ReiGn said:
http://www.gamespot.com/news/6143174.html
Low earnings? According to the article Sony Pictures is the only division took a hit. Their gaming division is their most succesfull one at the moment
I've read a few other articles that show a few different standpoints and take into consideration a few lawsuits as well as the fact that Sony may have dodged a bullet in a class-action lawsuit against the PSP. Why? iPod got in trouble with the whole Nano screen, and people forgot about Sony's lousy response to the pixel problem long enough for Sony to fix it. I take into account the past, present, future, and all possible angles surrounding the thing.
There won't be a "low end" PS3. there won't be a 2 Sku release of any kind.. SCEE's VP already said that launching with 2 sku's would confuse both developers and consumers. Sony didn't become #1 by making retarded decisions.
I never said there
was going to be a low-end =/ I said that
if they made a low-end, all that junk included...or should I say
discluded? would make more sense at $400.
bam, If Sony decides to sell the PS3 for $800, they will actually gain profits in their first year from release, because according to analysts, the PS3 costs $475 each to make. $101 each for the RSX, BD drive and the Cell, the rest comes from the usb ports, bluetooth etc. But nobody knows how much they really are except from Sony. And as i've said from the thread in CC, Sony has one of the best fabrication processing plants in the world. They can manufacture their parts cheaply with their 90nm process, and will eventually shift to 65nm for the Cell to attain higher chip yields per wafer. Plus, it's not just Sony that's paying for the costs. both IBM and Toshiba contribute to the manufacturing plants of the PS3's parts. All R&D's were not done by Sony alone. So they actually don't have a problem at selling the PS3 at a competitive price. And the fact that they are not afraid and is willing to take the loss gives us more reasons that Sony won't overprice that shit to $800.
$800
wouldn't be overpriced. Haven't you read the arguments that state that what is included in that over-junked hardware would cost most people well into several grand? The PS3 will, most assuradely and undoubtidly, have the prettiest graphics of them all; however, that does increase cost on more than one front. You'll likely see PS3
games at the most expensive they've ever been just to cover development costs. IBM and Toshiba are working with Sony, sure enough, but they don't play high-stakes games with their entire company. They will want compensation for their hard work, and you can bet they are charging Sony for their services.
Cost to Sony is not the only thing to take into consideration, and
that, mein fruend, is my point. My question is simple. Is Sony willing to gamble their entire company to stay on top
and infiltrate Microsoft
and increase profitability in their gaming devision to a larger bottom-line in their own company? That's the three things they
must accomplish to maintain a price-point of $400 for the PS3. I'll take your word that the PS3 costs
Sony $475 to produce, but that's most certainly
not taking R&D costs from both Sony and company (IBM and Toshiba). Production costs and Research and Development costs are two very different things.
Why are they trying to "infiltrate" M$ with BR? Sooner or later M$ will have to adapt to BR, since HP and Dell are fully supporting Blu-Ray. M$ needs them for their OS.
Dude... I said Sony
is trying to infiltrate Microsoft, but I'll add one more thing. They are
hoping to
successfully corner the market with BluRay like they couldn't with Betamax. We all saw how big a flop that was :rolleyes Can we seriously believe that Sony is up for the task of cornering the market with a technology that has that much of a price-point difference from a current standard?
Beta > VHS...
Winner? VHS =/
BluRay > DVD
Winner...? Undecided...
You cannot look
soley at production costs. The reason Microsoft is losing so much money on the 360 is
not production costs! They are taking an estimated hit of 50% (I think...) based
soley on R&D! They know that X-Box Live works, and they have strong reason to believe that XBL will make up for the R&D costs. Sony doesn't have the same reason to believe their online service(s) will do the same. They have no idea what type of gamble to actually take.
If they sell for $400, they are taking a huge gamble based on these facts.
1) The PS2 is currently on top, only dominated in Japan by the NDS and GBA.
2) The X-Box made up all R&D cost through soft income, XBL.
3) SquarEnix managed to make profit off an online game for PS2 and PC, Final Fantasy XI.
4) Betamax failed against VHS because the price-point was too high.
5) Nintendo is not trying to compete, anymore.
6) The above means only Microsoft, a sever underdog at the moment in world-wide videogaming sales, is their only competition!
7) Sony has lost any and all trump cards...exclusivity to SquarEnix for example.
8) HP and Dell have allready taken a stance for BluRay.
9) Only the rich and famous can actually afford BluRay, at the moment.
10) $400 means more sales than $800...but $400 means a
huge hit on profits based on R&D costs!
Just
think about it. I'm not saying we won't see it at $400. I'm saying how big a hit that would mean Sony takes. We
won't know until Sony gives us two things...
a) ...a solid, stable release date, and...
b) ...a solid, stable release price.
That means they can't meander around like Microsoft did! Sony should know this, but we'll find out soon enough.