Originally posted by elaniel
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Originally posted by Phar View PostPretty much this, for most it'll be waste of time buying the pricier model as you should be able to tether it via bluetooth to your mobile for internet like you could with the PSPGo.
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Sony have said they don't anticipate making any money from the PSV until about three years into its lifespan! Is that to make potential owners to feel they are getting a real bargain at launch? How many games will have to be sold to offset the loss on the hardware?
I would have expected a bit of a loss on it but for three years, surely there will be a model with reduced size chipset in that time. Cost of other components should fall over time as well.
Surely this just plays into Nintendo's hands knowing that Sony cannot afford to cut the price of the PSV and they can continue to earn a healthy margin on the 3DS.
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Loss leader models can be very effective.
It's key to remember that they're fighting against Apple as well as Nintendo. Apple need to make profit from every ipod sale, whilst they make money from the app store, I should've imagine they royalties they'd get from each user aren't likely to go past $20 or so (which would translate to $60 worth of apps). Sony however probably make around $10 a game and people are likely to have 5+ games.
Unlike Nintendo, Sony can absorb the costs of mistakes because of the size of the company and the range of markets they're in.
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I don't see how Sony can, not only do Nintendo earn profit on every 3ds console sold, they also do well from the games and store. Nintendo's tech recycling works well for them as they keep capturing the imagination of the non traditional gamers.
Apple too make profit on every iphone and ipod touch sold, they also do very well on the app store too. Both these companies continue to make solid profit from both devices and software. Sony also don't have the advantage of apple in that they are always in your pocket ready for that next impulse purchase.
Don't get me wrong its a gorgeous console (should of carried on with the psp moniker though) but to make it work Sony are going to have to get a lot of killer titles out on launch, as well as keep a steady stream of them throughout the consoles life, in order to attract gamers to it consistently. In this market i don't see that happening.Last edited by fishbowlhead; 09-06-2011, 11:29.
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