• Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.

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

viciouskillersquirrel said:
Three years? That's twelve quarters with no room for a price drop if sales tank. This is good for the consumer, but as time goes on, I find myself asking "Just who in the hell is running this company??"
Price to build will fall with time. The 3 years most likely has that and price drops built into it.
 

TheOddOne

Member
SolidSnakex said:
Way too many people think that since they read financial reports that they have a full grasp of how a company can and can't operate. Brian Crecente mentioned that he talked to Sony before E3 and they told him that they set a price for the Vita and then built it to that price. So this has been their plan for years.
But the source is Kaz and when he's honoust he's honoust.
 

bummyhead

Member

Vic

Please help me with my bad english
Wonder how long it took for the PSP to become profitable.

Sony: "In Monster Hunter we trust".
 

Parch

Member
Risky? Perhaps. PSP price was that system's failure, but this time they're intent on stealing away a much bigger share of the handheld market. Vita provides much more value compared to the 3DS at equal price.

This time the 3DS is the fail unless they dramatically drop the price soon.
 

alr1ght

bish gets all the credit :)
bummyhead said:
Which proves that Sony doesn't know how to build reasonable hardware. I wonder how many people are gonna shell out for a Vita version of a game when a better PS3 version can be had? Let's face it, it's entirely unlikley the Vita will get any system selling exclusives.

Sony subscribes the the Tim Taylor school of console design. "More Power, ar ar ar ar ar"
tell me more
 
bummyhead said:
Which proves that Sony doesn't know how to build reasonable hardware. I wonder how many people are gonna shell out for a Vita version of a game when a better PS3 version can be had? Let's face it, it's entirely unlikley the Vita will get any system selling exclusives.

Sony subscribes the the Tim Taylor school of console design. "More Power, ar ar ar ar ar"

lol
 
bummyhead said:
Let's face it, it's entirely unlikley the Vita will get any system selling exclusives.


gd2r738.png


Gravity says hello.
 
Seventh said:
I wonder how much of a loss they're taking at launch. Three years to make a profit seems... unwise. That seems like a fairly long time, and you never know what may happen that will delay any potential profits. I'm surprised they're willing to lose money on it for so long after what happened with the PS3.

And just to clarify, does anyone know if Sony is only talking about the hardware? Or are they including all the games and accessories in their estimate when talking about making a profit? I assume it's the former, but I'm not sure.

maybe they're trying to keep the price competitive and down to mainstream price as fast as possible through that 3 years. so let's say they take small loss during launch, first chance they succeed to reduce the manufacturing cost, they'll reduce the retail price of Vita too and keep taking losses instead of try to make profit. hopefully in 3 years, they've finally settle to mainstream prices, make a small profit for it, and already have big user base. 3 years seems like a long time, but we can assume Vita will last longer than 5 or 6 years.
 

KingDizzi

Banned
SolidSnakex said:
I'm talking about the people that seem to think that Sony can't do this.

This is Gaf, we're just here to have a laugh and you should not take what people say seriously, why give a fuck? Most people here don't know how to run a business, it's why they will always come on GAF and give business advice 10 minutes before their shift to flip burgers at Maccy D's. Not saying there's anything wrong with that, someone needs to make my McFlurry but yeah don't forget where you are.

I wuv u GAF, :D
 
Mama Robotnik said:
That's a really good point.

Not only are they gambling that the device is a sales success, they're gambling that it won't be hacked by pirates.

Considering they just made themselves public enemy number one with many of the hackers on the planet, its a hell of a risk.

That's pretty much what I'm thinking. But I guess the good news is that even PSP wasn't hacked right away, it took some time. So if they can stave off getting broken for 2 or 3 years then suddenly they are already making profit on each unit sold. ( I wonder if this prediction of profitability includes planned price drops or not? )
 

lowrider007

Licorice-flavoured booze?
Mama Robotnik said:
That's a really good point.

Not only are they gambling that the device is a sales success, they're gambling that it won't be hacked by pirates.

Considering they just made themselves public enemy number one with many of the hackers on the planet, its a hell of a risk.

If PSVita was to become hacked I really don't foresee it being as detrimental to the system as it was with the PSP, I think if the PSVita can sell ok out of the gate and keep up a respectable momentum in sales I think third party support with be much stronger this time around, also being that this systems online features will be much more important to people that will also help.
 
D

Deleted member 8095

Unconfirmed Member
outunderthestars said:
http://www.abload.de/img/gd2r738.png[IMG]

Gravity says hello.[/QUOTE]

Yeah, probably not. UC will be more of a system seller than whatever that game is. I have a feeling we will see some more "system sellers" before the system is released.
 
demosthenes said:
Price to build will fall with time. The 3 years most likely has that and price drops built into it.
Again, I say - no room to manouever if sales tank. Price drops that are planned years ahead of time usually make a bunch of assumptions regarding the product life cycle, which can often be wrong.
 
