Discussion in 'PS3 - Modding & Hacking' started by Edgewise, Jan 31, 2007.
Took from www.psxextreme.com
Sony has three major problems in regard to the PS3
1: cannot produce enough systems for demand worldwide
2: not selling HW as fast when they get to the stores
3: game sales are not as good as expected
It's no secret that retailers want the systems that sell the fastest. Because they need to sell games. Games = $$$profit
That is where the real money is made, on game sales. A typical retailer like Target/Walmart might only make 5-10% profit on the sale of the HW. But on games, it makes 100% profit. If the game is selling for $60 they actually paid $30 to the distributor. Minus their cost to get it to the store, they have a huge profit on game sales. Don't quote me on accurate percentages but anyone in retail will tell you that game sales = $$$$.
Sony needs to fix #1 on their own; HW/SW sales will not effect how fast they can produce systems. #2 can be fixed by a price cut, but not much. There has to be demand for a system for it to sell. Unfortunately, demand for the Wii is much higher than PS3. Not because of the price tag. Nintendo also has incredible factory resources & if Sony battled them on price they'd just bump production up. The PS3 cost much more to make then the Wii. Nintendo could financially wound Sony for many years if they cut the HW price and then Nintendo responded by cutting their own price. Nintendo also has deep 1st party resources; they could increase the license fees to developers for a short while to recoup the price cut & not have to worry about losing games.
Sony has themself cornered on #1 & #2. The gamers (that's us) decide how #3 will go. Just because we own the HW doesn't mean we have to buy the SW that goes with it.
Expect Final Fantasy XIII & Metal Gear Solid 4 to boost game sales way up. But that's still atleast 7-8 months from now.
What will Sony do in the meantime?
Nintendo has 3-4 A+ titles coming out before Summer from 1st party & SquareEnix/EA/Ubisoft have another 4-5 games. That's not counting Konami/Capcom/Namco or any of the other companies.
Other than Sega (Virtua Fighter 5) and EA, I think Sony is SOL on game sales until atleast Summer 2007. If any of them were to be delayed...
I hope sony holds off on the price cut for a bit until the manufacturing cost of the ps3 goes down, because it seems like the price cut is an act of desparation and I dont want to see sony dig their own grave.
i think that they should go ahead with this. Sony has enough money, they aren't in trouble and couldn't be in trouble, i mean, it's sony. They are raking in loads of money from all the other things they make. I think a price cut would not only set the ps3 winning the war in stone but would also help Blu-ray win it's war, even tho i personally think the ps3 is worth it's current price but thats besides the point.
Well, the better cut the price now. It's a very simple, yet vital strategy to not even mention a price cut until the day the price drops. Stupid move by Sony, they've killed any hope of stronger sales until the price cut.
Bring out more/better games. $ony could always decrease the license cost to developers for a short time & then cut the console price once enough games are being sold. Remember, no games = no reason to buy a system
The race to 65nm Cell (already confirmed btw)
this could mean good news for both systems for sooner price cuts
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