Is Sony still making money on PS Vita sales?

#11OtakuGameraPosted 1/2/2013 9:22:46 PM
There not losing money like nintendo, if they have a price drop like them then yeah they'll be losing money, I think vita cards are making up for it as well.

??????

http://www.examiner.com/article/sony-to-sell-playstation-vita-for-a-loss-profitable-3yrs

http://www.giantbomb.com/news/nintendo-losses-continue-but-3ds-now-profitable/4295/

meaning eventhough nintendo slashed the 3ds by 80$, it still managed to turn a profit a few months later. whereas vita is sold at a loss from the get go.
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#12LuminescentRulePosted 1/2/2013 9:34:02 PM
From: OtakuGamera | #001
http://www.examiner.com/article/sony-to-sell-playstation-vita-for-a-loss-profitable-3yrs

http://www.giantbomb.com/news/nintendo-losses-continue-but-3ds-now-profitable/4295/

meaning eventhough nintendo slashed the 3ds by 80$, it still managed to turn a profit a few months later. whereas vita is sold at a loss from the get go.


Source for where it says that the Vita is sold at a loss?
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#13LuminescentRulePosted 1/2/2013 9:39:33 PM
From: Eternal_Strike | #003
Mikeugame posted...
calvinliang posted...
I heard that they were loosing money from the beginning.
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There not losing money like nintendo, if they have a price drop like them then yeah they'll be losing money, I think vita cards are making up for it as well.


Im a Nintendo fan boy and i don't even believe Nintendo selling 3ds at a loss if anything it should be at a 150 price point.Vita is pretty much a tablet where 3ds is kinda like a ps2.
granted i like ps2 ALOT


Like a PS2 sans the great library.
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#14GeassMasterPosted 1/2/2013 9:51:18 PM
GonTo30 posted...
Mikeugame posted...
calvinliang posted...
I heard that they were loosing money from the beginning.
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There not losing money like nintendo, if they have a price drop like them then yeah they'll be losing money, I think vita cards are making up for it as well.


The 3DS is profiting though.


Not anymore. Since it's going to price drop again.

I remember hearing the Vita was pretty close to profitable day one. It should be making profit on each unit now.

Sony has mentioned they were already working on making the Vita a lot cheaper so they could drop the price anyway. I think in a few months to a year we'll see a cheaper "slim" Vita. There has to be a reason why Japanese devs are all of sudden supporting it again( and with rather large releases, like Project Versus J and One Piece Warriors 2).
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#15xfactorPosted 1/2/2013 9:53:05 PM
I doubt so. They said they are aiming for profit within 3 years, and that was before the vita launch. Since then they have been decreasing their vita sales forecast every year, which will only mean they will take even longer to have the profit. 5 years? 6 years?
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#16GoIrish80Posted 1/2/2013 9:56:42 PM
What do you think, that they ONLY produce vitas that people actually buy?

Completely ignorant topic.
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#17LuminescentRulePosted 1/2/2013 9:59:29 PM
From: Sxmfct | #013
Company makes game for system A, 5% of owners buy it
Company makes game for system B, 5% of owners buy it

System A sold 1million units
System B sold 10million units

So yes, yes it does matter how many units a system sells. Why make a game for system A when you can make one for system B and make a greater profit?


But it also depends on many people are buying software on the platform and how much they're spending on it.
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#18FindmeElseweyrPosted 1/2/2013 10:00:49 PM
You aren't thinking of it the right way.

Let's say for example, I make a handheld, and it costs me $5 to produce it.

I sell it for $30, so I'm making profit on it. Now, it'd be stupid of me to only make one, at such a cheap price, so I make 100 of them.

People start making apps and games for my handheld, and so that draws in buyers, so I'm making money, and I make more.

The guy down the street, he uses cheaper materials, and so it only costs him $2.50 to make a handheld. He sells his for $15. Now this guy has recognition, and he's pretty popular, so they decide to go and buy his handheld.

The developers see that he's selling more than i am, so their apps and games will reach a wider audience, and sell more (therefore making them money). These developers are already dedicating time to other console projects, so they can only work on 1 handheld game/app at a time, so they have to choose.

The head honcho says, "this isn't rocket science people! The bigger audience is the better bet; more people = more chances of them buying our products!" so they decide to take their projects and put them on the other guy's handheld instead.

Now because of THIS, even MORE people start buying that cheaper handheld. I still have a loyal few people buying mine, and I'm still making money, but I"m not making nearly as much as I could have, and if I don't sell all of my units, I'll actually be in the hole.

Cost to produce = $5.
I ended up making 10,000 units. = $50,000 investment.

I sold 1,000 at $30/ea. = $30,000. So I'm still in the hole $20,000. Per day, i'm selling 3-5 handhelds. So I average 21-35 per week, and 84-140 per month. I need to sell 1667 to BREAK EVEN, due to the cost of producing.

So am I making money per unit sold? Yes, I am. Am I in the clear? No, I am not. I won't be in the clear for a while.

You also have to take into consideration R&D, which costs a lot too. For example, if I added R&D to my little example, It'd be an investment of $150,000.

My competitor isn't trying too many new things, so his R&D cost is a lot lower. He also has a much lower production cost, so it's less risky for him to invest more. I'm still making more money per unit than he is - but if he's selling more than me by such a large margin, in the end he's still making more money.

(I actually don't know how much sony is making per unit either, nintendo may actually be making more per unit.)
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#19darkphiresagePosted 1/2/2013 10:01:33 PM
the vita costs $160 to make. they make a profit from the initial sale, but i dunno about once you add marketing/assembly/etc.
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#20MikeugamePosted 1/2/2013 10:15:01 PM
I seen know ok, anyone seen advertisements of the vita lately cause I haven't.
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