Yet they refuse to drop prices on the PS3.
[GI] Sony freezes staff wages
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They are cutting costs... dropping prices is likely to lose them money.
Originally Posted by Marin Yet they refuse to drop prices on the PS3. |
They are cutting costs... dropping prices is likely to lose them money.
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I was about to say the same thing. I don't see how slashing prices is going to help them.
Originally Posted by Coma ??? They are cutting costs... dropping prices is likely to lose them money. |
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Simple, they make the bulk of their video game money not on the consoles, but on games/accessories. If they dropped the price and sold more units, these people would go out and buy games/accessories.
Originally Posted by Coma ??? They are cutting costs... dropping prices is likely to lose them money. |
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Originally Posted by serialtoon I was about to say the same thing. I don't see how slashing prices is going to help them. |
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I'm pretty sure their marketing departments have estimated the price elasticity of demand, if it were feasible, it would have been done.
Originally Posted by ljason8eg Simple, they make the bulk of their video game money not on the consoles, but on games/accessories. If they dropped the price and sold more units, these people would go out and buy games/accessories. |
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Then why do I hear so many people saying "well if the PS3 was cheaper I'd get one" all the time?
Originally Posted by alex98uk I'm pretty sure their marketing departments have estimated the price elasticity of demand, if it were feasible, it would have been done. |
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They are ALREADY taking a loss on every PS3 sale, there is only so much loss you can take before game sales won't make up for it!
Originally Posted by ljason8eg Then why do I hear so many people saying "well if the PS3 was cheaper I'd get one" all the time? |
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I'm well aware of that. I don't think you realize how much profit they make on games/accessories.
Originally Posted by bruestle2 They are ALREADY taking a loss on every PS3 sale, there is only so much loss you can take before game sales won't make up for it! |
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Sony already losses money on every console sold. By our logic they should be selling them for 0$ to promote sales.
Marketing departments exist for a reason, they can calculate the average amount of games sold per console sold. If they can't make back the revenue lost from selling the console at a loss from those X amount of games then they lose money overall.
If they cut say 100$ off each console, that means they would in turn need to make 100$ more profit from people buying games for their new console. The thing is, people aren't buying enough games to make back that kind of loss. Sony is not even breaking even as it is.
Originally Posted by ljason8eg Then why do I hear so many people saying "well if the PS3 was cheaper I'd get one" all the time? |
Marketing departments exist for a reason, they can calculate the average amount of games sold per console sold. If they can't make back the revenue lost from selling the console at a loss from those X amount of games then they lose money overall.
If they cut say 100$ off each console, that means they would in turn need to make 100$ more profit from people buying games for their new console. The thing is, people aren't buying enough games to make back that kind of loss. Sony is not even breaking even as it is.
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Ha. Your stupidity entertains me
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Originally Posted by ljason8eg Well if that's the case then sony needs a new marketing dept. |
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I fail to see how I'm stupid. I'm entitled to my opinion of things, like it or not. Why are they in last place if they have a good marketing team. I mean look at Apple, priced more than the competition for the same, or even LESS performance, but their marketing team makes it sound like the best thing ever, so people buy it.
Well they're in last place, so they're doing something wrong, yet they haven't really done anything about it. I've had a PS3 since launch, before I knew anything about PC gaming, and it disappointing to see it slipping farther and farther behind. I remember when the first price drop happened, sales increased like crazy. Maybe it's time for another.
Originally Posted by alex98uk Ha. Your stupidity entertains me
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Well they're in last place, so they're doing something wrong, yet they haven't really done anything about it. I've had a PS3 since launch, before I knew anything about PC gaming, and it disappointing to see it slipping farther and farther behind. I remember when the first price drop happened, sales increased like crazy. Maybe it's time for another.
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Can you post some more? I love laughing at ignorant BS.
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qft.
Originally Posted by ljason8eg Well if that's the case then sony needs a new marketing dept. |
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Originally Posted by elmikethemike i love how this forum acts like sony is the only technology company that's affected by the recession. |
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They could've just added wi-fi, battery packs and a HD disc player as add-ons and made a load of money, but they decided to stick it all into one.
PS3's are going for £250 on e-bay, brand new. Everyone should shut up about a price cut.
Originally Posted by ljason8eg Simple, they make the bulk of their video game money not on the consoles, but on games/accessories. If they dropped the price and sold more units, these people would go out and buy games/accessories. |
PS3's are going for £250 on e-bay, brand new. Everyone should shut up about a price cut.
cant believe this , Today on 20/03/08 our college was visited by Sony for recruitments , its an engineering college 
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The something they did wrong was the design of the console. They can't change it without losing the ability to play games, and we're still 3 years from the next generation.
Without the recession Sony might have been doing better, but the recession happened. Sony is stuck with their Escalade in a world where everyone wants a Prius(or a moped *cough*nintendo*cough*).
Sony has already lost this generation. Their reluctance to drop the price and cost cutting measures like this tell me they are in damage control mode now. We might even see the PS4 sooner than Sony planned.
Originally Posted by ljason8eg Well they're in last place, so they're doing something wrong, yet they haven't really done anything about it. I've had a PS3 since launch, before I knew anything about PC gaming, and it disappointing to see it slipping farther and farther behind. I remember when the first price drop happened, sales increased like crazy. Maybe it's time for another. |
Without the recession Sony might have been doing better, but the recession happened. Sony is stuck with their Escalade in a world where everyone wants a Prius(or a moped *cough*nintendo*cough*).
Sony has already lost this generation. Their reluctance to drop the price and cost cutting measures like this tell me they are in damage control mode now. We might even see the PS4 sooner than Sony planned.
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