Sony FY2015 Q1 (PS4: 3.0m shipped) PS4 total = 25.3m shipped worldwide

The Artisan said:
on a hunch, i suppose maybe to give people perspective on how much sony is bleeding even with the massive success Ps4 seems to be.
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But that's a wrong perspective, because it ignores other parts of Sony that makes more profits to make up for the loss.

It's an ingenious headline that takes advantage of the fact that PS4 and Xperias are the two most consumer attention grabbing Sony news out there for different reasons. PS4 for its success, Xperias for its failure.

Every other news site is singing praises for PS4 sales success. How to write that story, but differentiate it to draw attention?

Spin a negative twist by using the other popular headline (Xperias) to imply how it affects the success story(PS4)
 
You guys want to make this interesting? Let's make Avatar bet.

I say Sony will reduce the price of PS4 officially at Paris Games Show in October by $100. If this does not happen then I will change my Avatar to whatever you guys decide for a month.
 
The Artisan said:
on a hunch, i suppose maybe to give people perspective on how much sony is bleeding even with the massive success Ps4 seems to be.
Click to expand...

And this is exactly why such a headline is dumb in this context : instead of bleeding, Sony Corp made a whopping 82,4 billion yen net income for the quarter :D That's 665 million dollars.
 
jayu26 said:
You guys want to make this interesting? Let's make Avatar bet.

I say Sony will reduce the price of PS4 officially at Paris Games Show in October by $100. If this does not happen then I will change my Avatar to whatever you guys decide for a month.
Click to expand...
Season_five_eugene_porter.png
 
jayu26 said:
You guys want to make this interesting? Let's make Avatar bet.

I say Sony will reduce the price of PS4 officially at Paris Games Show in October by $100. If this does not happen then I will change my Avatar to whatever you guys decide for a month.
Click to expand...

You really think that Sony is going to bypass $350 and go straight to $300???
 
I just don't see a price cut any time soon as some people do. It just seems like a simple supply and demand economics case. Right now demand is still high enough at the $400 price point that the PS4 is still producing record sales. With Sony's refinement of the manufacturing process production costs are reduced resulting in further profit from each unit sold. Therefore, it stands to reason that a price cut would not be forthcoming until demand has tailed off at the $400 price point since they are maximizing profit by keeping it at that level. Microsoft and Nintendo are not providing enough competition to induce Sony into a price cut as their market share is not being threatened in any territory. They could conceivably keep the same price in place for the balance of 2015 and have little incentive to not continue doing so.
 
jayu26 said:
You guys want to make this interesting? Let's make Avatar bet.

I say Sony will reduce the price of PS4 officially at Paris Games Show in October by $100. If this does not happen then I will change my Avatar to whatever you guys decide for a month.
Click to expand...

Hmm, if I was Sony I'm not sure I'd drop the price for a couple of reasons.

1.) Sales are still good, if not great.
2.) Sony's first party lineup for fall is not so good, and that is where they make a ton of money. Dropping the price with those titles could lead to a ton of system with game purchase sales.
3.) Sony does not have have anything to prove at this point.

If I had better internal cost estimates for production of consoles, I might change my mind.

Conversely,

1.) If costs would allow a 50 to $100 price drop, it would allow Sony to continue magnifying their lead, and lead to additional leverage with 3rd parties. It would likely push MS to drop their price early, and their cost per unit is likely higher.
2.) The first party lineup is poor, getting people to pick up a console this fall with a price drop would make 3rd parties happy. Additionally it could free up extra first party sales next year, when those same first party titles could push systems on their own.

It's really not as cut and dry as it seems.
 
Skeff said:
Thr first price drop for Sony home consoles has always been $100. Even the ps2...
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It's an interesting point.

My personal suggestion is $350 with Uncharted Collection. It's their best bet to maximize value, and future first party sales. They could drop to a solid 299 next year when Horizon and Uncharted launch while removing the pack in.

Edit: Next year would also be the perfect time to coincide that price drop with a new model PS4 too.
 
Suikoguy said:
It's an interesting point.

My personal suggestion is $350 with Uncharted Collection. It's their best bet to maximize value, and future first party sales. They could drop to a solid 299 next year when Horizon and Uncharted launch while removing the pack in.
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Personally I think they should drop the price by $100 whenever that that keeps the hardware profitable, which could be soon. Or could be 2016. Don't think $50 has enough impact.
 
Skeff said:
Personally I think they should drop the price by $100 whenever that that keeps the hardware profitable, which could be soon. Or could be 2016. Don't think $50 has enough impact.
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Fair point. I wish we knew their margin. Their early choice of GDDR5 will pay off in lower costs as time goes on.
 
