• 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

Plinko

Wildcard berths that can't beat teams without a winning record should have homefield advantage
Averon said:
Yeah. With Sony going high tech with Vita--and their willingness to lose money for years--I think it's pretty safe to say the PS4 will not be two PS3s duck taped together. Sony's willingness to take losses for bleed edge tech is why I love them so.

How is that guaranteed? How do you know they won't make their money back with their next Playstation?
 
M.I.S. said:
You have to ask yourself, if even the mighty Nintendo handheld empire is struggling, what chance does Sony have in the face of growing apathy and vast competition from iOS, 3DS, PS3 and 360?
PS Suite is the big wildcard IMO, Sony should be using it to leverage an iOS like library of arcade games onto the system based on Android.

Not sure if that is their end game with it though
 

dude

dude
Drek said:
Again, Sony sold almost 70 million PSPs which was clearly a "gamers" handheld, coming out in a time when other portables (phones, DS, GBA, etc.) already offered much cheaper portable experiences. This while rivaling the most successful handheld ever (the DS) for those "gamers". The 3DS so far hasn't become the runaway freight train that the DS became (though it still might) and that "gamer" segment has only grown.

Add that the system will likely offer all the same features as an iPod Touch with significantly more horsepower and at lower cost, and that assuming Sony maintains remote play it will offer a similar experience for PS3 owners as what the Wii U will be offering. There are multiple avenues for Sony to leverage a very successful Vita platform.
When the PSP launched there were almost no 3d games on phones, it was before the first iPhone launched and before the mobile market exploded. It wasn't just a different world, it was a whole damn other universe in terms of mobile devices. You can't compare the PSP or the DS to today's landscape. The PSP lost against the DS, why? What did the DS offer? It offerred Brain Age, Animal Crossing - it catered to the "blue ocean" market nintendo talked so much about, like women and older people. Where are those people getting these experiences now? On their pads, smartphones and the likes.
I doubt Sony can achieve enough of a success to turn a profit with a console they're selling at a loss. But clearly, they're in a bind - They couldn't have sold it for more, 250$ is pushing the boundaries as is. They'll have to find very creative way to justify the Vita's existence in the eyes of consumers who are not you or me, and frankly, I can't think of a way for them to do that.

And don't delude yourself, please, it's pathetic - The thing can't compete with the iPod anything. Even if it has more horsepower. People who are buying a product that competes with iOS products expects many features that Vita doesn't have (like apps). Sony can't market this device as a iOS competitor, they must go the Nintendo route and market it as something that can live along side your iOS device.
 

Woo-Fu

Banned
Offering more for less is the only way David beats Goliath in the war for market share. Win that war and profitability takes care of itself.
 
dude said:
Sony can't market this device as a iOS competitor, they must go the Nintendo route and market it as something that can live along side your iOS device.

I could not agree more.

The PSVita at its core is a dedicated gaming device and it should be marketed as such.

Woo-Fu said:
Offering more for less is the only way David beats Goliath in the war for market share. Win that war and profitability takes care of itself.

This time the Goliath isn't anywhere near as big and strong, Sony only have themselves to beat.
 

yurinka

Member
M.D said:
What abut PSN?

Kaz said not so long ago that they're still losing money on it, but by 2012 they expect to make $3 billion from PSN alone
They already know that they were going to release Vita. Large companies always think in long term.
 
Mama Robotnik said:
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.

I think hacking has hurt bot nitendo and sony but not enough to deter them from the market. If I am not mistaken the tie ratio for the DS was 4.5 as of last numbers and the PSP tie ratio is 4.2. Maybe they could be higher if not for the piracy, but the numbers are pretty close so I doubt that piracy has completely destroyed sales when looking at the consoles comparatively.

dude said:
I meant, in todays landscape, with mobile devices and the like, there's hardly any reason to buy a dedicated portable gaming device - In three years, I'm guessing both Nintendo and Sony are going to be in quite a ditch in the portable market. Expecting to return the investment in three years seems very very risky to me.
I mean, will games like Lumines sell on Vita for 40$? Who'll but them? you can get similar experiences on you mobile device for a fraction of the price. The only thing the Vita has to distinguish itself is games like Uncharted - "full console" experiences on the go. But who's in the market for that? I can't think of many but the "gamers" segment. The 3DS made it clear to me that portable gaming devices are not going to survive in their current form.

I'm just glad Sony is thinking a head with their PS Suite.

