wapplew
Member
You know, some people keep saying this, but why exactly would 'premium' mean that they are going to price it above mass market affordability?
Premium only means that its going to be priced above the current PS4. So what is the difference between lowering the current PS4's price to say 249, and affording the NEO at 399 for example over affording the NEO at the XB1's price of 499?
I think that would negate sales a lot more than give people the view of a premium unit
Because they are first into premium console market, the price they set will leave a permanent effect, setting expectations for future premium product.
They see a potential market where core users willing to pay more, an opportunity to have a high margin product sit alongside the mainstream product.
If you price it as mainstream product, it leave very little room for future price cut, it defeat the purpose of create a high margin product line.
They are not expecting volume, they are expecting high return. It's not a new generation where they need to boost the install base asap, Neo is here for the profit.
Just look at Nvidia. When you have no competition in the market you set high price to maximize profit.
They create a premium line (Titan) set a high bar price and test the limit of the enthusiast.
Neo will be similar, the bar have to start high and adjust according to reception. Never start low when you have no completion.