"a strategic decision not to pursue scale in order to improve profitability"
Common theme in the results release. Let that guide your price cut discussions.
 
GopherD said:
"a strategic decision not to pursue scale in order to improve profitability"
Common theme in the results release. Let that guide your price cut discussions.
Click to expand...

Whatever Gopher, I wanna go with my gut and not with my heart. Or was it with my heart and not with my head?
 
GopherD said:
"a strategic decision not to pursue scale in order to improve profitability"
Common theme in the results release. Let that guide your price cut discussions.
Click to expand...

That might be referring to their use of premium model. Of which focuses on a quality product at a higher price, over number of units produced.

Compare that to Moto G which would focus on producing more units, while not trying to be a premium-based product.
 
I'm guessing the price drop will be

  • $299 for the OG 500gb SKU
  • $349 for 1TB SKU
  • $399 for Bundle SKUs and LE Consoles


Then for Black Friday

  • 500 GB SKU bundled with 1 game, 3 months PS+, and $50 PSN voucher @ $299
  • 1tb SKU with 2 games @ $299
  • All Bundled and LE SKUs @ $349


Black Friday pricing would revert at the end of the month.

But this is just a personal guess really. If this happens I think it would sell boat loads of PS4s especially with a LE Star Wars bundle or an Official COD Bundle.

Nevermind. I changed my mind.
Based Gopher.

Wait a second
GopherD said:
"a strategic decision not to pursue scale in order to improve profitability"
Common theme in the results release. Let that guide your price cut discussions.
Click to expand...

Did it actually say that in the release? Well nvm then. Perhaps a sizable price cut isnt as likely as i thought it was.


Toki767 said:
The Bingo sheet is missing an entire row.

Also RIP Aquamarine. That slot is never getting bingo'd. :(
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tumblr_inline_mgs2onaZFs1rpt0rh.gif


We miss you Aqua...
 
Amazing numbers, too bad I only have bought 3 games for it own 8 games but only played 4, one of those games 2 of those games were on PS3, and the third is a psp remake.I seriously need tlg, ffxv,ff7,kh3,Shenmue 3, or bloodstained.
 
I'm just going to guess that the Destiny: TTK bundle will be the standard, 399 with pack in, black Friday bundle will probably get two games with 399.
 
Nightengale said:
But that's a wrong perspective, because it ignores other parts of Sony that makes more profits to make up for the loss.

It's an ingenious headline that takes advantage of the fact that PS4 and Xperias are the two most consumer attention grabbing Sony news out there for different reasons. PS4 for its success, Xperias for its failure.

Every other news site is singing praises for PS4 sales success. How to write that story, but differentiate it to draw attention?

Spin a negative twist by using the other popular headline (Xperias) to imply how it affects the success story(PS4)
Click to expand...
i see what you're saying. So I think while verge made a clickbait article, it is still truthful since I guess all they're saying is that the bleeding/red sony is in because of Xperias is an overall greater number than the healing/green sony has done with the Ps4, without talking about how the company is doing overall.

Jarod McChicken said:
And this is exactly why such a headline is dumb in this context : instead of bleeding, Sony Corp made a whopping 82,4 billion yen net income for the quarter :D That's 665 million dollars.
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wow. Well, good for them. Having the ps4 ride so long without a pricecut must be really helping them out. As well as the fact that there are probably more psplus subscribers than before for psn.
DNAbro said:
I'm just going to guess that the Destiny: TTK bundle will be the standard, 399 with pack in, black Friday bundle will probably get two games with 399.
Click to expand...
isnt that exactly what they did last year?
 
Price cut will happen once PS4 sales start to decline. Price cut is a tool to improve market share, and Sony has no need to improve that as of right now. Due to company financial situation, I believe Sony wants to get as much profit out of this situation as possible. Price cut will happen at the earliest late 2016, but probably in 2017.

I'm not willing to bet on this though.
 
daniel77733 said:
Sony would be better off releasing those bundles for $400 instead of a price drop. I don't see a price drop happening early 2016 either. It's almost a guarantee that we'll see an Uncharted 4 PS4 bundle which would be the next bundle after Battlefront.

Personally, if possible by then, I would announce the PS4 slim at E3 2016 and lower the price to $300 at the same time for the slim with a July 2016 release. Once the Uncharted 4 bundle comes out, I would only have that bundle for those four months until the slim PS4. That way, it would be an easy transition with few left over original sized PS4's.

Doubt that the slim PS4 would happen next year but if possible, that's what I would do. Price drop to $300 at E3 2016 either way. No way in hell would I drop the price when I know it will continue to sell at a steady pace for the rest of 2015 and with Uncharted 4 and SFV next March, I keep it at $400.
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Greenpaint said:
Price cut will happen once PS4 sales start to decline. Price cut is a tool to improve market share, and Sony has no need to improve that as of right now. Due to company financial situation, I believe Sony wants to get as much profit out of this situation as possible. Price cut will happen at the earliest late 2016b but probably in 2017.

