I see. If that doesn't cut it, then a low capicity HDD that is still in mass production (i.e., no 20GB drives) could still lower cost over a 500 GB standard.
Originally Posted by PENDRAG0ON
Their gaming division is a bright spot now, but just a few years ago it was bleeding a billion or more per year. The PS3 really hurt Sony and it will take many years of high profits to make back the losses they took from 2006 through 2010 on the PS3 hardware. From 2011 through mid 2012 the losses were minimized greatly. (maybe even to the point of being a minor profit on the hardware, the games are what offset the losses at this point)
Like I said, the hardware finally became profitable with the super slim, it took 6 years for Sony to finally make a PS3 that truly makes them money on every unit sold.
Sony will be looking at how they can build this system where costs will come down quickly. A system that is profitable from day one will be their target. Sony will want to keep their Playstation division profitable.
I don't see them shipping a HDD free model, they aren't that expensive to include. (cheaper than PS3 BC) and they will include a form of Plus with the system, that trial really hooks people into paying for a full year.
And considering I can build a PC with close to the estimated specs of the PS4 for under $400 myself at retail pricing, I still say that the PS4 can easily be profitable at $400. I used to say $300 until the ddr5 rumor hit, I adjusted my estimated price based on it.
There is far more bringing money into to the PlayStation division than just the flagship hardware. The first slim cut costs quite a bit, all while revenues continued to generate from every software and DLC sale (retail or PSN), peripherals (DS3 controllers still cost $55 MSRP),publishing fees, PS2 sales (hardware/software), PSP sales (hardware/software), etc.
As those last two have slowed down, the PS3 itself has improved in pure profitability. The net
productivity of the division as a whole has not been in bad shape at all. Other divisions have been the primary source of losses for the corporation.
I agree on the PS+ point - it makes more sense to give trials. And if you agree that they want the PS4 to be profitable early, then that means savings from lowered production costs aren't all passed down to the consumer price. Remember, Sony usually adds free stuff to their hardware to add value before cutting the price outright.
Lastly, it doesn't work to do an apples to apples comparison with the PC version of components. There are a lot more issues involved that affect costs. The APU is guaranteed to be customized, meaning it gets its own production line.
Customizing it costs money, and producing it apart from established, mass market parts costs money. We won't even be able to do diect comparisons between the abilities of PC hardware part XYZ and console hardware part XYZ because these components work a lot more efficiently in a closed console environment when compared to how they may work in a PC.Edited by joeblow - 2/4/13 at 2:06pm