Of course there is. Actual "good" games. The vast majority of games out on the devices are casual fare. It isn't any different from years ago when casuals were content on playing tetris or chess on their smartphone. The casuals still won't care. Dedicated devices are for dedicated gamers who have never been satisfied with the casual titles on phones, and like buttons. Buttons! Who would purchase Lumines for the vita? I would.... especially because of the buttons. But this is sony we are talking about. They are not going to kill the PSP. So if there are gamers who are interested in dedicated gaming but wary of cost, chances are the PSP and the DS will still be on the market for those who are more frugal and don't mind being late to the party.

dude said:
When the PSP launched there were almost no 3d games on phones, it was before the first iPhone launched and before the mobile market exploded. It wasn't just a different world, it was a whole damn other universe in terms of mobile devices. You can't compare the PSP or the DS to today's landscape. The PSP lost against the DS, why? What did the DS offer? It offerred Brain Age, Animal Crossing - it catered to the "blue ocean" market nintendo talked so much about, like women and older people. Where are those people getting these experiences now? On their pads, smartphones and the likes.
I doubt Sony can achieve enough of a success to turn a profit with a console they're selling at a loss. But clearly, they're in a bind - They couldn't have sold it for more, 250$ is pushing the boundaries as is. They'll have to find very creative way to justify the Vita's existence in the eyes of consumers who are not you or me, and frankly, I can't think of a way for them to do that.

And don't delude yourself, please, it's pathetic - The thing can't compete with the iPod anything. Even if it has more horsepower. People who are buying a product that competes with iOS products expects many features that Vita doesn't have (like apps). Sony can't market this device as a iOS competitor, they must go the Nintendo route and market it as something that can live along side your iOS device.

Are you serious? The PSP "lost" to the DS? The PSP has been the only serious competitor to the Nintendo handheld dominance in 20+ years. If you yourself admit that the PSP is not aimed for the "the blue ocean" which is now being eaten up by the new tech, yet it still managed to sell 70 million units then you are simply ignoring the point you have just proven.

There is still a market for dedicated gamers and the success of apples platform has no bearing on the strength of appeal that dedicated platforms have.
 
What exactly is wrong with keeping gaming within the domain of gamers? There is a 100 million + audience of gamers available, and frankly I don't think either of the big three are making the most of that.
 

m.i.s.

Banned
dude said:
When the PSP launched there were almost no 3d games on phones, it was before the first iPhone launched and before the mobile market exploded. It wasn't just a different world, it was a whole damn other universe in terms of mobile devices. You can't compare the PSP or the DS to today's landscape. The PSP lost against the DS, why? What did the DS offer? It offerred Brain Age, Animal Crossing - it catered to the "blue ocean" market nintendo talked so much about, like women and older people. Where are those people getting these experiences now? On their pads, smartphones and the likes.

I doubt Sony can achieve enough of a success to turn a profit with a console they're selling at a loss. But clearly, they're in a bind - They couldn't have sold it for more, 250$ is pushing the boundaries as is. They'll have to find very creative way to justify the Vita's existence in the eyes of consumers who are not you or me, and frankly, I can't think of a way for them to do that.

And don't delude yourself, please, it's pathetic - The thing can't compete with the iPod anything. Even if it has more horsepower. People who are buying a product that competes with iOS products expects many features that Vita doesn't have (like apps). Sony can't market this device as a iOS competitor, they must go the Nintendo route and market it as something that can live along side your iOS device.

This is exactly it. PSV leaves Sony exposed on all fronts: minis, touchscreen and gyroscopic titles with iOS and blockbusters with 360 and PS3. Then there's competition from Nintendo's first party efforts on 3DS - and Nintendo have considerable room for price cuts whilst still making a profit on both hardware and games.
 

dude

dude
Opus Angelorum said:
I could not agree more.

The PSVita at its core is a dedicated gaming device and it should be marketed as such..
Yes, but that's not a easy thing to do. Unless Sony can make people actually believe they want a dedicated gaming device in this day and age, they'll fail miserably. We really should look at Nintendo to see this - On paper, Nintendo did almost everything right. They had many things to distinguish their product - The brand, the 3D buzzword. But they can't make the thing fly.
Can Sony really do this better? Right now it seems to me that both products belong to a different era - The pre-mobile era. And with the foresight Sony showed with the PS Suite, I really don't understand why they didn't create a different device.
 
This does not bode well for the price of individual games. I'm happy that it's cheap, but I'm honestly afraid of the methods they'll employ to recoup the money lost because of the hardware price.

oh boy...
 