I'm not willing to bet on this though.
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They're cutting the price before Morpheus comes out. It might not be this year, it might not even be before Uncharted, but they're not going to go into the Morpheus launch (which will probably be somewhere between $200 and $400) with a $400 base price for the system.
 
$299 will probably happen before Morpheus or right alongside Morpheus. Before then, $349 with a game bundle will do just fine.
 
StrongBlackVine said:
No way it will be a year old game(regardless of expansion) IMO.
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Hmmmm... maybe that is how they get their "price drop?" Rather than go 350USD it is "comes with pack in Taken King and choice of COD BO3 or Battlefront." It is still 400, but looks mighty tempting to any shooter fan that isn't 100% set on Halo 5.

Edit: For the record I think the 400USD for the limited edition PS4 means September price drop to 350 with one game and black friday/holiday deals throwing in an extra big game (400 for special skinned ones). The above musing is just an alternative idea to the already abundant speculation.
 
Trust me said:
Hmmmm... maybe that is how they get their "price drop?" Rather than go 350USD it is "comes with pack in Taken King and choice of COD BO3 or Battlefront." It is still 400, but looks mighty tempting to any shooter fan that isn't 100% set on Halo 5.
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I could see that (I expect a price cut though), but it will be a new game(like COD or Battlefront) like they are currently pushing with Arkham Knight.
 
The limited edition Destiny bundle is now up for preorder on Amazon for $400. If I remember right the Batman LE bundle was $450, $50 more than the standard Batman bundle. This could indicate a $50 price drop between now and the launch of The Taken King. I wouldn't be surprised to see a price drop happen during Gamescom.

Edit: I am clearly very slow on this, lol.
 
Here's what I think Sony should do in regards to console options -

1 - Release a COD themed console with a 1TB hard drive and at $400 would eliminate the need for a price drop. This would also be the newer model that uses less power.

2 - Release a Battlefront themed console with a 1TB hard drive and be the newer model also at $400.

3 - Release the newer model black matte console with a 1TB hard drive and five games all via digital download. Could be called the PS4 exclusives bundle or something like that. Would include Knack, Killzone: Shadow Fall, Infamous: Second Son, LittleBigPlanet 3 and The Order: 1886. This console bundle would be for those who want their console to be solid black instead of based on any individual game. The five games would all be via download codes and all separate so that way, if the consumer wants to sell the codes themselves, they can do so. While Sony wouldn't like this, it's about getting the console in the consumer's home. Even at $20, the five games would be worth $100. Add in the extra 500GB in hard drive space as well as the free 30 day PS+ trial and that easily makes up for the lack of any price drop.

After all of that, I wait until early 2016 and announce an Uncharted 4 themed console with a 1TB hard drive for $400. Adding in a themed console, game and extra 500GB hard drive space easily makes up for the lack of a price drop.

At E3 2016, announce a price cut to $300 which becomes effective in July 2016. Reason being is so Morpheus can be released in September 2016. I don't see Morpheus being released before E3 2016 as that would be beyond stupid. Thus far, there's been nothing worth buying it for. Giving developers an extra few months would be a huge positive especially if one of those games is No Man's Sky. Another reason is so Sony can truly showcase it at their PlayStation Experience show (if they're doing it again) and at E3.

I also wouldn't release Morpheus anywhere near Uncharted 4 and SFV. It would be too much at one time. September is usually a slow month and would be perfect for Morpheus to be released. This would also allow Sony to have a few months for Holiday 2016 releases for Morpheus.

Sony doesn't need to rush anything at this point and to me, that could be their biggest downfall if that was to happen. Come January, Sony's focus should be on Uncharted 4 and SFV. No way would I release Morpheus around or before these two games get released. Both games will help sell PS4's and since a price drop would be pretty much a guarantee before Morpheus gets launched, I wouldn't do it until AFTER Uncharted 4 and SFV.

Sony is doing excellent despite no major AAA exclusives for the rest of the year. Until Dawn is a Heavy Rain/Beyond Souls type game and while it should be good, I don't think that it would sell the PS4. Uncharted Collection will probably sell the PS4 but its mainly going to be console themed bundles that make up the majority of the sales.

I personally have no interest in COD or Star Wars but even I know that both games are going to be big sellers so imagine how many consoles would be sold if they're themed and based on those two respective games?

Another reason being that March ends their fiscal year. A price drop at E3 2016 which would be near the end of Q1 in their next fiscal year as well as releasing Morpheus a few months later would be huge for that fiscal year. No reason to pack everything into the current fiscal year in my opinion.
 
