• 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

Phonomezer said:
Yeah but they can make up for it with software sales - the PSP's weakest point.

The psp has sold almost 300 million piece of software. At roughly $5 per game in royalties, that is over a billion dollars of royalty money alone....
 
Bad_Boy said:
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

You are ok with a lot of things you shouldn't be ok with, $50 games means this thing is DOA, $35 at most. Here's to hoping you are wrong again.
 
outunderthestars said:
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.
Wait....isn't that what subsidized means?
 

Delio

Member
Would people really be ok with 50 dollar games for the Vita? Well anyways this news i just hope this doesnt bite them in the ass in any way.
 
googleplex said:
Wait....isn't that what subsidized means?

subsidized would be if AT&T sold the 3g Vita for $100 but made you sign a two year contract for data. They subsidize the price of the hardware, and make it up over time.

That is why you cannot buy an iphone for $200 without a contract, yet you can buy an ipad without one. the iphone is subsidized, whereas the ipad and vita are not.
 

kenta

Has no PEINS
I kind of wish Sony wouldn't operate like this. I'm okay with waiting a little longer and getting a better product as a result of developers/R&D staff feeling like they could take their time and get it right

As it stands we'll get a neat device with freaking bubbles on the UI. But it's okay because they're taking a loss on it
 
Delio said:
Would people really be ok with 50 dollar games for the Vita? Well anyways this news i just hope this doesnt bite them in the ass in any way.

I'll pay $50 for Uncharted before I pay $40 for a N64 port like Starfox/Zelda
 

freddy

Banned
You gotta do this if you're in second place and want to be first. Anything short of this goal will be hard to justify to shareholders though. Heads are on the line.
 

Delio

Member
outunderthestars said:
I'll pay $50 for Uncharted before I pay $40 for a N64 port like Starfox/Zelda

Is it wrong that i'd pay $40 for Starfox that i acutally like before $50 for Uncharted?
 

apana

Member
Wow guys relax. Just cause one company likes to sell hardware at an initial loss doesn't mean they are complete idiots and just cause another company likes to make a profit initially doesn't mean they are greedy bastards. Some of you need to get a few screws tightened.
 

Kintaco

Member
How can Sony sustain such a model now a days? It's not like they are coming off a stellar cycle like the PS2's. If they plan on Vita being profitable in 3 years when the hell do they plan on launching the PS4? I can only assume they will again take the same approach when they launch the PS4. I mean does Sony ever plan to be profitable?
 

Faxanadu

Member
I'm trying to understand the hypocricy here I see from some people...

$250 is a fair price when the company loses money but bad when the company profits?
And $40 is too much for portable games on 3DS but $50 is good on Vita?

Love what you love, buy what you want, but stop being ridiculous.

"History will teach us nothing."
 
Does that mean they will turn a profit on the whole venture or one each unit sold?

Because turning a profit on the venture would include start up costs and R&D which are at 4 - 800 million based on their R&D reports.

I imagine they'll be selling at a loss but it won't take too long for them to be making a profit on each unit sold.
 

Bad_Boy

time to take my meds
babyghost853 said:
You are ok with a lot of things you shouldn't be ok with, $50 games means this thing is DOA, $35 at most. Here's to hoping you are wrong again.
$35 vita games? haha good one.
 
Way too many people making a mountain out of a molehole. This isn't going to be another PSP Go. OLED Touch Screen/Dual Analog Sticks, graphics on par with PS3/Xbox 360. You can't say they aren't giving people what they want. Whether or not people buy it will be up to us, the consumers. You can't fault them for making it affordable for us, even if it ends up being a loss for them for a few years. It's really not a big deal.
 

kinoki

Illness is the doctor to whom we pay most heed; to kindness, to knowledge, we make promise only; pain we obey.
I'll be doing my part and buying software and plus services. I really am a sucker, though. I own like 30 UMDs for the PSP so I helped make that profitable so I'm guessing I'll help make VITA profitable too.
 
kinoki said:
I'll be doing my part and buying software and plus services. I really am a sucker, though. I own like 30 UMDs for the PSP so I helped make that profitable so I'm guessing I'll help make VITA profitable too.


How is the plus service? I just ordered a PS3 today and am thinking about Plus....
 
So the best case scenario is that Vita is a wild success, and any losses are easily recovered through software and accessory sales.

