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

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.
I buy gaming consoles on the basis of the utility I will get out of them. If a system is likely to have (say) ten games that I will enjoy and get my money's worth from, a $250 handheld will cost me $25 per game as the price of entry on top of the price of the game. If the same handheld will only have five games out there that I think are worth playing, that price of entry is $50 per game on top of the price of the game.

I paid $80 for a GBA SP+ last year for the sake of playing 4 games with their glory set to maximum. I regret nothing.
 

M-PG71C

Member
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.

I would like to point to you the entire history of portable gaming. All of it. Every fucking bit of it.

If this was true, the Game Gear, Neo Geo Pocket, and yes the PSP, should have wiped Nintendo out every generation, regardless.

I digress, I'm not a Sony shareholder. I purchase stocks a bit wiser than to be a fool to trust a fool with my limited financial wherewithal. I would give Sony nothing and wish them the best.

But, as a gamer, its a good deal, especially once software comes in. But I can't help but to feel Sony is being a tad...what's the word, stupid. But hey, I'm not running the company so its all good as far as I am concerned. I can get a Vita for $250 and if Sony, somehow, turns a profit, good for them. I doubt it, and if they do I'm sure shareholders will still be pissed that other venues are making money in a shorter period of time, but I still got what I want out of it.
 

Thoraxes

Member
With the PS3 only recently turning profitable, I can see them sticking to their guns about the 10 year console launch cycle. As far as they're concerned, and I would be too, I would milk the PS3 for all it's worth, and delaying (probably) showing the PS4 till at least 2014 sounds very solid as far as turning profit goes.

I don't know how they're doing now, but the PS3 adoption rate seems to only finally be hitting it's stride with the recent price drops only over the past year to year-and-a-half.

Either way, NGP is more marketable, but the main thing that remains to be seen is how much the games are. At $50, I think it will scare away a lot of the portable market. I think it needs to be $40 and hit the same spot the the 3DS hits to remain competitive. The only problem is that with the increased development costs, a $50 may be inevitable for developers to recoup costs for games.
 
M-PG71C said:
I would like to point to you the entire history of portable gaming. All of it. Every fucking bit of it.

If this was true, the Game Gear, Neo Geo Pocket, and yes the PSP, should have wiped Nintendo out every generation, regardless.

I digress, I'm not a Sony shareholder. I purchase stocks a bit wiser than to be a fool to trust a fool with my limited financial wherewithal. I would give Sony nothing and wish them the best.

But, as a gamer, its a good deal, especially once software comes in. But I can't help but to feel Sony is being a tad...what's the word, stupid. But hey, I'm not running the company so its all good as far as I am concerned. I can get a Vita for $250 and if Sony, somehow, turns a profit, good for them. I doubt it, and if they do I'm sure shareholders will still be pissed that other venues are making money in a shorter period of time, but I still got what I want out of it.

One could argue that those handhelds had their own set of problems. Game Gear ate batteries like they were going out of style. There were no good games. Sega basically released watered down Master System ports.

Nintendo handhelds never had to be cutting edge, tech wise, because they were always priced to move, and most importantly - they had Mario, Pokemon, etc......
 

Lonely1

Unconfirmed Member
Dreams-Visions said:
Honestly, I don't see how this system succeeds with $50 games.

I have to believe Sony won't allow that.
But do they want Ps3 quality from third parties?
 
Everyone fears $50, I think they may go to $60.

I can't imagine third parties are going to want to generate PS3 quality assets and sell it for Wii-game prices.

If console publishers were not already fighting their damndest to get PC up to $60, then I could see non-$60 for the Vita, but if the basic structure is "This game on your PS3 or your Vita, they're the same!", then you can bet your ass Activision will sell Call of Duty: Modern Warfare 3 for $60.
 

neptunes

Member
M-PG71C said:
I would like to point to you the entire history of portable gaming. All of it. Every fucking bit of it.

If this was true, the Game Gear, Neo Geo Pocket, and yes the PSP, should have wiped Nintendo out every generation, regardless.

I digress, I'm not a Sony shareholder. I purchase stocks a bit wiser than to be a fool to trust a fool with my limited financial wherewithal. I would give Sony nothing and wish them the best.

But, as a gamer, its a good deal, especially once software comes in. But I can't help but to feel Sony is being a tad...what's the word, stupid. But hey, I'm not running the company so its all good as far as I am concerned. I can get a Vita for $250 and if Sony, somehow, turns a profit, good for them. I doubt it, and if they do I'm sure shareholders will still be pissed that other venues are making money in a shorter period of time, but I still got what I want out of it.
What part of this is not the first time sony has sold hardware at a loss.

Every single console they've released (except the go) has been sold at a loss at launch.

If the strategy hasn't put the company out of business back then I doubt it will now.
 

dalin80

Banned
Also to bare in mind folks is that it isnt $250 world wide.

Here in the UK $250 should be £152, but the machine is actually selling for £225 ($370)

It was much the same situation with the PS3, which was making a tidy profit in the UK/EU for years before americans stopped banging on about how sony were selling for a loss.
 
