Sony Has Cut PS3 Production Costs By 70 Percent

[JWAN]

Hasn't Sony continuously stated that the lifespan of the PS3 would be over 10 years?

but Sony's system will be around for longer than the 360 or Wii. (According to Sony, at least.)

They did a similar thing with the PS2 and it took them about 5 years to start turning a profit. I mean, its up to them to make another system and if they say they wont build another one for 10 years just to say they made some money then Ill trust them.

The level of trust you guys give is astonishing.

Its already been stated that there will be a Wii2. And the Xbox3 is in development phase...

As for the next Sony console...the PS4? There is no confirmation that they have a release date set for it or that they are in development...

But rumors abound already that Intel has been signed on to develop the next console after the company dumped Nvidia (perhaps over just how the "difficult to develop games on this console" plan backfired). [http://www.google.com/#hl=en&q=intel+sony+playstation&aq=f&oq=&aqi=&fp=-Pw1cEIpNGU]

If they already have their next graphics supplier slated, doesn't that mean they are already making preparations? Intel will need some time to get a graphics card ready sure....but the company is HUGE compared to Nvidia...

I give them that level of trust (not because I like them, I hate Playstation in general and I love Sony TV's) because if they don't try to turn a profit on the PS3 that part of their company will go bankrupt. You cannot constantly produce something and never turn a profit without consequences. Business 101, if your product is not turning a profit and you make more than you can sell stop production immediately and declare bankruptcy to protect your personal investments.

Think of it like this, from a diamond mine it costs me $1000 to pull out a $250 diamond. I turn around and sell the rock for $600. Am I making a profit? Should I keep mining in that place? Answer these questions.

 

[hansari]

The irony, of course, is that you're trusting rumors.

You still get a point Credge

But you do realize that this is highly unusual given Sony's past business model? The PS3, from what I understand, had many companies racing to impress Sony with their graphics cards. But this time...and "8-10 years" ahead of time they made this choice...

Well your still right, its all rumors . Rumors that neither Sony nor Intel seem eager to quash despite how Sony has been eager to do so in the past with such things as the controversial "backwards compatibility" rumor...

Rumors aren't truth. Developers are just now getting the optimum out of these systems, why the hell is everyone so eager to push on to the next stage?

But I have to say, I'm skeptical of the idea that for the next 8-10 years, Sony will not release another console.

Forget about the Wii2, whose game selection won't compete with the PS3...(not to say they aren't trying now by releasing high-end graphic rated "M" games now). Think about their main competitor Microsoft.

If another Xbox comes out, one that can one-up the PS3's present capabilities (possible considering how the passing of time always means better technology and cheaper production of older tech), do you think Sony can afford not to react?

Maybe it sounds ludicrous that Microsoft would make such a move. But weigh the pro's vs con's. Would such a move raise their already high standing in the video game market? Isolate the PS3? Create a standard that brings PS3 graphics to what developers consider a more user-friendly console?

Think of it like this, from a diamond mine it costs me $1000 to pull out a $250 diamond. I turn around and sell the rock for $600. Am I making a profit? Should I keep mining in that place? Answer these questions.

I don't prescribe to the sort of long-tail [http://en.wikipedia.org/wiki/The_Long_Tail] logic that Sony is placing its hopes in. Will they really be able to make a profit this late in the game? What number of gamers are still running around trying to buy a console? Even if they are just trying to cut their losses as best they can, how much debt will it still amount to in the end?

And even if a consumer decided to purchase a PS3, what incentive does he have for buying it straight from Sony brand new? What will stop him/her from buying a refurbished model? What about buying a console second hand from another gamer?

 

[JWAN]

The irony, of course, is that you're trusting rumors.

You still get a point Credge

But you do realize that this is highly unusual given Sony's past business model? The PS3, from what I understand, had many companies racing to impress Sony with their graphics cards. But this time...and "8-10 years" ahead of time they made this choice...

Well your still right, its all rumors . Rumors that neither Sony nor Intel seem eager to quash despite how Sony has been eager to do so in the past with such things as the controversial "backwards compatibility" rumor...

Rumors aren't truth. Developers are just now getting the optimum out of these systems, why the hell is everyone so eager to push on to the next stage?

But I have to say, I'm skeptical of the idea that for the next 8-10 years, Sony will not release another console.

Forget about the Wii2, whose game selection won't compete with the PS3...(not to say they aren't trying now by releasing high-end graphic rated "M" games now). Think about their main competitor Microsoft.

If another Xbox comes out, one that can one-up the PS3's present capabilities (possible considering how the passing of time always means better technology and cheaper production of older tech), do you think Sony can afford not to react?

Maybe it sounds ludicrous that Microsoft would make such a move. But weigh the pro's vs con's. Would such a move raise their already high standing in the video game market? Isolate the PS3? Create a standard that brings PS3 graphics to what developers consider a more user-friendly console?

Think of it like this, from a diamond mine it costs me $1000 to pull out a $250 diamond. I turn around and sell the rock for $600. Am I making a profit? Should I keep mining in that place? Answer these questions.

I don't prescribe to the sort of long-tail [http://en.wikipedia.org/wiki/The_Long_Tail] logic that Sony is placing its hopes in. Will they really be able to make a profit this late in the game? What number of gamers are still running around trying to buy a console? Even if they are just trying to cut their losses as best they can, how much debt will it still amount to in the end?

And even if a consumer decided to purchase a PS3, what incentive does he have for buying it straight from Sony brand new? What will stop him/her from buying a refurbished model? What about buying a console second hand from another gamer?

The only way they will get a profit is if their technology is picked up in lets say blu-ray players, that will make their production cheaper (I think that's what happened)because the tech isn't rare anymore. The problem is that if their tech becomes cheaper then they need to sell MORE units to cover their early losses. Its a risky maneuver and in the end they may make a profit but its going to be from Sony blu-ray players and not PS3's.

They might make it but I don't think the PS3 is going to start selling that much.

 

[MultiPurposeBlue]

my PS3 just broke and to get it "repaired" from Sony was going to be 150 USD, I have no Warranty, so i came the this conclusion that the PS3 was not as expensive to make as i thought

 

[Xris]

As long as this doesn't affect the PS3's quality, it'd be good news. I've been waiting for a price cut for ages now.

 

[mattttherman3]

Or they are pulling a microsoft and using cheap ass parts that overheat and die after 3 years of casual gaming.

 

[TsunamiWombat]

Or they are pulling a microsoft and using cheap ass parts that overheat and die after 3 years of casual gaming.

...3 years is longer then some peoples computers go without having parts replaced/updated.

I'm not one of those people of course, but the performance of my pc gaming shows.

I'm all for a next console generation as long AS THEY HAVE BACKWARDS COMPATABILITY. FFS!

 

[tehroc]

This is just giving more fuel to Robert Kotick's demands for a PS3 price drop. It's 70% cheaper to produce yet it's still same price?

 

[Jumplion]

This is just giving more fuel to Robert Kotick's demands for a PS3 price drop. It's 70% cheaper to produce yet it's still same price?

It was Bobby Kotick, he (and Activision) are hypocrites as they are raising the price of MW2 for no reason "in this economy", and Sony has to make a profit off of it eventually, right? Just because it's (allegedly) cheaper to produce does not mean you can automatically lower the price, especially in Sony's situation.