PSX5Central
Playstation/Gaming Discussions => Gaming Discussion => Topic started by: THX on May 28, 2005, 07:05:05 AM
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http://www.gamespot.com/news/2005/05/27/news_6126611.html
Good to know. Wonder if Sony will match it.
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Ouch for MS
Double ouch for sony they will have to at least match this.
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There is no ouch involved at all.
Get machines into theliving rooms and make the money of periphials, and software sales. Its a model that has worked for 20 + years, and has made Sony a ton of money.
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Originally posted by ddaryl
There is no ouch involved at all.
Get machines into theliving rooms and make the money of periphials, and software sales. Its a model that has worked for 20 + years, and has made Sony a ton of money.
We all know that. That wasn\'t what I meant. The xbox should reatail at $399. 300 is ouch!!!!!!!!
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Actually it should retail for much more, but I still don\'t understand the ouch comment.
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Increase in losses with each harware sold perhaps
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Should I feel sorry for MS or Sony becuz of any potential losses on hardware per sku ?
I don\'t think so. Our consumer Dollar or Euro deserves substantially faster hardware for anything above 200.
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shweet. I cant wait.
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ouch for m$, but great for me
i\'ll get one for half price shortly after launch anyways
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i\'ll get one for half price shortly after launch anyways
Please do tell?
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Originally posted by mm
ouch for m$, but great for me
i\'ll get one for half price shortly after launch anyways
This will hurt Sony more
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Well,
XBOX 360 may looses some money for selling a console at $300, but they still stick to using DVD-ROM format, so the lost is still small compare to PS3 which added the new Blu Ray format which I like, but that\'s telling me PS3 is loosing more money than XBOX if PS3 try to sell it at $300.
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it was reported in Time magazine that MS didn\'t make a single dime in profits from the first Xbox.
I wonder if that is because of the money they had to dish out to get developers involved in their new console. Maybe this time around the devs will have more confidence in the Xbox 360 being a legit console and MS won\'t have to pay developers so much to be exclusive to their machine.
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Originally posted by Paul2
Well,
XBOX 360 may looses some money for selling a console at $300, but they still stick to using DVD-ROM format, so the lost is still small compare to PS3 which added the new Blu Ray format which I like, but that\'s telling me PS3 is loosing more money than XBOX if PS3 try to sell it at $300.
That too.PS3 seems like a more expensive hardware.Trying to compete a low price XBOX360 means more losses for Sony per hardware sold.
But its not just that.
MS has enough net profits from the Windows department to cover the losses.That what was happening with XBOX1.Since they are monopolizing the Op system market they make super profits.They have enough revenues to cover the losses from the XBOX department.
Sony on the other hand is a competitive company.Their prices are set according to the competitive market in all their products.Selling a product in loss hurts them more.
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Originally posted by Unicron!
Sony on the other hand is a competitive company.Their prices are set according to the competitive market in all their products.Selling a product in loss hurts them more.
I disagree in the case of the PS3. They manufacture there own silicon chips and hardware. Whatever they put into their machines they do pretty much at cost.
MS has to depend more so on 3rd party silicon and hardware manufacturers.
In the end both machines will be sold at a loss. Sony\'s machine may be a bit more of a loss, but Sony will more then likely sell more then 2x\'s as many PS3\'s and sell 10x\'s as many games and periphials. Sony\'s pricing structure will easily absorb any losses, as well as allow them to more wquickly reduce the future pricing of blu-ray Disc players and cell processors in the rest of their products that feature them.
So I don\'t believe the PS3\'s pricing in any way hurts Sony. Nor do I beleive MS\'s pricing of Xbox 360 will hurt them.
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Yeah these companies will bite the bullet. Sony more but like others have said. Like I care and don\'t feel sorry for them. If I can get a ps3 for $300 oh damn!!!!!!!!!!!!!:bounce:
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Originally posted by ddaryl
I disagree in the case of the PS3. They manufacture there own silicon chips and hardware. Whatever they put into their machines they do pretty much at cost.
MS has to depend more so on 3rd party silicon and hardware manufacturers.
forgive me but I didnt comprehend completely what you are trying to say. :confused:
Can u elaborate?
