THINK ABOUT THIS.

[rasputin310]

PRICE OF PS3.


They announced they (sony)cut manufacturing costs were cut by 70%.
The price was 400$
They cut price by 100$
That price cut was 25%
They COULD have made a 50% price cut and still had a 10-20% PROFIT MARGIN
You are now realising what that could have done to the market and who would have single handedly WON THE CONSOLE WAR

Way to drop the ball.

 

[Pimppeter2]

So they tried to make money?

(In shock and denial)

 

[RedPandaMan]

But then they'd lose money. Cutting another 50% would lose that much more money, and Sony likes its money.

 

[Dudemeister]

I will not think about this!
Then again, I paid full price for a launch PS3 and I want other people to have to pay as much as possible, I'm just bitter like that.

 

[Radeonx]

..So? There isn't any discussion, and your (bitching, rant? I can't tell.) whatever is just flaming Sony. A pointless thread.

 

[Sassafrass]

O.O I don't like maths...Hang on a tic.



Yep, you're right, they could of. And they did drop the ball. (sort of. Take in to account staff wages as well)

 

[thiosk]

So, sony has somehow managed to turn a profit on a console sale?

That would be amazing, since NO ONE makes a profit by selling consoles (except nintendo, five bucks per wii)-- they make money by selling the games.

 

[rasputin310]

I'm not FLAMING sony I was jumping up and down the day they dropped the price.it's just I'm dissapointed they decided NOT to win the console war single handedly.

 

[rasputin310]

@ marq WELL IF THEY DROPPED THE PRICE BY 50% I THINK IT WOULD BE PRETTY EASY -_-

 

[Spudgun Man]

Ah yes, I coughed up the full amount for a 40 only for it to fail on me and die.

But then thanks to the gaming gods sony cut the price of the 60 meaning I got a replacemnt 60 instead of a 40. Oh happy days.

 

[esperandote]

PRICE OF PS3.


They announced they (sony)cut manufacturing costs were cut by 70%.
The price was 400$
They cut price by 100$
That price cut was 25%
They COULD have made a 50% price cut and still had a 10-20% PROFIT MARGIN
You are now realising what that could have done to the market and who would have single handedly WON THE CONSOLE WAR

Way to drop the ball.

1.the costs they are talking about are the initial costs when the ps3 just came out, about $500-600 (probably wrong).
2.if you also consider the initial sale price (what was it?) then the cut percentage is also hier.
3.they have to leave room for profit, specially since in the begining they were losing money for each sold console (correct me if im wrong)

 

[steveo_justice]

It's called "Lying to the invewstors." WE play games, we don't care how much the price was dropped. And it's funny how you talk about this not knowingt what the actual production costs ARE (they eat a few hundred on each unit).

 

[Legion]

But then they'd lose money. Cutting another 50% would lose that much more money, and Sony likes its money.

It also needs it, considering they are running a loss on each console made.

They made a price cut. Be grateful, some people paid more than you can.

 

[Armored Prayer]

Damnit, this involves math. I suck at math!

 

[cloudywolf13]

Why would you want an end to the console wars?

 

[PxDn Ninja]

PRICE OF PS3.


They announced they (sony)cut manufacturing costs were cut by 70%.
The price was 400$
They cut price by 100$
That price cut was 25%
They COULD have made a 50% price cut and still had a 10-20% PROFIT MARGIN
You are now realising what that could have done to the market and who would have single handedly WON THE CONSOLE WAR

Way to drop the ball.

You are calculating based off the assumption that they were profiting with the original setup.

The price was 400, but say it was 500 to produce. So they reduce by 70%, then drop the end price by 25%. Granted they could have gone further, but I'm sure they would like to make money off their product.

Personally, I think the price for the PS3 is just fine.

 

[Jinmasa 8]

Gasp, sony could have droped the price more for the ps3 but didnt so they could more money,dear lord i think i might faint from the shock.(oh no choking on sarcasm cough cough)

 

[nezroy]

Manufacturing costs are not the only expenses related to the sale of an item. Marketing, distribution, etc. all play into that too. Manufacturing cost just covers the expenses of getting the item out the factory door, not all the other ancillary activities of getting the item to market and in consumer's hands.

Also, as others have pointed out, they may have already been absorbing early losses with their initial price-point under the assumption that they would be able to reduce mfg. costs later on in order to break even or gain a profit margin.

 

[Mcface]

Why would you want an end to the console wars?

console wars were created by the console creators to maximize profits.

little do you know, they are having a secret meeting with the masons tonight, they will merge into one company...and create a super console. Then, they will increase the price tenfold, and the New World Order will begin!