I really don't want Sony to ever stop doing their thing. Make me awesome hardware, and then support it by creating unique 1st/2nd person studio created games.

If I owned a 3DS I'd be pissed off right now that it certainly looks like Nintendo gouged the fuck out of the price of the hardware.

Then again Nintendo sells N64 games for $40 and gameboy color roms for $6.....
 
I've been reading this thread and honestly, I am more concerned with the desire to use this as a web-browser, game machine for at night laying in bed. Any news on the quality of the web-browser? Or OLED's ability to display text.

On topic though, Sony makes amazing hardware, and saying they sell it at a loss should only increase the consumer's demand for it.
 

BorkBork

The Legend of BorkBork: BorkBorkity Borking
Jesus Sony. Three years?! Pretty risky gamble if the piracy problems of the PSP are repeated.
 
Good for consumers but whether or not they want to pay that price for ANY handheld is the big question, no matter the tech. Saying stuff like 'you're getting alot for the price' don't really jive as well as a 'good enough' tech at a lower price.

They are in a tough position though. The gaming division is already bleeding all kinds of red, and with the PS4 yet to launch, you will have two loss leaders for the foreseeable future.
 
Why are some of you so worried about Sony selling this for a loss? You honestly think this piece of hardware is going to make or break the company? Sony is a global corporation that has had its share of successes and failures in history. They are not betting the farm on this handheld.

Seriously guys, you bitch if they price hardware too high, and when they finally make something affordable, we find a way to complain about that too.
 
scorpscarx said:
I've been reading this thread and honestly, I am more concerned with the desire to use this as a web-browser, game machine for at night laying in bed. Any news on the quality of the web-browser? Or OLED's ability to display text.

On topic though, Sony makes amazing hardware, and saying they sell it at a loss should only increase the consumer's demand for it.

OLED for web browsing Gaf (white background) on 3G connection is gonna suck that battery down pretty quick.
 

Bad_Boy

time to take my meds
im ok with 50 dollar games. i was expecting as much. and im sure there will be cheaper psn games.

rather have 45 dollar games though, please sony
 
Any loss will most likely be made up by the purchase of an over priced memory card.

And they won't take a loss on the 3g sku, due to it being subsidized by AT&T contracts.
 

Instro

Member
Wonder how big a loss they are taking, surely it cant be that big if they are willing to stick it out for 3 years.
 

X26

Banned
bummyhead said:
Which proves that Sony doesn't know how to build reasonable hardware. I wonder how many people are gonna shell out for a Vita version of a game when a better PS3 version can be had? Let's face it, it's entirely unlikley the Vita will get any system selling exclusives.

Sony subscribes the the Tim Taylor school of console design. "More Power, ar ar ar ar ar"

I love nintendo fan meltdowns
 

darkwing

Member
Justin_Bailey said:
Why are some of you so worried about Sony selling this for a loss? You honestly think this piece of hardware is going to make or break the company? Sony is a global corporation that has had its share of successes and failures in history. They are not betting the farm on this handheld.

Seriously guys, you bitch if they price hardware too high, and when they finally make something affordable, we find a way to complain about that too.
Gaf is never happy
 
Justin_Bailey said:
Why are some of you so worried about Sony selling this for a loss? You honestly think this piece of hardware is going to make or break the company? Sony is a global corporation that has had its share of successes and failures in history. They are not betting the farm on this handheld.

Seriously guys, you bitch if they price hardware too high, and when they finally make something affordable, we find a way to complain about that too.

are we complaining? I think we're just concerned. I love Sony for making this dream hand held device, but I do want them to succeed so they can keep doing stuff like this. how would you feel if after Vita and PS3 less than stellar success, Sony decide to make PS4 just marginally better than PS3? considering that my interest is in this powerful device.
 
Wasn't it obvious that they were selling it a loss when they announced it at $250? Nintendo is making profit off the 3DS, and I'm sure they'll sell a lot more of systems with the upcoming games.
 
googleplex said:
Any loss will most likely be made up by the purchase of an over priced memory card.

And they won't take a loss on the 3g sku, due to it being subsidized by AT&T contracts.


The 3g unit isn't subsidized. That said I imagine Sony will get a percentage of the montly service fees.

$50 is the cost of the 3g radio chip.
 

NeoCross

Member
bummyhead said:
Which proves that Sony doesn't know how to build reasonable hardware. I wonder how many people are gonna shell out for a Vita version of a game when a better PS3 version can be had? Let's face it, it's entirely unlikley the Vita will get any system selling exclusives.

Sony subscribes the the Tim Taylor school of console design. "More Power, ar ar ar ar ar"
It also shows how Nintendo doesn't know how to reasonably price their hardware.

I mean $250 for a 3DS. Seriously?
 

Jomjom

Banned
Very pro-consumer move. Makes you wish Nintendo would do that once in a while. It's not like they are hurting for cash in their coffers.
 
Top Bottom