Does Sony want Vita to fail?

#41kingofall214Posted 1/30/2013 11:41:55 AM
KogaSteelfang posted...
kingofall214 posted...

I never said it was illogical for a price drop to happen. It will happen. Probably this year. It will happen though because the cost to make the vita will drop. Not because it isn't selling well because it is selling well to Sony. The idea is to sell the vita while it makes a certain % profit per console sold. Lets just use those numbers above.

vita costs 180 to make. They sell it for 250. 180/250 =.72 move the decimal over 2 and you got the profit percent. They are currently making a 72% profit

Now if the cost to make a vita is drops to lets say $120 then Sony wants to continue making a 72% profit they will drop the price to make that. So 120x0.72=86.4 120+86.4-206.4 rounded up to the closest 9.99 because all businesses do this, gets you the new retail price of the vita at 209.99.

This is the formula Sony will use. They dictate what profit they want to make. So they could change the profit % to lets say an even 50% and factor that in accordingly.

My point being though is that Sony is a business and as a business they need to keep making a reasonable profit. A price drop will occur but again Sony has to wait until the cost of the parts goes down which it should this time this year. They aren't going to rush it because there is no need. They do not need to because they are making the money they are after. They aren't going to drop the price because a % of consumers say it's too expensive. Sony's reply to that would be well wait for the price drop then. You don't need a vita right this minute.


If Sony is getting the profit, and sales it wants right now, why drop the price later?
They'd only get a bigger share of profit by NOT dropping the price if the components cost less.
If they're satisfied now, they'd only be more satisfied with the same sales and bigger profits.
Why drop the price at all then?

The only benefit to a price drop is selling more systems(Presumedly a one time sell), and increase the profit flow from software that lasts the entire lifetime of the system.
Which is better? Getting payed $150 right now, and $20 a month for 10 years, or getting payed $100 right now, and getting $60 a month for 10 years?
That bigger initial profit is nothing compared to increase in continual profits.

Pick one:
$1,000 right now, or a penny doubled every day for a month.


Because if word got out that Sony is only spending lets say $50 to make a vita and are selling it at $250 I would say that would be pretty damaging to a company wouldn't you agree? You are right though they could do that but most likely they won't. Once the price drops on it's cost they will pass it on to the consumers.

A game released last year is not making any one who made it any money now. Used market is taking that share and developers and Sony move on to the next game. Saying a game is going to keep making money for 10 years is absurd.

You are sort of right though. Games are important to Sony. Those license fees and developement kit are making them as much money as the console is. But as you may have noticed that cash is made before the games even hit the shelves.

A game selling well though doesn't influence Sony the way you guys are thinking. By that logic Sony's profits from COD and GTA alone would have paid off their debt years ago. Like I said that profit is abysmal.
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#42EJ226(Topic Creator)Posted 1/30/2013 11:48:40 AM
Regardless if Sony sellng Vita at a less o not, it seems like Sony isn't doing what it needs to do to get with his thing turned around before its too late. They need third party support that isn't a port from 3ds or console systems. They need original games only on Vita. They need a price drop on the memory cards at the very least.
What if they could get the Android app market on here. Think of the sales then. I know its a pipe dream but there is a few things that could help turn this around. All Sony has to do is put alittle effort into it.
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#43NerdstickPosted 1/30/2013 11:51:47 AM
Removing the one-PSN-account restriction would cost them nothing.

Nor would I imagine it would be very difficult to add interface options, I'd really love to go back to XMB.
#44kingofall214Posted 1/30/2013 11:58:22 AM
EJ226 posted...
Regardless if Sony sellng Vita at a less o not, it seems like Sony isn't doing what it needs to do to get with his thing turned around before its too late. They need third party support that isn't a port from 3ds or console systems. They need original games only on Vita. They need a price drop on the memory cards at the very least.
What if they could get the Android app market on here. Think of the sales then. I know its a pipe dream but there is a few things that could help turn this around. All Sony has to do is put alittle effort into it.


There is no proof of a lack of 3rd party support. Here is a list of 3rd party developers who are currently working on or have released a game for vita

http://www.joystiq.com/2011/06/06/here-is-a-list-of-your-playstation-vita-developers/

And thats only announced 3rd party support from before the vita was out, Just because there isn't any news doesn't the 3rd parties aren't there.

They don't NEED to drop the price of memory cards. It would be nice but they have no obligation seeing as they are selling.

Android on Vita will never happen in a million years. At least not by Sony.

The vita doesn't need to turn around. Just because some blogger says "it's not selling well" doesn't make it true

I will take Sony's word that it is selling at the scope they predicted before I take some bloggers who says it's going to flop
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#45kingofall214Posted 1/30/2013 11:59:47 AM
Nerdstick posted...
Removing the one-PSN-account restriction would cost them nothing.

