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NPD Sales Results for June 2015 [Up2: Batman, Splatoon]

So you think they raised captial to burn it by lowering the price of the PS4? I don't think they are going to take any losses on this machine. They are probably going to 350 this year (400 bundled) but I don't see why they wouldn't play the demand curve when they have a huge hit.
Because they would risk stagnating sales. By this holiday PS4 will have been on the market for two years; no console in the history of video games has gone without a price cut for its first two years. And in PS4's case, a tepid $50 price cut doesn't mean much of anything.

Sony traditionally makes price cuts with the world market in mind, minus developing countries, but since they actually chose to launch in developing markets so early this time (Brazil, Saudi Arabia, South Africa just to name a few), they have to take them into consideration as well. A $100 price cut would serve all the markets better more or less evenly, and loosens up consumer pockets so they can actually buy more games.

Because it's the games (and more recently, services) that bring in the profit, not the consoles. Always been that way and always will be.

The only way they lower the price to 299 is if they can make money selling the device at 299.
They can. It's called selling video games and services.
 
July 2015
Rocket League
Journey PS4
God of War III Remastered

August 2015
Everybody's Gone to the Rapture
The Talos Principle
Until Dawn

September
Mad Max
Metal Gear Solid V: The Phantom Pain
Destiny: The Taken King
Mighty No. 9

October
Uncharted: The Nathan Drake Collection
Tom Clancy's Rainbow Six Siege

Holiday
Call of Duty: Black Ops III
Star Wars: Battlefront
Beyond Two Souls
Heavy Rain
Hitman
Just Cause 3

Other:
The Witness
Battleborn
No Man's Sky
The Tomorrow Children

My buy list. Frightening.
 
They do not have the haloest halo of all times.
Case closed.

Oh, and 2 episodes of life is strange to come...

Christ, of course! And I've already preordered Tearaway Unfolded, MGS, Until Dawn and the UC Collection for the next two months, or so- plus, I've just bought Ethan Carter, and I'll all in for the summer of Play games.

If this is 'no games!' then give me less. Please, give me less. I have to work and study as well :(

Edit: I've just remembered I ordered Deception IV today.
 

fedexpeon

Banned
Crazy list of games...

Who the hell has that much time?
If you are into Japanese game, you are fucked.
If you are into AAA/Western game, you are fucked.
If you are into annualized series, you are fine.
Now if you are into everything, you need to request a ban from Gaf so you can play games.


I must be irrational right now, but too many games might be a bad thing for the industry.
I mean there are a limited amount of gamers to buy their product, and an even lower number with each sub-category/audience.
Each studio will get less money and share from the same targeted audience that their game might not break even for awhile when competing against other studios that are doing the same thing.
Even if all the gamers have unlimited resource, it will come down to intangible economic factors such as time valuation and consumer behavior when deciding what game can they should buy and their possibility of playing them over other game.
Meh, I think it is time to take my meds.
 

QaaQer

Member
I'm a casual reader of this stuff. I just know that everyone did not predict that part, because we had a huge thread about a PS4 price drop and there were loads of people that didn't even think this year was feasible.

I think they will drop the price this year by 100 dollars for the 500 GB model, if they still continue with it. If they phase it out it will probably just be 70 dollar.

Where are these manufacturing savings coming from? apu is on 28nm, cannot make heatsin or power supply smaller, gddr5 hasn't gone down in price, bluray drives are the same...I'm just not seeing where they can shave 1/4 to 1/5th off the production price.
 
Wii & Wii U say hi.

The Wii-U was sort of an odd situation, though, because even though it hadn't been officially price cut it was trivially easy to get it at lower prices than you would have even it there had been a price cut due to the retail channels being over-stuffed.
 

ZhugeEX

Banned
Meh, I think it is time to take my meds.

There are less games being released now for consoles than the last two generations. Physical video game releases have declined sharply and publishers are taking less experimental risks but only well calculated risks.

The console market, in terms of game releases contracted a lot recently. Yes more games are going digital only but it's not the same amount. Ultimately publishers are focusing on creating a small number of successful games rather than throwing lots out and seeing what sticks. This is a strategy that is working and publishers are now creating games that cater to broader demographics in a way that sales are good and additional content and services act as a complimentary revenue stream to ensure a games success. The ARPU has really increased this gen.

F0YzQHZ.jpg


The Wii-U was sort of an odd situation, though, because even though it hadn't been officially price cut it was trivially easy to get it at lower prices than you would have even it there had been a price cut due to the retail channels being over-stuffed.

Huh? That's what I was replying to lol. That there was no official price cut.
 
Huh? That's what I was replying to lol. That there was no official price cut.

Yeah, I'm just saying that in most cases the "official" price actually means something. The Wii-U's "official" price for a significant percentage of that period couldn't even be called a rough guideline due to retailers trying to jettison their stock, especially in the UK.
 

sörine

Banned
June 2008 hardware figures if anyone wants to a gen on gen comparison.

