Sony Continues to Bleed!!!!

[TIm]

I think Nintendo is the only one that's not bleeding at this point. I may be wrong but I thought nintendo made money on every Wii sold.. Anyone care to elaborate on that?? With that said I really think Sony needs to do a few things if they won't drop the price. I think they should do a Create your own bundle... include 2 games of your choice or from a list of highly rated games, Drop the price of accessories" Let say the Ps3 controller keypad is 49.99 and they make 30.00 on it. Drop it 10 bucks", or give you a rebate through the mail of some sort to choose a blu ray movie as well as 1 game of your choice. They will still make profit but may sell alot more at the same time. I think the newest Best buy bundle is great however, Those wouldn't be my top choice games. I am into sports games mostly... So I really don't feel like spending 400 at this point + a couple of games. that's 520.00 plus another controller. I really think if they can strike deals with different stores or game manufacturers, the 399 price point won't be so bad. In fact it ultimately isn't a bad price at all but again, when you add games, movies, and accesories it really hurts the wallet. Parent just can't do it.. Maybe they have a little boy and girl, they would have to buy each something they like and it would cost crazy money. But with a bundle of your choice, they can get a game for the girl and a game for the boy

[AtlantaFalconFan]

Quote: Originally Posted by bkfount

No, the PS3 still cost 10% more than they sold it for in May, and it likely still does. While the production price has been coming down since the $800+ it cost them at launch, the only way to see a 70% drop in production costs is from the rumored slim model. They likely aren't even making the old models anymore, but they haven't started selling the slims yet to benefit from the savings. After losing billions of dollars, I could see them sitting at $399 for a slim ps3 that costs them $240 to make, at least until all of the fat ps3's are gone. Plus, they could use the profits from the Slim to compensate for the increased losses they'd take by price dropping the fat ps3's.

the thing is technology changes and gets cheaper during time on certain stuff and i have seen on yahoo finance even confirming and talking about the 70 percent so it could be true because the stuff they used for the ps3 2 years ago isnt the same price as it is now....

[bkfount]

Quote: Originally Posted by TIm

I think Nintendo is the only one that's not bleeding at this point. I may be wrong but I thought nintendo made money on every Wii sold.. Anyone care to elaborate on that??

Nintendo was making something like $6 on every wii sold when the console launched. However, their top games are all first party, so they lose out on some licensing revenue that MS and Sony get from games like GTA4 and CoD selling so well. I'm sure they sleep well at night regardless.

[bigfnjoe96]

The bleeding is forcing SONY to cut prices on all their products including the PS3:

Quote:

EXCLUSIVE: In a desperate move to shift stock Sony is set to slash the price of Sony Bravia TV’s, Blu ray players and their Sony Playstation consoles according to a senior executive inside a major retail partner of Sony. The move could spark a retail war said one observer. Known for price gouging, the move comes as Sony struggles up against a surging Samsung and tough competition from both LG and Panasonic, who in past months have started to take market share away from Sony in the digital camera and handycam market as well as the all important TV market. The news that Sony is set to slash prices has already leaked out to their competitors, with Mark Leathan the marketing manager of Samsung's consumer electronics division confirming that they have also been told that Sony is set to make savage price cuts. It has also emerged that both Companies will heavily promote HD and Full HD connectivity. With Samsung set to promote Full HD connectivity between their Blu ray players, Samsung phones with DLNA connectivity, home theatre kits, Samsung HD camera's and Samsung TV's spanning LCD, LED and plasma. The new Samsung Full HD and HD TV's, now include internet connectivity in several of their models as well as widgets TV, and in the future their TV's could include IceTV an electronic program guide that is also capable of delivering movies from the likes of Blockbuster as well as overseas TV programs from a multitude of suppliers. Leathan said "HD and Full HD is an important part of Samsung's DNA we have HD connectivity between all our devices including mobile phones Blu ray players and our TV's which include technology that senses an HD connection. We are currently talking to IceTV and we will be offering new network content in the future". "We are aware that Sony is looking to slash prices as we talk to the same retailers however we are not worried as we intend to launch extensive marketing activities going into the peak Xmas New Year period. We also have several new products coming that will excite the market". Also set to get aggressive running into the peak buying Xmas is LG who according to ChannelNews sources have been buying up TV media opportunities during the past few weeks. Warren Kim the product manager for TV at LG said "I cannot comment on what we are launching but yes, we will be launching new products and yes we have been buying up media running into the peak buying period". Despite the rumoured price cuts and aggressive marketing from vendors, one Harvey Norman franchisee has warned that discounting is not necessarily a good thing. "There is very little margin in TV's and the last thing we need is less margin. Sony has a problem but discounting is not the answer. I am happy to sell less Bravia TV's or Sony Blu ray players especially if they have a higher yield. The biggest problem for Sony is brand perception. Where the brand was strong 18 months ago it is not as strong today. Consumers are aware that Sony products are expensive and with some this is not a bad thing, however many people are turning away from the brand because of aggressive marketing by the likes of Samsung and in particular Panasonic". Earlier this week Sony group sales manager Jeremy Senior was reported to have said "One thing we're very conscious of with Christmas is, it's not just the sell-in to November and lead up to 25 December, but January is also a very strong sales period. We want to make sure that we've got offers for that time of the year"."

http://www.smarthouse.com.au/TVs_And...ustry/T9R5R7S5