Gravijah

Member
Chuck Norris said:
What exactly is wrong with keeping gaming within the domain of gamers? There is a 100 million + audience of gamers available, and frankly I don't think either of the big three are making the most of that.

Are people who play games not gamers?
 

beje

Banned
If they're going to release hardware at a loss I really can't wait to see the price for games, propietary memory cards and official accesories. Fun times ahead.
 

F#A#Oo

Banned
The PSVita has failure written all over it... who is suppose to buy this handheld?

It looks like the PSP all over again...a redo...
 

Durante

Member
dude said:
I meant, in todays landscape, with mobile devices and the like, there's hardly any reason to buy a dedicated portable gaming device
That's only true if you're a casual gamer. The elephant in the room is that 99.9% of the games available on smartphones and tablets suck. And that, for many genres, it's almost impossible to do better. Turns out that buttons are pretty important.

(I'm saying this as someone who owns the best smartphone currently available and has tried a lot of the offerings)
 
dude said:
Yes, but that's not a easy thing to do. Unless Sony can make people actually believe they want a dedicated gaming device in this day and age, they'll fail miserably. We really should look at Nintendo to see this - On paper, Nintendo did almost everything right. They had many things to distinguish their product - The brand, the 3D buzzword. But they can't make the thing fly.
Can Sony really do this better? Right now it seems to me that both products belong to a different era - The pre-mobile era. And with the foresight Sony showed with the PS Suite, I really don't understand why they didn't create a different device.

It is an assumption that people care about 3D. By large the industry is "forcing" 3D down consumers throats. The reason the 3DS isn't swinging right now is because of the launch lineup and the sheer fact that the DS is still pretty strong. The software is always what mattered in the end for game software. Very few devices can sustain momentum based off of name alone.

Why do you think Sony needs to create a different device if it has similar functionality to phones on the market with the simple twist of being a dedicated games machine?


Why does it seem as if you are so enamored with iOS and smartphones that you honestly believe people don't care about dedicated gaming devices anymore?
 

Gravijah

Member
Durante said:
That's only true if you're a casual gamer. The elephant in the room is that 99.9% of the games available on smartphones and tablets suck. And that, for many genres, it's almost impossible to do better. Turns out that buttons are pretty important.

(I'm saying this as someone who owns the best smartphone currently available and has tried a lot of the offerings)

OT, but what is considered the best smartphone currently available in your opinion? Just curious.
 
Fantastic move to making the PSV compelling and with true definitive out of the gate first party support. Let us hope it reaches greater status than PSP and is able to retain quality software from Sony Computer Entertainment Worldwide Studios and their publishing partners to reach profitability in less than three years.
 

m.i.s.

Banned
Zoe said:
So much for a PS3 price cut.

Talking of PS3, there was a time when Sony were on the cusp of releasing the PS2 and also the precursor to PSP. Ken Kutaragi kicked that project into the long grass and said [to paraphrase] "No! concentrate all our energies on PS2".

Indeed - and it's clear that Kutaragi was swift to kill the project as soon as possible, convincing Ando-san that pouring all of Sony's resources behind the PlayStation 2 was a more important task at the time.

Sony's 1998 portable gaming plans revealed - note: registration required
 

Plinko

Wildcard berths that can't beat teams without a winning record should have homefield advantage
1-D_FTW said:
If true, prepare to lube up and bend over on the pricing for the memory cards.

And games.
 

Durante

Member
Gravijah said:
OT, but what is considered the best smartphone currently available in your opinion? Just curious.
Galaxy S2.
(But I'm a huge OLED fanboy, so that may cloud my judgement a bit. Can't really think of anything comparable though)
 

Tobor

Member
Durante said:
Galaxy S2.
(But I'm a huge OLED fanboy, so that may cloud my judgement a bit. Can't really think of anything comparable though)
How can make a blanket statement about mobile gaming when you only have access to a small fraction of it? Get real.
 

dude

dude
staticneuron said:
Of course there is. Actual "good" games. The vast majority of games out on the devices are casual fare. It isn't any different from years ago when casuals were content on playing tetris or chess on their smartphone. The casuals still won't care. Dedicated devices are for dedicated gamers who have never been satisfied with the casual titles on phones, and like buttons. Buttons! Who would purchase Lumines for the vita? I would.... especially because of the buttons. But this is sony we are talking about. They are not going to kill the PSP. So if there are gamers who are interested in dedicated gaming but wary of cost, chances are the PSP and the DS will still be on the market for those who are more frugal and don't mind being late to the party.

