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Sony CEO dismisses price cut chatter on PlayStation
helava says,
Stringer whines that if he cut the price of the Playstation, he'd lose money on every unit sold. Know what? That's the loss-leader model. That's how you've chosen to do business.
Sony chose to incorporate Blu-Ray into the PS3, because they wanted to dominate the home theater media war. They spent massive, massive amounts of money pushing Blu-Ray and killing HD-DVD because if Blu-Ray wins, Playstation wins.
Well, what worked for the PS2 didn't work for the PS3, because Blu-Ray's being torn to pieces by Netflix, and when it comes to gaming, the PS3 simply can't justify the cost difference from the 360, which didn't have to deal with expensive blue laser diodes.
So, you can tell people to stop whining, Sir Stringer, but the simple fact of the matter is that the choice is yours - you can either drop the price to be competitive, or you can watch as third parties leave your platform in droves.
We'll see who's whining, then.
Article excerpt from reuters.com —
"SUN VALLEY, Idaho, July 7 - Sony Corp Chief Executive Howard Stringer brushed off concerns that the PlayStation 3 video game console is too expensive, and said the company is unlikely to sell parts of its business amid the recession.
Stringer, arriving at the Allen & Co conference in Sun Valley, Idaho, on Tuesday, described recent comments...
Read the full article at reuters.com »
Read the full article at reuters.com »
Posted 2 years ago
...If they lowered the cost, they would lose money on every unit they sell? Sounds like total BS to me, they would not make the Billions they expect to fleece from all of the GAMERS... This is why I haven't purchased any gaming system since PS One, which I purchased USED. My last NEW system was the NINTENDO GAMECUBE (I purchased a PSP from a pawnshop for half the money).
Posted 2 years ago
sony does lose money for every console it sells. so does microsoft too. but they make their money from games people buy. only console that makes a profit on their console is nintendo wii. sony does need to drop their prices so more ppl who cant afford ps3 can buy one. and about blue ray. not worth buying ps3 just for blue ray player if you dont have hdtv.
Anonymous
Posted 2 years ago
Ps3 needs to be 300-350. Ps3 does have advantages over other systems just for the simple fact their disk can hold way more data on them. Can you imagine how much more massive GTA would be if they didn't have to keep it around 4GB for 360 to fit on a dvd. PS3 would still be #1 if it wasn't so damn expensive.
Posted 2 years ago
ldgrey1963 said:
bleedingeyes is right - Sony already loses money, as does Microsoft. The Wii is the only console sold at a profit. The PS3 loses more money than either of its competitors because the Blu-Ray technology was really new at the time it was launched. But Sony's just put itself in a bad spot - either they continue to lose even more, or they fall further and further behind...
Posted 2 years ago
Sounds like a bail-out business model... someone sells a product at a loss to make up the loss in selling the games? won't be buying stock in this type of selling tactic...
Posted 2 years ago
ldgrey1963 said:
That's funny - because the Wii is, if my recollection is correct, the first console *ever* to be sold at a profit from day one. Ever since the late '70's, consoles have been loss-leaders. That's just how it was done, and it's been massively, massively profitable for those who have succeeded.
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