Nor would I imagine it would be very difficult to add interface options, I'd really love to go back to XMB.


As a company who cares about making money I don't think they want people sharing a handheld. It's not cool. But it is what it is.
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#46EJ226(Topic Creator)Posted 1/30/2013 12:11:59 PM
Like I said, some of those comments I made are pipe dreams. As far as third party support you are right they are making games for it. What I mean is they need new original games frm third parties that will get gamers excited and not just the gamers that have a Vita.
As far as you saying just cause one person saying vita isn't selling doesnt mean its true, you are correct with that statement. But the problem is all the stores around me have their vita section getting smallier. That doesn't happen unless the product isn't selling well. I am hoping Vita kicks ass but am now keeping my expectations low. And thats part of the problem. People on the fence about buying a Vita are looking at Sony and really seeing Sony not trying much to help the Vita sell so they figure why waste money on a dying prodct.
But King, you are right on some of the things just lke I am wrong on some of the things.
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#47kingofall214Posted 1/30/2013 12:18:20 PM
EJ226 posted...
Like I said, some of those comments I made are pipe dreams. As far as third party support you are right they are making games for it. What I mean is they need new original games frm third parties that will get gamers excited and not just the gamers that have a Vita.
As far as you saying just cause one person saying vita isn't selling doesnt mean its true, you are correct with that statement. But the problem is all the stores around me have their vita section getting smallier. That doesn't happen unless the product isn't selling well. I am hoping Vita kicks ass but am now keeping my expectations low. And thats part of the problem. People on the fence about buying a Vita are looking at Sony and really seeing Sony not trying much to help the Vita sell so they figure why waste money on a dying prodct.
But King, you are right on some of the things just lke I am wrong on some of the things.


Well the PSP section has always been a tiny rack at my gamestop and the vita section hasn't gotten bigger or smaller. They always keep stuff in stock though because I went once to get a grip for my vita and they just sold out. Went back a couple of days later and they had it.

You mean new IP's? A known brand people like like GTA will always be a better system seller than some new IP.
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#48EJ226(Topic Creator)Posted 1/30/2013 12:27:34 PM
Yea GTA would work wonders for sure! And you are lucky. Vita shelve spaces sit bare for sometime around me. Best Buy by me had almost all vita space bare for 3 weeks before putting 1-2 of each vita product on the pegs but the 3ds section is refreshed every 3-4 days. I hope for the best though!
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PSN- EJ0226
#49Human-BeanPosted 1/30/2013 4:04:00 PM
ITT: The ignorant spout nonsense, the Vita isn't doing so well in sales, Sony has reduced their expectations due to the poor hardware sales, it is not what Sony wants, far from it. If I can remember correctly Sony predicted 10 million units should be sold in a given time period and this has been decreasing.

Regardless of the cost in manufacturing, the Vita does not produce a $70 profit for Sony, I wouldn't be surprised if it's sold at a loss, the retailers get a cut and so does the government via tax. Software sales is what brings in the most profit not a mediocre $2 for Sony, that's ridiculous, the developers recieve a decent amount and so does the platform holder. Sony and Microsoft sold their consoles, this generation, at a loss initially, they believed they could recoup their losses through software sale in a few years. Third party support is what generates the most profit for Sony's gaming division as their franchises aren't established unlike their competitors.

180/250 * 100 = 72%. This is what the cost of manufacturing the Vita is according to you, not the percentage of profit gained. Please do not use maths to attempt to provide evidence for your points, it just shows your lack of intelligence. I can't quote all of you sadly.
#50PHOENIXZEROPosted 1/31/2013 5:04:38 AM(edited)
It took way too many posts before someone brought up the fact that retailers have their cut. That $180 price also didn't factor in several other things from what I remember. Sony is likely selling those memory cards to retailers for a premium seeing where they prices of them have been. They were at best breaking even with the Vita (though perhaps not) but making money with accessories (especially the memory cards) and games.

Also license fees are significantly more than $2 per game, for the Vita it's probably at least twice that if not the same as consoles. IIRC base licensing fees were something like $7 per unit from some chart from years ago for console games, don't know if there'd be a difference with handheld games and the lower price of the software.

The money is in the accessories and software, this has been how Sony (and MS though they made nothing on the original XBox) have operated for a long time now though with their issues with profitability over the last four or so years it's clear they want to at the very least not have a repeat of the PS3 mess, which as I think I already said, they won't be repeating and really the factors (largely Cell and especially Blu-Ray) that resulted in the PS3's high price aren't going to be repeated. Whatever losses Sony is probably taking on the Vita, if they were or are would likely be small though if they want to get more units out there, which should be their TOP priority they need to get their heads out of their asses and push it much more aggressively. Unfortunately though Sony lost their balls this generation.


EDIT: I was thinking of a different topic. <_< But the problem remains, Sony's management in certain areas is ****ing awful to the point of incompetence.
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