Sony makes money. - Page 2 - PSP-Forum.com

VAMP · 04-15-2007, 07:57 PM

True. They really only start making money on their consoles toward the end of their life cycles when the figure out ways to lessen manufacturing costs.

samestory98 · 04-15-2007, 10:06 PM

Quote:

Originally Posted by VAMP

Another thing that you're missing is that with every PS3 sold, Sony is actually losing money. If they lowered the price they would lose even more money. The only way they'll drop the price of it is if they find ways to manufacture it for less money.

Ryder's right, they make lots of cash from the PS2. This is so, mainly, because since it has been out for a few years, they've found ways to make it for less money and they're actually turning a profit on every unit sold.

Another way they make lots of money in their games division is with software sold, far more than hardware.

yeh, i know they're loosing money, thats why if i was right (they're making money from the PS3) then it wouldnt make sense.

VAMP · 04-16-2007, 02:14 AM

They aren't. It doesn't matter how many units of hardware they sell. The software is what makes them money. If they move enough software then that's when they'll see profits from the PS3 :wink:

Emram · 04-20-2007, 12:52 PM

You can't sell games if no-one owns the hardware to play it on. No one will buy the hardware if the price is too high. Therefore, if the hardware is good enough for people to actually want to buy it, it needs to be sold at a loss (if you could still sell it at a profit, chances are it would be rubbish, simply due to what we all now expect from a console). The trick is to drop the price enough so that people want to buy it, but to keep the price high enough that you limit your loss.

It's what's known as a loss leader - you lose some money now to make absolutely truck loads of money later. Constantine is right, all consoles make a loss. Eventually, if the console is succesful enough, and stays in production for long enough, the manufacturing price comes down and they eventually start making money.

The PS2 was probably a bit different, as DVD was already available, and (as I understand it) a number of the internal gubbins were more or less lifted from DVD players and the PS1 (if I'm wrong, don't shout, please just point it out to me in a calm manner and correct me. And put a :lol: if you absolutely must laugh).

How much has the PSP dropped in price since it was released?

VAMP · 04-20-2007, 11:22 PM

YOU'RE ABSOLUTELY WRONG YOU D*MN F*CKHEAD. jk :lol: :lol:

No one will shout at you at the forum, they'll just correct you in the most smartass way possible. But you're right anyway. Kind of the point I was trying to make, you made it a lot better though. :wink:

BTW, I think the PSP's dropped $30.00 since it was released.

Constantine · 04-20-2007, 11:51 PM

Core pack has dropped 30. Value pack has disappeared.

Constantine

04-20-2007, 11:51 PM	#16 (permalink)
Constantine PSP-Forum Demi-God Join Date: Jul 2005 Location: A PSPirate on the high-seas of treason Posts: 2,734	Core pack has dropped 30. Value pack has disappeared. Constantine __________________

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04-15-2007, 07:57 PM	#11 (permalink)
VAMP PSP-Forum Demi-God Join Date: Mar 2006 Location: usoffna Posts: 2,710	True. They really only start making money on their consoles toward the end of their life cycles when the figure out ways to lessen manufacturing costs.

04-16-2007, 02:14 AM	#13 (permalink)
VAMP PSP-Forum Demi-God Join Date: Mar 2006 Location: usoffna Posts: 2,710	They aren't. It doesn't matter how many units of hardware they sell. The software is what makes them money. If they move enough software then that's when they'll see profits from the PS3 :wink:

04-20-2007, 12:52 PM	#14 (permalink)
Emram Hi! I'm new around here... Join Date: Mar 2007 Posts: 12	You can't sell games if no-one owns the hardware to play it on. No one will buy the hardware if the price is too high. Therefore, if the hardware is good enough for people to actually want to buy it, it needs to be sold at a loss (if you could still sell it at a profit, chances are it would be rubbish, simply due to what we all now expect from a console). The trick is to drop the price enough so that people want to buy it, but to keep the price high enough that you limit your loss. It's what's known as a loss leader - you lose some money now to make absolutely truck loads of money later. Constantine is right, all consoles make a loss. Eventually, if the console is succesful enough, and stays in production for long enough, the manufacturing price comes down and they eventually start making money. The PS2 was probably a bit different, as DVD was already available, and (as I understand it) a number of the internal gubbins were more or less lifted from DVD players and the PS1 (if I'm wrong, don't shout, please just point it out to me in a calm manner and correct me. And put a :lol: if you absolutely must laugh). How much has the PSP dropped in price since it was released?

04-20-2007, 11:22 PM	#15 (permalink)
VAMP PSP-Forum Demi-God Join Date: Mar 2006 Location: usoffna Posts: 2,710	YOU'RE ABSOLUTELY WRONG YOU DMN FCKHEAD. jk :lol: :lol: No one will shout at you at the forum, they'll just correct you in the most smartass way possible. But you're right anyway. Kind of the point I was trying to make, you made it a lot better though. :wink: BTW, I think the PSP's dropped $30.00 since it was released.