Maybe the price drop this fall ($349) will be temporary and it goes back up to $399 after the holidays.

The real price cut ($299) will then happen when the PS4 Slim is announced at E3 2016 :3

The PS4 seemingly still has gas left at $399.
 
GopherD said:
"a strategic decision not to pursue scale in order to improve profitability"
Common theme in the results release. Let that guide your price cut discussions.
Click to expand...
Correct me if I'm wrong, but this specific bit actually belongs in the mobile section, whereas in the outlook for Gaming and Network they specify that the increased income (but less margin) reflected in the forecast change for the rest of FY 2015 is due to projected increased sales of PS4s (Forecast revised up by 0.5m, up to 16.5m which is 1.5m more than the FY14 forecast was)...

while its mobile division lost $184 million as sales slumped 16 percent year-on-year. Sony attributed its mobile struggles to a “strategic decision not to pursue scale in order to improve profitability.”
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Mmmh.
See it's funny but I can't imagine doing 1.7m more PS4s than last FY (where they already missed their forecast by .2), with 0 price drop, after 2 years.

Call me old fashioned like that :)
 
Does anyone else think that, looking at the chart in the OP, the PS4 and PS2 won't cross streams for about 9 months?

It looks to me that if it sells at the same rate for the next 3 then it won't cross, then the xmas bump which will raise it up again and then it might meet sometime in February maybe.

I don't follow this stuff that closely, I'm just looking at that chart and assuming a 28.5-29m announce in 3 months, then a bump to 35-36 by dec 31st.

Edit: their own projections seem to suggest it won't even cross by the end of March so ignore me.

Can't imagine it can stay ahead for the 6 months after that however.
 
Elandyll said:
in the outlook for Gaming and Network they specify that the increased income (but less margin) reflected in the forecast change for the rest of FY 2015 is due to projected increased sales of PS4s (Forecast revised up by 0.5m, up to 16.5m which is 1.5m more than the FY14 forecast was)...
Click to expand...
The initial forecast was increased revenue, increased hardware unit numbers and a lower margin than the prior fiscal year. Some people took this as indication of a potential price cut.

The new forecast is for increased revenue and a higher operating margin than the prior year, with an upward revision of hardware units over the initial forecast. This could reflect various scenarios.
 
Elandyll said:
Correct me if I'm wrong, but this specific bit actually belongs in the mobile section, whereas in the outlook for Gaming and Network they specify that the increased income (but less margin) reflected in the forecast change for the rest of FY 2015 is due to projected increased sales of PS4s...


Mmmh.
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It applies to TV, mobile and any low margin product within. The company would rather improve profitability at the expense of volume. PS is not immune to that thinking.

I don't think anyone outside would doubt there's a price cut due. I would just temper expectations somewhat.
 
GopherD said:
"a strategic decision not to pursue scale in order to improve profitability"
Common theme in the results release. Let that guide your price cut discussions.
Click to expand...

Jesus dude. You can't use a quote that specifically applies to the smartphone and tv business and apply it to PlayStation.

Thats not how it works. This quote is entirely out of context.
 
ZhugeEX said:
Jesus dude. You can't use a quote that specifically applies to the smartphone and tv business and apply it to PlayStation.

Thats not how it works. This quote is entirely out of context.
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Gopher knows whats up man. If he is hinting at something like this its usually for good reason. Never take his input lightly.
 
RexNovis said:
Gopher knows whats up man. If he is hinting at something like this its usually for good reason. Never take his input lightly.
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I'm not saying he is wrong. As even if you read my posts you see I've talked about Sony's hardware strategy in detail and how they don't need to drop the price etc...

But you can't quote one part of the release specifically about one part of the business and apply it to Gaming/the entire business.
 
ZhugeEX said:
I'm not saying he is wrong. As even if you read my posts you see I've talked about Sony's hardware strategy in detail and how they don't need to drop the price etc...

But you can't quote one part of the release specifically about one part of the business and apply it to Gaming/the entire business.
Click to expand...

Well yea which is why he clarified

GopherD said:
It applies to TV, mobile and any low margin product within. The company would rather improve profitability at the expense of volume. PS is not immune to that thinking.

I don't think anyone outside would doubt there's a price cut due. I would just temper expectations somewhat.
Click to expand...

And he would be in a position to know what the guiding strategy would be. His initial post was his way of dropping a hint saying as much

"Hey guys look at this thing Sony said. Y'all might wanna keep that in mind whilst discussing price drops"

or at least that's the impression I got.

But this is all besides the point here. I'll just say given Gopher interjections I'm now expecting a much more conservative pricing strategy out of Sony during this holiday season historical precedent be damned.
 
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