M-PG71C said:
I would like to point to you the entire history of portable gaming. All of it. Every fucking bit of it.

If this was true, the Game Gear, Neo Geo Pocket, and yes the PSP, should have wiped Nintendo out every generation, regardless.

I digress, I'm not a Sony shareholder. I purchase stocks a bit wiser than to be a fool to trust a fool with my limited financial wherewithal. I would give Sony nothing and wish them the best.

But, as a gamer, its a good deal, especially once software comes in. But I can't help but to feel Sony is being a tad...what's the word, stupid. But hey, I'm not running the company so its all good as far as I am concerned. I can get a Vita for $250 and if Sony, somehow, turns a profit, good for them. I doubt it, and if they do I'm sure shareholders will still be pissed that other venues are making money in a shorter period of time, but I still got what I want out of it.
I said "don't like" not "never would".

Is it really a mystery as to why people would rather pay 250.00 for more advanced hardware then less advanced?

This shit not rocket science
 

Zaptruder

Banned
Problem with this strategy is that they're not going to be able to really drop their price for three years. And three years in, people are going to want a price cut.

Maybe they should've offered subsidized contract models - sign up to PSV+, where you can rent a set number of games per month.

Sure, gamers would've bitched and moaned... but it'd be better business than... repeating their fiscal failures of the last 5 years.

I suppose Sony are really quite hopeful they'll repeat the PS2's success with the PSVita. Which will to a degree justify this sort of strategy.

But selling at cost and getting moderate success is a more surefire financial strategy. And doesn't necessarily preclude becoming the market leader in this segment either.
 

Kenka

Member
Neuromancer said:
I'm sure they know what they're doing

I would love to believe the same but the losses in the first years of the Playstation 3 lifespan is a warning for me. I really would like to know what is their business plan with this one.
 
Zaptruder said:
Problem with this strategy is that they're not going to be able to really drop their price for three years. And three years in, people are going to want a price cut.

Maybe they should've offered subsidized contract models - sign up to PSV+, where you can rent a set number of games per month.

Sure, gamers would've bitched and moaned... but it'd be better business than... repeating their fiscal failures of the last 5 years.

I suppose Sony are really quite hopeful they'll repeat the PS2's success with the PSVita. Which will to a degree justify this sort of strategy.

But selling at cost and getting moderate success is a more surefire financial strategy. And doesn't necessarily preclude becoming the market leader in this segment either.

Says who? Didn't PS3 drop it's price while it was still losing money?
 

bummyhead

Member
X26 said:
I love nintendo fan meltdowns


Almost as much as I love Sony fan retards, I'd wager.

That being said, I do think Nintendo fucked up by pricing the 3DS at 250, it left them wide open for Sony to come in and do this. If they had priced it at 199, Sony would not have been able to pull this stunt.

Now Nintendo will have a hard time cutting the price of the 3DS without looking a bit desperate.
 

Jomjom

Banned
Zaptruder said:
Problem with this strategy is that they're not going to be able to really drop their price for three years. And three years in, people are going to want a price cut.

Maybe they should've offered subsidized contract models - sign up to PSV+, where you can rent a set number of games per month.

Sure, gamers would've bitched and moaned... but it'd be better business than... repeating their fiscal failures of the last 5 years.

I suppose Sony are really quite hopeful they'll repeat the PS2's success with the PSVita. Which will to a degree justify this sort of strategy.

But selling at cost and getting moderate success is a more surefire financial strategy. And doesn't necessarily preclude becoming the market leader in this segment either.

Saying that they hope for profitability for the platform as a whole in 3 years does not equate to them expecting the console to sell at a loss for 3 years.
 
No doubt that Sony already has a future price drop factored in to their profitability projections. It will just be a question of when that happens. But no way it will go 2 years, let alone 3, without a price drop.
 
One thing that I like about Sony is they're willing to take losses to try and back their competition into a corner and grab market share. Can't say I wholly understand it from a business standpoint (multiple generations of taking heavy losses on hardware has to take a toll), but as a consumer it's pretty nice. They also stuck to their guns on PSP through thick and thin, and I think it paid off. Now that they're more of a known commodity in the portable market I think they've got a chance at siphoning off even more customers from Nintendo, which hopefully will keep Nintendo competitive and on their toes. It would be great if Sony's pricing lit a fire under Nintendo's ass to knock down the 3DS price.
 
General Shank-a-snatch said:
Definitely not 60. 50 would be better. :/
lol @ either price tag.

Lonely1 said:
But do they want Ps3 quality from third parties?
If third parties can't make PSV games for $40, they will have a hard time selling them.

I just don't think gamers are interested in spending console/PC money for mobile games that they'll play much less frequently.
 
bummyhead said:
Almost as much as I love Sony fan retards, I'd wager.

That being said, I do think Nintendo fucked up by pricing the 3DS at 250, it left them wide open for Sony to come in and do this. If they had priced it at 199, Sony would not have been able to pull this stunt.

