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[G3D] Sony PS4 production cost estimated at $381 - Page 3

post #21 of 28
Quote:
Originally Posted by MoGTy View Post

Wait it makes more sense if I said I'd buy it AND want it to be priced higher ? Ofcourse not.

I wouldn't mind if it was more expensive because I won't buy it. That makes perfect sense.

If I said I won't buy it and I wouldn't mind it being priced lower, that would've been perfectly cool too.

Simply because I'm not buying, I'm not allowed to have a say on the price ?

Why it should be higher in my opinion is an other subject. I think they could have asked more, looking at the better gaming experience compared to Xbox One.

Lets be totally honest here, you don't know that it provides a better gaming experience than Xbox One. Xbox One definitely has the more interesting launch titles/exclusives right now.

As far as the pricing stuff goes it is a little face palm'y because duh, if you are not buying on you don't really care if it is more expensive. There is something called a supply and demand curve and the higher the price the less people buy your product. So Sony goes as low as they can in order to build up the install base.

You are entitled to talk about the price, just as I am entitled to respond to your talking about the price. Have at it!
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post #22 of 28
Quote:
Originally Posted by maarten12100 View Post

Well you're correct but saying you don't care about how high it is priced is a bit painful to those that will actually buy a console

Sure I can agree to that, but I wouldn't mind if Sony earned a little more on the actual sales of their PS4 since it seems to be such a nice product in the reviews.
Quote:
Originally Posted by Mygaffer View Post

Lets be totally honest here, you don't know that it provides a better gaming experience than Xbox One. Xbox One definitely has the more interesting launch titles/exclusives right now.

As far as the pricing stuff goes it is a little face palm'y because duh, if you are not buying on you don't really care if it is more expensive. There is something called a supply and demand curve and the higher the price the less people buy your product. So Sony goes as low as they can in order to build up the install base.

You are entitled to talk about the price, just as I am entitled to respond to your talking about the price. Have at it!

Sure, I agree, better titles, worse quality in-game from what I've read in reviews.

I know about supply and demand, thank you.

I never limited your free speech, not sure what I'm supposed to "have at it"
Edited by MoGTy - 11/21/13 at 12:27pm
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post #23 of 28
Quote:
Originally Posted by Skillers Inc View Post

M$ is not in the business of losing money.

You could argue that they are- the Xbox division, as a whole, including games, has likely never made a dime. But that's OK to them because it helps drive mindshare and keep Microsoft products throughout the home.

Time of flight cameras are NOT CHEAP, though- they require high power, high frequency devices and the filters to tame their emissions, a metric buttload of LEDS, and some sophisticated ASICs. I'd be really surprised if they could build the Kinect 2 for as little as $100.
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post #24 of 28
Quote:
Originally Posted by MoGTy View Post

Sure I can agree to that, but I wouldn't mind if Sony earned a little more on the actual sales of their PS4 since it seems to be such a nice product in the reviews.
Sure, I agree, better titles, worse quality in-game from what I've read in reviews.

I know about supply and demand, thank you.

I never limited your free speech, not sure what I'm supposed to "have at it"

I never said you limited my speech, you implied that I was limiting yours, you said "Simply because I'm not buying, I'm not allowed to have a say on the price?" and I responded you were free to comment as much as I am free to respond. Just a bit of pointless semantics.

While I will not be buying either console, as I game only on PC these days, I do think the PS4 has the better hardware and will have the better looking and more importantly better performing (FPS) games throughout its life.

When it comes to pricing I think I am just more pragmatic than you. I don't really care that Sony gets more or less per console, if I was personally invested in their games or platform I might care how much money they were making overall, but as I have said previously they don't make their money on the consoles, at least not until later in the consoles life when they become cheaper to make. They make their money on the software, i.e. games. Thus the cheaper Sony can afford to sell the PS4 the better for their bottom line down he road.
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post #25 of 28
Quote:
Originally Posted by Skillers Inc View Post

M$ is not in the business of losing money.

The Surface line says differently tongue.gif

It's just like Ramen Noodles and Bananas. Grocery stores sell them at a loss thinking you'd go to that store for the specific product, then probably pick up a few items here and there at the checkout lanes.
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post #26 of 28
Interesting.

It appears they almost nearly employing a loss leader stratergy.

Very smart on there part. At $400 these consoles are affordable so many people will buy them. They then can rake in the money from near zero cost services such as PS+ and licensing for games.

Probably a good time to invest in Sony actually, apart from them hemorrhaging in every other department.
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post #27 of 28
That article is not nearly detailed enough to make any sort of conclusions based on it. How did they account for overhead? They can't tell you what the actual overhead is without knowing the # of units sold, and I don't trust their budgeting one bit.
Or what about the sunk costs? When they say they factor in R&D... how? Did they take the R&D costs and amortized them over the expected life of PS4? What is that expected life? If they amortized it over 3 years, and PS4 lasts 10 years like its predecessor, then their per unit costs are incorrect.

What you kind of know is the variable costs:
APU - 100
Drive - 28
HD - 37
Mem - 88
----
$253

If you take their word that manufacturing cost is $9, and lets say... they another $50 on casing, mobo, wires.. blah blah, that gives you an approximate total of ~$312. This means that they assign around $60 worth of overhead (r&d, customer support, advertising, finance department's salaries, etc) to each unit. Does that figure make sense? You can argue both ways.
    
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post #28 of 28
Quote:
Originally Posted by 47 Knucklehead View Post

Actually, by all accounts, Microsoft lost billions on it. But that is another story.

Consoles has never been about making money on the hardware. Their plan has always been to make the money on games and services, which is why they have pushed so hard to end "used games", and are pushing all the online, subscription, junk.

They are basically drug dealers ... give away the hardware and a game to get you hooked, then make their money on repeat business.

Nail on the head.
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