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Sony to sell PlayStation Vita for a loss, Profitable within 3yrs

O

onQ123

Member
http://www.examiner.com/video-game-...l-playstation-vita-for-a-loss-profitable-3yrs

Sony’s PlayStation Vita is making headlines worldwide due to the system’s visual prowess and impressive lineup of launch titles. Cramming so much horsepower into this little package was certainly a costly investment for Sony, but the company shocked the world when they revealed that the Vita will retail for $249.99 (Wifi only)/$299.99(3G/Wifi AT&T Service Contract Required) for North America. This cheap price will come at a cost for Sony, however.

In an interview with Reuters Japan, Sony’s Kaz Hirai stated that Sony aims to make a profit on the PlayStation Vita in three years. Sony often sells their hardware at a lost, so this isn’t anything new for the company as they sold the PlayStation at a lost despite the $600 price tag. Out of the three home-console manufacturers, Nintendo is usually the only company to make a profit on hardware right away due to their conservative nature of building their hardware.



Continue reading on Examiner.com Sony to sell PlayStation Vita for a loss, Profitable in 3yrs - National Video Game | Examiner.com http://www.examiner.com/video-game-...vita-for-a-loss-profitable-3yrs#ixzz1OegqmcOC
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B

BocoDragon

or, How I Learned to Stop Worrying and Realize This Assgrab is Delicious
Was the first PSP sold at a loss? I know Nintendo's handhelds probably weren't.
 
LiquidMetal14

LiquidMetal14

hide your water-based mammals
Jeels said:
This is contradictory to what has been said time and time again.
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Except we really won't know until the HW breakdown. It's definitely not cheap looking nor are the specs low class.
 
D

Deleted member 80556

Unconfirmed Member
beast786 said:
Then PS4 in 3 years.
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You're saying that Sony will have the balls to give Nintendo a 2 year headstart in the next-gen sales 'race'?

Jamesfrom818 said:
Will Sony be around in 3 years?
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Will Apple, Nintendo or Microsoft be around in 3 years?
 
D

Deleted member 8095

Unconfirmed Member
Has the pricing for games been announced yet?
 
Hawk269

Hawk269

Member
Well companies usually sell at a lost and make it up via software sales, software royalties. But that only works if the thing sells like a bat out of hell. Yes, the blow money on selling it at a lost, but when they sell a ton of units they make it up in other areas.

But as amazing as the price is, a handheld for $250? The 3DS is selling like shit becuase of the price point and they had a pretty good launch lineup.
 
J

Jeels

Member
Juan29.zapata said:
You're saying that Sony will have the balls to give Nintendo a 2 year headstart in the next-gen sales 'race'?
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The Wii U is basically going to get 360/PS3 level games. There's no need to try and compete with it.
 
K

KingDizzi

Banned
Shame, Sony should sell it at a price which would make it profitable in 10 years. I don't care about how these companies do however I do care about GT games selling well and even then I don't know why I care with their recent games being bleh. :/

WinoMcCougarstein said:
Has the pricing for games been announced yet?
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No but logic says $50.

Mama Robotnik said:
From a gamer's standpoint it seems to be a bargain, so that's nice.

But from a business standpoint, after the financial bomb that was the PS3, I'm amazed they're daft enough to risk this loss-leading shit all over again. Do their shareholders have any sense?
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Well look at the business model. Sony want their handheld in your home, money is made on the software and other bits. Also the tech in the Vita is not exotic which PS3 was so they will drop is price quicker. Lastly with PS3 even at £425 they were losing a LOT, can't be that big a margin here.
 
M

Mama Robotnik

Member
From a gamer's standpoint it seems to be a bargain, so that's nice. LBP and Modnation racers sold it to me I think.

But from a business industry standpoint, after the financial bomb that was the PS3, I'm amazed they're daft enough to risk this loss-leading shit all over again. Do their shareholders have any sense?
 
E

Einbroch

Banned
Hawk269 said:
Well companies usually sell at a lost and make it up via software sales, software royalties. But that only works if the thing sells like a bat out of hell. Yes, the blow money on selling it at a lost, but when they sell a ton of units they make it up in other areas.

But as amazing as the price is, a handheld for $250? The 3DS is selling like shit becuase of the price point and they had a pretty good launch lineup.
Click to expand...
Er...what? Even Nintendo themselves have said that they're disappointed with the launch and a big part of it was the lukewarm launch lineup.
 
B

beast786

Member
Juan29.zapata said:
You're saying that Sony will have the balls to give Nintendo a 2 year headstart in the next-gen sales 'race'?
Click to expand...

According to 3rd party and Sony. It is NOT a head start. But in fact , Nintendo will finally join THIS GEN .
 
F

Fou-Lu

Member
Is Sony run by a five year old? I love that I can get a Vita for $250, but are they TRYING to kill the company?
 
G

Guevara

Member
This is a pretty amazing piece of hardware, still I thought the whole point was that by using "off the shelf" components the Vita's production costs would plummet quickly?
 
A

Afrodium

Banned
Of course it's being sold at a loss. There's no way that they are making money selling it that cheap, but it could be key for them to get a foothold in the handheld market. However, within the next three years they'll probably start selling the PS4, and that will most likely be sold at a loss. How will they avoid the poorhouse?
 
M

Master Milk

Member
Ichor said:
Is Sony run by a five year old? I love that I can get a Vita for $250, but are they TRYING to kill the company?
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Sony's not going to die just because they lose money making video game hardware. This isn't their main business.
 
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