Now Nintendo will have a hard time cutting the price of the 3DS without looking a bit desperate.
Nintendo underestimated how far Sony's willing to go in terms of loss leading. Their launch line up isn't great either. Still, they don't need to cut the price, the NGP isn't out yet and their heavy hitters aren't out either. The DS didn't come out swanging either, its all about the games.
 
Dreams-Visions said:
lol @ either price tag.


If third parties can't make PSV games for $40, they will have a hard time selling them.

I just don't think gamers are interested in spending console/PC money for mobile games that they'll play much less frequently.

Ok, so after you're done LOLing, what do YOU think is a fair price for Playstation Vita games?
 
I would be ok with $45. Mind you, I would purchase when they're actually a fair bit cheaper, but for an MSRP I think that would be fine.
 

Nicktals

Banned
Once I see Monster Hunter, I'm in.

Maybe not the best place to ask, but how exactly does the 3G version work? It's exclusive to AT&T, so I have to have a data plan through at&t in order to have 3G? can this be combined with an existing data plan?
 

J-Rock

Banned
Mama Robotnik said:
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?

Yeah it's awesome and horrible at the same time. I wish they had a better business model in place. These fuckers love to gamble in strange ways.
 
Justin_Bailey said:
Ok, so after you're done LOLing, what do YOU think is a fair price for Playstation Vita games?
$40 is the price tag that makes mobile games move. $40 or less is what they'll have to hit.

These will be shorter, less featured games designed for short "on the go" play. These are not console games. They should not have console prices.

It's pretty simple.
 
They'll be games available from .99 cent ps suite pick- up and plays to 50 dollar big meaty games. Just pick your poison and let the market handle the rest.
 
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.

That's the problem, they have been planning this for years but the company has taken a big hit lately. They don't have any real margin for error with this that they might have had a couple of years ago.
 

KaYotiX

Banned
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.

HELL NO!!! I want them to be at least the same price as 3DS games but just by looking at some of these games on the Vita it looks like they could cost some $$ to develop.
 
Dreams-Visions said:
$40 is the price tag that makes mobile games move. $40 or less is what they'll have to hit.

These will be shorter, less featured games designed for short "on the go" play. These are not console games. They should not have console prices.

It's pretty simple.

Ok, well let's just say that MSRP is Vita games is $49.99 (which I think it will be - but you never know)...... That is 10 dollars more than your magic price point. Is it that far fetched to think Amazon won't have these games on sale every so often for $44.99?, and with promotional credit deals, etc....it should be pretty simple to get these games for that price point if you are willing to wait for deals.

I agree with you that these games will be shorter in length, more designed for on the go play. But they still seem to have very high production values, and graphics that rival something we've NEVER seen in a hand held before. I think we're all going to be surprised how popular this thing actually is going to be with gamers. I think it's gonna be hot.
 

J-Rock

Banned
Hellion said:
Are people actually bitching about this?

THANK YOU SONY.

Well some of us actually want Sony to be around in the future so we can enjoy their creations. When I buy Sony products now I feel like I'm drinking their blood. I really don't want to kill them just to feed my insatiable hunger for games.
 

DiscoJer

Member
ShockingAlberto said:
Everyone fears $50, I think they may go to $60.

I can't imagine third parties are going to want to generate PS3 quality assets and sell it for Wii-game prices.

If console publishers were not already fighting their damndest to get PC up to $60, then I could see non-$60 for the Vita, but if the basic structure is "This game on your PS3 or your Vita, they're the same!", then you can bet your ass Activision will sell Call of Duty: Modern Warfare 3 for $60.

I don't think it's just assets, they won't want to undercut sales by selling the same game (with maybe 75% of the graphics quality) for $10.

Not to mention flash carts aren't cheap. Yes, they are cheaper than they used to be in days past when they were $100-120 for the biggest games on SNES/Genesis. But they do cost more than optical media, which is just pennies.
 
J-Rock said:
Well some of us actually want Sony to be around in the future so we can enjoy their creations. When I buy Sony products now I feel like I'm drinking their blood. I really don't want to kill them just to feed my insatiable hunger for games.

Sony is doing just fine selling over priced Bravia televisions, and proprietary storage media for cameras/handhelds/etc.....
 

kuroshiki

Member
Game price will be aroud $29-39. Which I have zero problem since amazon credit + promotion I will always get game aroud 20-30 range.

And with quality stuff like Dragon Crown? Bring it on.
 

J-Rock

Banned
Justin_Bailey said:
Sony is doing just fine selling over priced Bravia televisions, and proprietary storage media for cameras/handhelds/etc.....

Well they keep losing billions. They need to get ahead and not take years to just break even.
 

Gravijah

Member
kuroshiki said:
Game price will be aroud $29-39. Which I have zero problem since amazon credit + promotion I will always get game aroud 20-30 range.

And with quality stuff like Dragon Crown? Bring it on.

I highly doubt the average game will be 30 dollars.
 
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