Wii: 666k
PS3: 405k (MGS4 bundle!)
360: 217k

DS: 783k
PSP: 337k

PS2: 189k
 

sörine

Banned
Yeah, I'm just saying that in most cases the "official" price actually means something. The Wii-U's "official" price for a significant percentage of that period couldn't even be called a rough guideline due to retailers trying to jettison their stock, especially in the UK.
In the US there weren't really many cases of retailers slashing prices outside clearing the launch Basic packages after NOA delisted them. The Deluxe sku essentially got a $50 price cut at that point by taking it's old pricepoint ($299) but that was all way back in Q3 2013 with no movement since.
 

Cess007

Member
sörine;172188470 said:
June 2008 hardware figures if anyone wants to a gen on gen comparison.

Wii: 666k
PS3: 405k
360: 217k

DS: 783k
PSP: 337k

PS2: 189k

Dat MGS4 bundle.

Edit. I see you edited that too :p
 

watdaeff4

Member
July 2015
Rocket League ("Bought")
Journey PS4 (Preordered)

August 2015
Everybody's Gone to the Rapture (Preordered)
Until Dawn (Will buy next year)

September
Mad Max
Metal Gear Solid V: The Phantom Pain

October

Assassins Creed Syndicate


Holiday

Call of Duty: Black Ops III
OR
Star Wars: Battlefront

Just Cause 3


Other:
Persona 5
No Man's Sky

Sheeeeeeeeeet, I need another job. And that doesn't even count I want to pick up Hyrule Warriors or the games I will likely get on XB1
 

Danthrax

Batteries the CRISIS!
Crazy list of games...

Who the hell has that much time?
If you are into Japanese game, you are fucked.
If you are into AAA/Western game, you are fucked.
If you are into annualized series, you are fine.
Now if you are into everything, you need to request a ban from Gaf so you can play games.


I must be irrational right now, but too many games might be a bad thing for the industry.
I mean there are a limited amount of gamers to buy their product, and an even lower number with each sub-category/audience.
Each studio will get less money and share from the same targeted audience that their game might not break even for awhile when competing against other studios that are doing the same thing.
Even if all the gamers have unlimited resource, it will come down to intangible economic factors such as time valuation and consumer behavior when deciding what game can they should buy and their possibility of playing them over other game.
Meh, I think it is time to take my meds.

Everything will be OK
 
Because they would risk stagnating sales. By this holiday PS4 will have been on the market for two years; no console in the history of video games has gone without a price cut for its first two years. And in PS4's case, a tepid $50 price cut doesn't mean much of anything.

Sony traditionally makes price cuts with the world market in mind, minus developing countries, but since they actually chose to launch in developing markets so early this time (Brazil, Saudi Arabia, South Africa just to name a few), they have to take them into consideration as well. A $100 price cut would serve all the markets better more or less evenly, and loosens up consumer pockets so they can actually buy more games.

Because it's the games (and more recently, services) that bring in the profit, not the consoles. Always been that way and always will be.

They can. It's called selling video games and services.

At PGW, they will probably announce a price cut down to $350. They are in the driver's seat. There is no reason why they should give up their margin to make it up by selling game and services when they can sell the console at a higher margin and sell games and services. Microsoft is years away from being able to compete against Sony on anything other than price.
 
sörine;172188470 said:
June 2008 hardware figures if anyone wants to a gen on gen comparison.

Wii: 666k
PS3: 405k (MGS4 bundle!)
360: 217k

DS: 783k
PSP: 337k

PS2: 189k
i said damn, videos game were so damn popular that year
 

benny_a

extra source of jiggaflops
Where are these manufacturing savings coming from? apu is on 28nm, cannot make heatsin or power supply smaller, gddr5 hasn't gone down in price, bluray drives are the same...I'm just not seeing where they can shave 1/4 to 1/5th off the production price.
Who says this has to be on the basis on manufacturing savings?
 
Sony is going to cut $100 off the price in the US and have less dramatic cuts elsewhere. UK will get £50 off, europe 50 euros etc.

But it is key that US gets the big $100 cut. That will light a real fire under XB1's backside and will probably ensure the PS4 sells more in November and December, even with Xbone at the same RRP (and a free game).
 

Fafalada

Fafracer forever
ZhugeEX said:
Anyway, here are PS3 price drops if my memory serves me well.
Well 60GB got a price drop for a month before it was discontinued if that counts (but then that whole first year was probably the messiest in terms of SKUs of any console in history).
I still find it amusing that 'technically' both PS1 and PS2 had price drops earlier than PS3 though.
 

ZhugeEX

Banned
Just a few things I'd like to post here.

