be foolish. Once the price of the PS3 comes down to a realistic level that most people can afford, the buyers will flock to the system. Many analysts predict the PS3's sales victory by 2010.
[quote]They also expected to sell far more consoles which they aren't, what is far worst for them is their sales in japan from week to week is 1/7 of the Wii which is pretty bad considering the 360 doesn't offer any competition there.[/QUOTE]
Ironically, the less sales they are making, the less money they are losing. If they sold double the amount of PS3s so far, they would have lost alot more money as they lose money on each system they produce.
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[QUOTE=ADRENALINE;707819]They won't be dropping it to directly compete with the price of the Wii - that would be foolish. Once the price of the PS3 comes down to a realistic level that most people can afford, the buyers will flock to the system. Many analysts predict the PS3's sales victory by 2010.
.[/QUOTE]
Yes and many of these so called Analysts suddenly changed there predicts to be more balanced between the three consoles.
[QUOTE=ADRENALINE;707819]
Ironically, the less sales they are making, the less money they are losing. If they sold double the amount of PS3s so far, they would have lost alot more money as they lose money on each system they produce.[/QUOTE]
This is a major misconception since Sony have shipped 5.5 ps3's but have only sold around 3 million so in reality they have made nearly twice as many consoles as they have sold so they would be much better off selling them in order to recoupe some of there loses.
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[QUOTE=syko;707822]Yes and many of these so called Analysts suddenly changed there predicts to be more balanced between the three consoles.
This is a major misconception since Sony have shipped 5.5 ps3's but have only sold around 3 million so in reality they have made nearly twice as many consoles as they have sold so they would be much better off selling them in order to recoupe some of there loses.[/QUOTE]
Analysts put in more thoughts and factors than we do. It's common sense that once they drop the price there will be a sales surge. With the PS3s high price and premium reputation, you will see higher demand elasticity when they lower the price compared to the Wii (If Nintendo decided to cut the price in the future).
Sony forcasted alot more PS3 sales in the months after launch. They are producing at lower capacity now, hence technically saving money (or reducing losses).
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[QUOTE=ADRENALINE;707829]Analysts put in more thoughts and factors than we do. It's common sense that once they drop the price there will be a sales surge. With the PS3s high price and premium reputation, you will see higher demand elasticity when they lower the price compared to the Wii (If Nintendo decided to cut the price in the future).
Sony forcasted alot more PS3 sales in the months after launch. They are producing at lower capacity now, hence technically saving money (or reducing losses).[/QUOTE]
So your saying Sony is better off selling a smaller consoles until they can afford to drop their prices which requires component costs to drop which in turn requires a high number of consoles to be produced.
I think your forgetting that Sony where trying to offset its Hardware losses with Software sales which unfortunately aren't as large as they sould be mainly due to the lack of AAA titles.
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[QUOTE=Cotterik;707797]That'd seem like Sony was trying to make enemys out of a company that it had never rivaled before or been in the same media category as before, but it did effectively work out that way, yes :p[/QUOTE]
The long and complicated history is this- Sony and Nintendo worked on a CD add on and Nintendo backed out, so Sony decided to release it as a standalone console, which went on to span the PS2 that totally pw3ned the Gamecube.
so yes, they might have been enemies in some way.
With that said though, I kinda have to give the xBox developers credit for an awesome console, with triggers that are 10X better than the PS3s triggers. Sorry sony, I'm not used to triggers on Playstations.
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[QUOTE=syko;707832]So your saying Sony is better off selling a smaller consoles until they can afford to drop their prices which requires component costs to drop which in turn requires a high number of consoles to be produced.
I think your forgetting that Sony where trying to offset its Hardware losses with Software sales which unfortunately aren't as large as they sould be mainly due to the lack of AAA titles.[/QUOTE]
Component costs don't solely depend on the size of Sony's output. They are still producing millions of units - the price will inevitably go down. Again, Sony forcasted huge losses - they aren't surprised at the loss they are making and they weren't betting on software to change that.
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amongst other things, sony needs to fix up their dismal online service.
also the whole 'we charge more for shit you don't need' is kinda irritating.
i personally find the PS3's controllers a whole new kind of retarded, but a lot of people seem to have no issue.
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[QUOTE=clutch-monkey;708067]amongst other things, sony needs to fix up their dismal online service.
also the whole 'we charge more for shit you don't need' is kinda irritating.
[/QUOTE]
I play socom 3 online, pretty much every other day. I pay nothing, its fun as hell.
It's microsoft that rips you off. If you're going to pay 600 plus dollars for all the crap you need, why not make online free?
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[QUOTE=The_Canuck;708079]I play socom 3 online, pretty much every other day. I pay nothing, its fun as hell.
It's microsoft that rips you off. If you're going to pay 600 plus dollars for all the crap you need, why not make online free?[/QUOTE]
i'd rather pay the $11 a month live costs then have a big steaming pile of shit for free.
plus, the whole msn thing is kinda handy.
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[QUOTE=clutch-monkey;708082]i'd rather pay the $11 a month live costs then have a big steaming pile of shit for free.
plus, the whole msn thing is kinda handy.[/QUOTE]
Whats shit about it?
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[QUOTE=ADRENALINE;707804]In a couple of years time the PS3's price will free fall - at which time Microsoft and Nintendo will die an uncomfortable death at the hands of Sony.[/QUOTE]
I seriously doubt that. Sony, imo haven't done a great job with the PS3. I visited my friend last week who had one. I dont know what all the fuss is about, the sixaxis is rather gimmicky when you've had a good stab at a Wii and the the graphics, whilst nice, aren't worth the moolah over 360, nor are the games and the fun playing them worth the extra cash out of pocket of a Wii.
By the way, 360 online market is terrific, I'd much rather pay the monthly fee than put up with Sony's 'tarded efforts thus far.
N64 > all
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[QUOTE=Blitz_;708182]I seriously doubt that. Sony, imo haven't done a great job with the PS3. I visited my friend last week who had one. I dont know what all the fuss is about, the sixaxis is rather gimmicky when you've had a good stab at a Wii and the the graphics, whilst nice, aren't worth the moolah over 360, nor are the games and the fun playing them worth the extra cash out of pocket of a Wii.
By the way, 360 online market is terrific, I'd much rather pay the monthly fee than put up with Sony's 'tarded efforts thus far.
N64 > all[/QUOTE]
I agree that Sony did a crappy job with PS3, but that won't stop the majority of ordinary people from buying it once the price nose dives.
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Do you guys always have to turn threads into console debates? I thought this little joke could give everybody a break from console war, then all of a sudden people are like "naw this system sucks", "this system pwns that system", etc.
My PC will blow all of you away, literally, with fans and ultimately save the X360 from PS3 heat. :D