And the worst case scenario is it gets hacked in its first week by the many hackers who are now specifically targeting Sony, leading for pirates to build on their work and pirate the hell out of it, resulting in a financial implosion for the company.

Risky business this video games lark.
 

Rpgmonkey

Member
Huh, thought they weren't going for a loss with this?

Guess this means while it's competitive now, the 3DS has more room for price drops. This handheld generation will be pretty cool to watch.
 
outunderthestars said:
subsidized would be if AT&T sold the 3g Vita for $100 but made you sign a two year contract for data. They subsidize the price of the hardware, and make it up over time.

That is why you cannot buy an iphone for $200 without a contract, yet you can buy an ipad without one. the iphone is subsidized, whereas the ipad and vita are not.
Or AT&T could be selling 300 dollar PSV and subsidizing the loss/lack of profits by selling contracts. AT&T aren't going to be selling games like game stop to make money.

If Sony is getting a cut of that monthly contract you can bet their going to make that 3g sku as attractive as possible. I'm thinking that the 3g sku will come with a memory card and a game.
 
It's a risky strategy, but what were they suppose to do? Sell it at $299, or, even worst, $349? It would have been dead in the water.
Besides, we don't know how much does it cost to make. They may be losing something minor, such as $20, but aren't expecting processor shrinkage for a few years or something similar. There are multiple possible scenarios.
 
Faxanadu said:
I'm trying to understand the hypocricy here I see from some people...

$250 is a fair price when the company loses money but bad when the company profits?
And $40 is too much for portable games on 3DS but $50 is good on Vita?

Love what you love, buy what you want, but stop being ridiculous.

"History will teach us nothing."

I think people are ok with spending more for higher tech. Correct me if i'm wrong everyone....

I mean obviously you're asking why are people not happy about paying $250 for the new Nintendo handheld, but don't seem to mind with Sony's?

I think alot of it also has to do with past history. Sony launched PS3 for $599. Most people expected Vita to be $300 or $349 (if not $399)
 
Everybody in this thread seems to be confusing selling the system at a loss with turning a profit in three years. The article states nothing about selling the system at a loss for three years, it says Sony will have a profit on Vita in three years. Obviously you'd have to be making back money at some point on the investment in order to become profitable on the investment. It could just mean Sony will be making such a tiny amount back off the system that it will take that long for the project to get in the black
 

DiscoJer

Member
Bad_Boy said:
$35 vita games? haha good one.

Indeed. There have been several PSP games this year that have been $40.

Not to mention, around lauch, PSP games were $40-50, instead of the $30-40 they've been the last few years.
 

Striek

Member
Faxanadu said:
I'm trying to understand the hypocricy here I see from some people...

$250 is a fair price when the company loses money but bad when the company profits?
Newsflash. Normal people don't give a fuck what things cost the companies they buy from. They buy things based on perceived value. By underpricing Sony is creating value, by overpricing Nintendo is destroying it.

Thats not hypocrisy, thats common sense.
 
DiscoJer said:
Indeed. There have been several PSP games this year that have been $40.

Not to mention, around lauch, PSP games were $40-50, instead of the $30-40 they've been the last few years.

Vita games will be $49.99 MSRP - book it!
 
Chuck Norris said:
Everybody in this thread seems to be confusing selling the system at a loss with turning a profit in three years. The article states nothing about selling the system at a loss for three years, it says Sony will have a profit on Vita in three years. Obviously you'd have to be making back money at some point on the investment in order to become profitable on the investment. It could just mean Sony will be making such a tiny amount back off the system that it will take that long for the project to get in the black
You may be an insane right-wing narcissist and a loon, but you make a good point, Chuck Norris. The wording is ambiguous here.
 
Faxanadu said:
I'm trying to understand the hypocricy here I see from some people...

$250 is a fair price when the company loses money but bad when the company profits?
And $40 is too much for portable games on 3DS but $50 is good on Vita?

Love what you love, buy what you want, but stop being ridiculous.

"History will teach us nothing."
No people don't like paying 250 for old and dated hardware, but people don't mind paying 250 for advanced forward thinking hardware.

Go figure.
 
googleplex said:
No people don't like paying 250 for old and dated hardware, but people don't mind paying 250 for advanced forward thinking hardware.

Go figure.

Exactly. I think it's really that simple. State of the art handheld for $250 or another DS that has a 3D gimmick (and Nintendo 1st party games)
 
Top Bottom