In the end both machines will be sold at a loss. Sony\'s machine may be a bit more of a loss, but Sony will more then likely sell more then 2x\'s as many PS3\'s and sell 10x\'s as many games and periphials. Sony\'s pricing structure will easily absorb any losses, as well as allow them to more wquickly reduce the future pricing of blu-ray Disc players and cell processors in the rest of their products that feature them.
Yeah I know that both will be sold at a loss.I didnt say otherwise.Now about how much games will be sold and profit they will gain with each hardware remains to be seen.
But still the more they are lowering their price the less their profits are.And Sony cares more about the profits they get from the PS3 than MS does because losses have more impact on them.
Though if I understood well what you were trying to say before is that MS will have to suffer more cost/less proft-than I thought since hardware manufacturers are expecting gain from MS\'s revenues while Sony wont have to deal with the same problem since they are the ones manufacturing their own hardware (excluding the RSX).Right?
So I don\'t believe the PS3\'s pricing in any way hurts Sony. Nor do I beleive MS\'s pricing of Xbox 360 will hurt them.
Well I am not absolute with my opinion.I am not saying that it will hurt Sony without any gain at all in the long run.What I am saying is that it has more impact on Sony than it does to MS.
MS can take the losses more than Sony can.
Not that you are wrong.You are right.
Sony hopes that in the long run they will be able to make profits.
Its just that they lose flexibility in decision making.Competition is tighter for them this time around.
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Originally posted by Unicron!
forgive me but I didnt comprehend completely what you are trying to say. :confused:
Can u elaborate?
Yeah I know that both will be sold at a loss.I didnt say otherwise.Now about how much games will be sold and profit they will gain with each hardware remains to be seen.
But still the more they are lowering their price the less their profits are.And Sony cares more about the profits they get from the PS3 than MS does because losses have more impact on them.
Though if I understood well what you were trying to say before is that MS will have to suffer more cost/less proft-than I thought since hardware manufacturers are expecting gain from MS\'s revenues while Sony wont have to deal with the same problem since they are the ones manufacturing their own hardware (excluding the RSX).Right?
Well I am not absolute with my opinion.I am not saying that it will hurt Sony without any gain at all in the long run.What I am saying is that it has more impact on Sony than it does to MS.
MS can take the losses more than Sony can.
Not that you are wrong.You are right.
Sony hopes that in the long run they will be able to make profits.
Its just that they lose flexibility in decision making.Competition is tighter for them this time around.
I don\'t think the loses on each console will bother sony. They already know how much this going to cost them. They wanted to make an entertainment console. The ps3 is an entertainment console. All reports was that ps3 would be $400-500. And it should be. $300 is huge. I am happy though. I can get all that extra stuff in ps3 for $300. It\'s an easy sell.
Sony expect to continue to be the dominating console maker and sell the most units and software. Like ddaryl said they will make up the loses. Hey we win and thats all I am concerned with.
I did not want to pay $465 for a ps3.
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Originally posted by QuDDus
I don\'t think the loses on each console will bother sony. They already know how much this going to cost them. They wanted to make an entertainment console. The ps3 is an entertainment console. All reports was that ps3 would be $400-500. And it should be. $300 is huge. I am happy though. I can get all that extra stuff in ps3 for $300. It\'s an easy sell.
Yeah I know what you mean.But that wouldnt have been their target price if it wasnt for XBOX360 ;)
They are forced to lower the price thanks to MS\'s flexibiliy at setting lower price.
Sony expect to continue to be the dominating console maker and sell the most units and software. Like ddaryl said they will make up the loses. Hey we win and thats all I am concerned with.
I did not want to pay $465 for a ps3.
Didnt say otherwise.I agree.We win at the end.I was only mentioning Sony\'s current state.I didnt mean that Sony will lose either.We dont know that yet.
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Originally posted by Unicron!
forgive me but I didnt comprehend completely what you are trying to say. :confused:
Can u elaborate?
Sony is a manufacturer of hardware components and silicon chips. They do not depend much on 3rd party vendors to develop chips or hardware for their machines. IMO they will even make the RSX GPU, all NVidia is doing is designing it.
Yeah I know that both will be sold at a loss.I didnt say otherwise.Now about how much games will be sold and profit they will gain with each hardware remains to be seen.
But still the more they are lowering their price the less their profits are.And Sony cares more about the profits they get from the PS3 than MS does because losses have more impact on them.