Good in what way? I'm talking about sells here - In the only objective way I can think of, sales, Angry birds is better than most games recently released.
"Casuals" are what made the DS the monster it is today, with 140+ million in sells. When the DS and PSP launch there were no "Smartphones" in the current sense, The iPhone was announced in 2007! 3 years after the PSP. And it still took some time to the current mobile market to explode in the way that it has. And today, we have these kind of experiences on these things for a fraction of the price of what you paid for portable games on the PSP and DS. The "Casuals" won't care, we both agree - now the question is, will the "gamer" segment care, and is this segment even big enough to support a console being sold at a loss. We can't know that yet, but if you look at the future, like the nVidia Kal-El on mobile devices and devices like the Xperia Play and platforms like the PS Suite, it's clear where the wind are blowing even for some "gamers", but not only that - The Vita is now competing with the 3DS on this very small "gamers" segment.

staticneuron said:
Are you serious? The PSP "lost" to the DS? The PSP has been the only serious competitor to the Nintendo handheld dominance in 20+ years. If you yourself admit that the PSP is not aimed for the "the blue ocean" which is now being eaten up by the new tech, yet it still managed to sell 70 million units then you are simply ignoring the point you have just proven.

There is still a market for dedicated gamers and the success of apples platform has no bearing on the strength of appeal that dedicated platforms have.
The PSP sold half the DS, that's what I mean by "lost". I admit that the PSP catered mostly to the "gamers" segment - but the fact that they sold 70 million units is in no way proof catering only to the "gamers" segment will result in 70 million sells. We'll have to see how the thing will turn out, but I don't expect it selling anywhere near the amounts we saw this gen - And I still have strong worries about Sony's ability to return the investment if they are indeed selling at a loss.

Durante said:
That's only true if you're a casual gamer. The elephant in the room is that 99.9% of the games available on smartphones and tablets suck. Turns out that buttons are pretty important.

(I'm saying this as someone who owns the best smartphone currently available and has tried a lot of the offerings)
See what I said about Angry Birds. I don't like the game, neither do many people - But I have to accept that it's a good product because of it's sales.


staticneuron said:
It is an assumption that people care about 3D. By large the industry is "forcing" 3D down consumers throats. The reason the 3DS isn't swinging right now is because of the launch lineup and the sheer fact that the DS is still pretty strong. The software is always what mattered in the end for game software. Very few devices can sustain momentum based off of name alone.

Why do you think Sony needs to create a different device if it has similar functionality to phones on the market with the simple twist of being a dedicated games machine?


Why does it seem as if you are so enamored with iOS and smartphones that you honestly believe people don't care about dedicated gaming devices anymore?
No industry is forcing anything down anybody's throat. This is a direct response to consumers decisions. 3D is a buzzword for a reason. This is from someone who can't watch a 3D movie without bleeding from my eyes.
I think Sony would have done better for themselves if they made something that felt "right" for it's era. The Vita is a successor to the PSP in many ways, just as the 3DS is a successor to the DS, and I don't think people have interest in these devices any more.
I am not enamored with anything - I'm looking around me, and I see kids playing Angry Birds and Fruit Ninja on their iPhones instead of Pokemon. They don't want a Vita for their birthdays - They want an iPad. That's the future, and people should adapt to it.
 

Tobor

Member
Gamecocks625 said:
Get ready to enjoy those fabulous customer friendly prices on software and memory cards!
That's what's holding back my excitement. It's not going to be $250 once the memory card is factored in, probably closer to $300, and the games will be outrageously priced as always.
 

Gravijah

Member
Tobor said:
That's what's holding back my excitement. It's not going to be $250 once the memory card is factored in, probably closer to $300, and the games will be outrageously priced as always.

Hopefully it is devoid of online passes because damn it I love my rentals.
 

darkwing

Member
who needs a memory card though when you just want to play a catridge game, i thought the game saves were in the game catridge
 
F#A#Oo said:
The PSVita has failure written all over it... who is suppose to buy this handheld?

It looks like the PSP all over again...a redo...
imageun.png
 
darkwing said:
who needs a memory card though when you just want to play a catridge game, i thought the game saves were in the game catridge

Memory cards will be needed if you want to download games/content from PSN or if you want to store something on there like movies, music, apps or whatever.

But you're right. If you simply are going to play retail games then it's possible to not need a memory card I suppose.

Tobor said:
That's what's holding back my excitement. It's not going to be $250 once the memory card is factored in, probably closer to $300, and the games will be outrageously priced as always.

I have a horrible feeling that game will be $50.
 

