Originally posted by QuDDus
I think $900 would be considered price of production. That is what I am t hinking. If that was the price of the console they wouldn\'t sell very many units. And seeing that $900 is the price of production how big of a hit is sony willing to take on each unit?
If I remember well PS2 initially costed around $750 to produce.And despite the great sales Sony suffered huge losses for a few months until economies of scale took effect
It will take longer for them to recover now.Especially when we consider that this time around they are facing a greater competitor
ps3 has to retail for $399.99. Sony is going to have to take a huge hit on each console. You know microsoft will be trying to lower the price of 360 buy the time ps3 starts to launch. [/B]
Damn right and that was one of my initial concerns.
Things could look like Sega vs Sony.Back then Sony could reduce PS1\'s price without any problems.Sega was forced to reduce Saturn\'s price to remain competitive despite that this was hitting them badly financially.
XBOX360 I estimate it costing around $250 if the PS3 is released around July.If the release it November or even worse in 2007 they will have to compete with an even cheaper console that will be half the price of the PS3.And not only that XBOX360 will be entering its second generation of games.
If they do reduce the price too soon they will generate bigger losses that will be harder to recover from.
Keep selling the PS3 at high price and they wont be competitive.
Its a double edged sword
Only if PS3 demand is extremely and extensively high and inelastic and people are buying 2 or more games per console minimum, Sony will recover fast with minor problems to face.
If that will be the case I dont know