How do you figure Sony is more worried about profits then MS ???? Sony more then likely will sell considerably more PS3\'s then MS will sell XBox 360\'s, which also means more games and more periphials and more developers which means more liscensing etc... Sony may take a bigger hit but in the end they\'ll probably profit more, and continue there dominant market share. I\'m sure Sony has figured hardware losses into their equation based upon their projected market share. There is always some gamble that they may lose their market share, but IMO its Sony\'s market to lose.
Though if I understood well what you were trying to say before is that MS will have to suffer more cost/less proft-than I thought since hardware manufacturers are expecting gain from MS\'s revenues while Sony wont have to deal with the same problem since they are the ones manufacturing their own hardware (excluding the RSX).Right?
I still think MS will have a better production cost / sales cost ratio, but Sony can and probably does feel secure in higher sales of PS3\'s and software. Sony is using its console gamning muscle to build a machine with what appears to be more advanced technologies. In the end Sony\'s profits from their SCE division will probably be larger then that of MS Xbox division even larger intial losses on hardware.
I am not absolute with my opinion.I am not saying that it will hurt Sony without any gain at all in the long run.What I am saying is that it has more impact on Sony than it does to MS.
MS can take the losses more than Sony can.
Not that you are wrong.You are right.
Sony hopes that in the long run they will be able to make profits.
Its just that they lose flexibility in decision making.Competition is tighter for them this time around.
Its all specualtion on my part just the same, but I just don\'t see Sony being worried about the hardware sales, or profitting. They know they are going to profit. Maybe the the model is tighter based upon increased competition, but Sony knows where it stands in terms of market share and what they will need to do to hit targets.
MS doesn\'t know for sure what its market share is. IMO MS has more to worry about in regards to XBox 360 and being able to generate profits. Even with this uncertainty I feel MS knows it will still profit from the hardware of XBox360 before all is said and done.
the only thing we need to appreciate is how the strong competition has really pushed the console gaming industry forward.
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Originally posted by ddaryl
How do you figure Sony is more worried about profits then MS ???? Sony more then likely will sell considerably more PS3\'s then MS will sell XBox 360\'s, which also means more games and more periphials and more developers which means more liscensing etc... Sony may take a bigger hit but in the end they\'ll probably profit more, and continue there dominant market share. I\'m sure Sony has figured hardware losses into their equation based upon their projected market share. There is always some gamble that they may lose their market share, but IMO its Sony\'s market to lose.
Well I didnt say they wont profit.I am only saying that now they are puting theirseles in a tighter decision.
I still think MS will have a better production cost / sales cost ratio, but Sony can and probably does feel secure in higher sales of PS3\'s and software. Sony is using its console gamning muscle to build a machine with what appears to be more advanced technologies. In the end Sony\'s profits from their SCE division will probably be larger then that of MS Xbox division even larger intial losses on hardware.
Cant agree or disagree.
Its all specualtion on my part just the same, but I just don\'t see Sony being worried about the hardware sales, or profitting. They know they are going to profit. Maybe the the model is tighter based upon increased competition, but Sony knows where it stands in terms of market share and what they will need to do to hit targets.
I see no reason why Sony should worry about sales either.I am only refering to Sony forcing theirselves into less flexibility.
I cant comment on how much Sony will make.
But the sure thing is that if MS was planning for a higher price Sony would have targeted a price around as high as the competitor\'s.Not the $300 price.And they would have been in a better position for price decision making relative to both cost and competition.
MS doesn\'t know for sure what its market share is. IMO MS has more to worry about in regards to XBox 360 and being able to generate profits. Even with this uncertainty I feel MS knows it will still profit from the hardware of XBox360 before all is said and done.
True that.
the only thing we need to appreciate is how the strong competition has really pushed the console gaming industry forward.
yep
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[size=20]LOL, NOW THERE\'S SOMETHING TO BE THANKFUL FOR!~111[/size]
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see what happens when there\'s competition? yo, i like sony and all but if ms wasn\'t in there i guarantee they would have set the ps3 at a higher price,..*well the price for the ps3 hasn\'t been stated yet, at this point 299 sounds about right*...now who\'s gonna be the competition for EA?...:(
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...now who\'s gonna be the competition for EA?...
I dunno...but I wish there was some competition.
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Sony will launch at around $300 - $350. Every company with any common sense knows that the last generation console price is the so called \'sweet-spot\'. Anything else and you risk people simply buying a different console due to a cheaper price.