[dallas27]

Does it make sense to anyone that as the price of Bluray players fall quickly over the coming year (we hope) that this should lower the price of the PS3?


Shouldn't the PS3's price drop quicker than past consoles because of this? also the HD, will be cheaper and hopefully the cell.

 

[rdank]



Quote:
Originally Posted by dallas27 /forum/post/0


Does it make sense to anyone that as the price of Bluray players fall quickly over the coming year (we hope) that this should lower the price of the PS3?


Shouldn't the PS3's price drop quicker than past consoles because of this? also the HD, will be cheaper and hopefully the cell.

Not really. It's not like they will always sell it for XX loss. Market demand will drive the price more than anything inside.

 

[chap]

They are loosing money on it still. I don't think they can afford to drop the price until the hardware inside drops enough for them to make money on it.

 

[spwolf]



Quote:
Originally Posted by dallas27 /forum/post/0


Does it make sense to anyone that as the price of Bluray players fall quickly over the coming year (we hope) that this should lower the price of the PS3?


Shouldn't the PS3's price drop quicker than past consoles because of this? also the HD, will be cheaper and hopefully the cell.

well PS3 should be more expensive than just an player... thats why it is such an good deal now...

 

[adelx]

according to Sony CEO, he said that they will break even in the end of the year. now I do expect PS3 to drop $50 at the end of this year.

 

[Hughmc]

2 years before the 600.00 60g goes below 499.00. and the 20g below 399.00.

 

[dsg2003gt]

NO! Sony used life-cycle costing and it will not drop for quite a while. Supply/Demand has no effect when priced using lifecycle costing. Sony also sets a price floor with authorized retailers. So once again...supply/demand and technological advances have no affect on the price.

 

[rdank]



Quote:
Originally Posted by dsg2003gt /forum/post/0


NO! Sony used life-cycle costing and it will not drop for quite a while. Supply/Demand has no effect when priced using lifecycle costing. Sony also sets a price floor with authorized retailers. So once again...supply/demand and technological advances have no affect on the price.

No effect? If no one bought one for 6 months, you don't think they'd drop the price?


Seriously, supply and demand does factor in. Perhaps not as much as some of might assume, but it does factor in.

 

[aeonblue]

I think the price will drop $100 by the end of the year. There are multiple parts which were low yield at the time but will be very cheap in 12 months.

 

[Darth Vedder]

Likely that a PS3 price drop is dependent on a 360 price drop. If MS drps the price of the 360, Sony will follow suit. But I dont think Sony will be the one to initiate the drop.

 

[kharrigan]

According to CNet News , Sony's expecting to break-even on PS3 production at the end of 2007!


-KLH

Ken H*rrigan

 

[jw68]

They should hit a better economies of scale once production ramps up. By the end of the year, hopefully BD drives will be a fraction of their current cost and IBM can work up a die shrink of Cell. But again like mentioned previously, still may not happen as the 600 may just be covering costs.

 

[fanerman]

Do consoles typically sell for a profit after just one year?

 

[wreckshop]

theoretically, PS3 should expect to see large reductions in price since the BD drive probably the single most expensive component and is nowhere near commodity pricing. however this will be offset somewhat by the standard hard disk.


Sony undoubtedly belives it can drop the price of the BD drive very rapidly because if not it would be suicide to be priced so high relative to its nearest competitor over PS3s lifetime.

 

[spwolf]



Quote:
Originally Posted by kharrigan /forum/post/0


According to CNet News , Sony's expecting to break-even on PS3 production at the end of 2007!


-KLH

Ken H*rrigan

yep.... but people need to understand that breaking even means selling hardware at cost... not making money from billions you invested in r&d and production.


So sony wont be making money from PS3 for a while now...

 

[rdank]



Quote:
Originally Posted by fanerman /forum/post/0


Do consoles typically sell for a profit after just one year?

It's been rumored that the 360 has already fallen below MSRP to produce. I don't know if this is accurate but it was floating around for awhile.


I really have no idea how it typically works with consoles, but given their 5 year cycles, I would have guessed longer than a year.