1-D_FTW

Member
darkwing said:
who needs a memory card though when you just want to play a catridge game, i thought the game saves were in the game catridge

I guess if you're somebody who doesn't have internet access and doesn't care about apps, DD, demos, etc. For everybody else, it's a requirement.
 

darkwing

Member
1-D_FTW said:
I guess if you're somebody who doesn't have internet access and doesn't care about apps, DD, demos, etc. For everybody else, it's a requirement.

look at the Xbox360 Arcade unit, no HDD but sold tons
 
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.

Wait, the 3DS had a "pretty good launch lineup"? I beg to differ.

And 3DS isn't "selling like shit" ... it's the fastest selling Nintendo handheld, it's just being held up to the ridiculous DS standard, which in time, I'm sure it will get close to.

And companies don't "usually sell at a lost", Microsoft and Sony have. Nintendo is making a killing NOT practicing that.

I don't personally care what Sony's financial status is with the project, $250 is a decent price and I'll scoop one up for that.
 

Dunan

Member
There's one thing I'm hoping to see from this announcement and its implication that, with cheap hardware, the games will be expensive: worldwide game distribution and the complete elimination of regional lockouts and even regional distinctions.

They need to get people buying games. As many as possible. The best way to increase the number of game purchases, aside from lower prices, is to make games available. There's no excuse for limiting purchases of a certain game to people who live in certain territory: get all those game available to a worldwide audience! There are many multilingual people in the world who can read languages other than the major ones in their territories, and they'd love to buy more games. Don't stop us from doing that!

But the pessimist in me fears that Sony will go the opposite route and aggressively set different game prices based on the maximum that each territory will bear, and then lock the console to the region it was purchased in.

A potential region lock is the only thing that would torpedo my desire for a Vita and a day-one purchase. My console must be region free because I am region free. Got that? Comprendes? Verstehst du? 分かった?
 

Minsc

Gold Member
Durante said:
That's only true if you're a casual gamer. The elephant in the room is that 99.9% of the games available on smartphones and tablets suck. And that, for many genres, it's almost impossible to do better. Turns out that buttons are pretty important.

(I'm saying this as someone who owns the best smartphone currently available and has tried a lot of the offerings)

99.9% of the games sucking still leaves about 100 good core games, not too shabby.

Obviously if you play genres that are catered to touch devices, board games like Monopoly, Life, Carcassonne, or puzzle games like Puzzle Quest, or Tower Defense games or Casual games, they're pretty incredible as you mention. And they're great for more educational games too. RPGs and SRPGs could also work very well (maybe even better), and perhaps a few other genres if controls are implemented properly.
 

J-Rod

Member
They've always done this and Microsoft does this, but every time GAF acts like it is some new and crazy idea. They just can't seem to wrap their heads around it. Was it not painfully obvious when they announced the price that is was selling at a loss? Consider how much smart phone hardware costs when it isn't subsidized in a contract and then consider how much better the components are in the psv. Pachter needs to break this down for the kiddos.
 

1-D_FTW

Member
Tobor said:
You mean all the idiots who had to buy overpriced memory cards?

Exactly. And I forgot to mention patches in my original post. Some luddites on gaf would tell you patches are the devil's work, but I'd rather have a patch that eliminated a glitch in multi-player than have that glitch go unpatched and permanently end the online community for it.
 
Hellion said:
Are people actually bitching about this?

THANK YOU SONY.
Well, the oportunity of critizicing the price has passed, now ITT we criticize Sony's stupidity for selling such an awesome hardware for cheap and also we criticize the price of its games even when those haven't been announced.
 

Plinko

Wildcard berths that can't beat teams without a winning record should have homefield advantage
The Omega Man said:
Well, the oportunity of critizicing the price has passed, now ITT we criticize Sony's stupidity for selling such an awesome hardware for cheap and also we criticize the price of its games even when those haven't been announced.

It's not stupid at all and nobody should be criticizing their decision.

That said, to believe that Sony is going to sit back and not make their money back somewhere else is ludicrous. They've got stockholders to report to and that's why it is completely reasonable to believe that the prices of games and memory will be higher than last generation.

You act as if this talk is completely unwarranted.
 

dabig2

Member
The Omega Man said:
Well, the oportunity of critizicing the price has passed, now ITT we criticize Sony's stupidity for selling such an awesome hardware for cheap and also we criticize the price of its games even when those haven't been announced.

It's typically why I immediately bow out of this forum shortly after E3. I'll wait 6 months for the stupid to die down and more details to come out.
 
Top Bottom