  • AMD say that the ASP declines of their semi custom chips is pre negotiated with Microsoft and Sony for the lifecycle.
  • AMD said that there will be a die shrink in the future but did not say when.
  • AMD stated that they expect production in Q3 to lead to higher inventory YOY, what this means is that it looks like we could see more consoles being shipped this holiday season than the last holiday season.
 
Sony is going to cut $100 off the price in the US and have less dramatic cuts elsewhere. UK will get £50 off, europe 50 euros etc.

But it is key that US gets the big $100 cut. That will light a real fire under XB1's backside and will probably ensure the PS4 sells more in November and December, even with Xbone at the same RRP (and a free game).

$100 this year?

Avatar bet?

BTW... you think a "real fire" isn't already going at MS?
 

joecanada

Member
Sony is going to cut $100 off the price in the US and have less dramatic cuts elsewhere. UK will get £50 off, europe 50 euros etc.

But it is key that US gets the big $100 cut. That will light a real fire under XB1's backside and will probably ensure the PS4 sells more in November and December, even with Xbone at the same RRP (and a free game).

349.99 PS4 will hit first.
 

ZhugeEX

Banned
Everyone here keeps saying Sony will drop the price $50, Sony will drop the price $100, Sony won't drop the price etc... When NO ONE has considered that maybe Sony will increase the price.

I mean think about it, the PS4 is selling faster than the Nintendo Wii U and is more popular that Flixster. With that sort of momentum I think they can get away with a $50 price increase.

You guys need to think outside the box more.
 

Abdiel

Member
Everyone here keeps saying Sony will drop the price $50, Sony will drop the price $100, Sony won't drop the price etc... When NO ONE has considered that maybe Sony will increase the price.

I mean think about it, the PS4 is selling faster than the Nintendo Wii U and is more popular that Flixster. With that sort of momentum I think they can get away with a $50 price increase.

You guys need to think outside the box more.

You're such a smartass. But it made me laugh.

For my perspective, I feel that Sony will go for $100 price cut.
 

Loudninja

Member
Everyone here keeps saying Sony will drop the price $50, Sony will drop the price $100, Sony won't drop the price etc... When NO ONE has considered that maybe Sony will increase the price.

I mean think about it, the PS4 is selling faster than the Nintendo Wii U and is more popular that Flixster. With that sort of momentum I think they can get away with a $50 price increase.

You guys need to think outside the box more.
Agreed this is a twist no one will see coming its genius!
 

joecanada

Member
Everyone here keeps saying Sony will drop the price $50, Sony will drop the price $100, Sony won't drop the price etc... When NO ONE has considered that maybe Sony will increase the price.

I mean think about it, the PS4 is selling faster than the Nintendo Wii U and is more popular that Flixster. With that sort of momentum I think they can get away with a $50 price increase.

You guys need to think outside the box more.

Hmmm so you are saying that Sony will announce to consumers that the PS4 is currently undervalued, and that upcoming price increases are imminent , then push the price up and declare they are selling out / having a manufacturer shortage.

Ebay prices will skyrocket, demand will go up, and people will trample each other at Walmart....

I like it! great work baxter!
 
Everyone here keeps saying Sony will drop the price $50, Sony will drop the price $100, Sony won't drop the price etc... When NO ONE has considered that maybe Sony will increase the price.

I mean think about it, the PS4 is selling faster than the Nintendo Wii U and is more popular that Flixster. With that sort of momentum I think they can get away with a $50 price increase.

You guys need to think outside the box more.

They should start somewhere small where we won't notice, like Canada ;)
 
$100 this year?

Avatar bet?

BTW... you think a "real fire" isn't already going at MS?

I can make that bet! They are forecasting more units for this FY with less profit. Also they are forecasting revenue to go slightly down. Considering that if they keep current price and actually hit their hw and sw targets I have hard time to see how they could make less revenue this year. Also their foreign exchange rate assumption for FY15 is better than for FY14 so that doesn't explain lower revenue/profit targets either.
 
Wii & Wii U say hi.
I'd say those were special cases.

One for good reasons, the other for horrible reasons.

At PGW, they will probably announce a price cut down to $350. They are in the driver's seat. There is no reason why they should give up their margin to make it up by selling game and services when they can sell the console at a higher margin and sell games and services. Microsoft is years away from being able to compete against Sony on anything other than price.
You're only looking at this from a small picture. Sony isn't just competing against Microsoft, just like how Microsoft isn't just competing against Sony. They need to compete with smartphones and tablets and free online gaming for people's time and money, and they're doing pretty good ATM, but at their current price it's just a matter of time before those other options start to nudge away and win out against Sony's current high.

In a more immediate sense they'll be competing against Nintendo's new system next year or year after next, though I'm willing to bet it's coming out next year. After PS4 and XBO we should get used to systems being announced and released in the same year these days.
 
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