Sony lower vita (and psp) sales forecast again: 7million by 31st march

#71kingofall214Posted 2/7/2013 6:09:20 AM
HornyLevel posted...
kingofall214 posted...
Big_Isaac posted...
the difference between Sony and Nintendo is that Nintendo has enough money on their bank account to buy the entirety of Sony, while Sony doesn't even have enough to buy a snickers bar.

when they lowered the 3DS' price below production cost, they could do so because they had more than enough money to cover the loss. not to mention it got back into the profit zone only a few months after the price drop.
with the Vita, Sony has been losing money with every unit sold from the start (as Sony and MS always do). this means that if they lower the price even further, their break-even point is going to sail away into the land of dreams.


Yeah your facts are wrong. Your first paragraph is nonsense. Vita was never sold at a loss. It is technically a profit if you make $1 dollar more than what it costs to make the unit. This suggest that yes the 3DS does make a profit it's not nearly as huge as the profit the vita makes. The vita cost $160 to make as I posted earlier.


He's not far off. Nintendo has 12B cash and they Sony is worth only 15B. Sony can also not afford a Snickers bar since they're in billions in debt.

Now, all the "profit" they make on each Vita is put into the money that's paying off the cost of the Vita project. It's not profit if it is being used to pay something off.


Sony has 15 billion cash and 16 billion debt. It's like saying you are drowning in debt when you just bought a home. And it's reported (though not confirmed) Sony now has more cash than debt. Every penny Sony makes is another penny more than what they owe. Unless Sony royally screws up the PS4 or some other section of there business they are making more money and spending less.

Yes it's being used to pay off the debt but it doesn't have too ether. How big do you think it costs for R&D? We all know they didn't spend jack on advertising so that's paid for.
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#72kingofall214Posted 2/7/2013 6:10:07 AM
ylvis posted...
kingofall214 posted...
Big_Isaac posted...
the difference between Sony and Nintendo is that Nintendo has enough money on their bank account to buy the entirety of Sony, while Sony doesn't even have enough to buy a snickers bar.

when they lowered the 3DS' price below production cost, they could do so because they had more than enough money to cover the loss. not to mention it got back into the profit zone only a few months after the price drop.
with the Vita, Sony has been losing money with every unit sold from the start (as Sony and MS always do). this means that if they lower the price even further, their break-even point is going to sail away into the land of dreams.


Yeah your facts are wrong. Your first paragraph is nonsense. Vita was never sold at a loss. It is technically a profit if you make $1 dollar more than what it costs to make the unit. This suggest that yes the 3DS does make a profit it's not nearly as huge as the profit the vita makes. The vita cost $160 to make as I posted earlier.


Link for that $160 number please.


I posted it earlier but here you go
http://www.ign.com/articles/2012/01/20/report-playstation-vita-components-cost-160
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#73EdwardHohenheimPosted 2/7/2013 6:10:14 AM
Love all the damage control the ponies are running over this. So much BS.
#74kingofall214Posted 2/7/2013 6:11:37 AM
HornyLevel posted...
kingofall214 posted...

$160 to make. Last year. Think about that. Contemplate that profit for each vita sold. $90x4 million. Now take The 3DS. It was sold at a loss after the price drop. Started to make a profit months down the line. Probably a few dollars in profits.


You'd be stupid to believe they make $90 in "profit" on each console and not worry about the rest of the costs, plus the fact that they're not sold to retailers for $250 like you assume.


Of course the retailer gets a cut and the rest is used to paid for R&D.
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#75Shadowfxd2Posted 2/7/2013 6:12:13 AM
From: EdwardHohenheim | #073
Love all the damage control the ponies are running over this. So much BS.


that's how this board is...
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#76GamenamebullyPosted 2/7/2013 6:12:38 AM
I can sum up this topic like this:


"lol Vita!! Poor sony ponies!"

"Dude WTF are you doing!?"

"Vita is doomed!"

" *facepalms at the sheer idiocy on both sides on this topic*

"*Both sides scream and gouge each others eyes out*"


Did I miss anything?

I GET IT. The Vita ain't doing so well, it's stupid generalizing everyone as "Sony Ponys" and make fun of them BUT pretending it's not selling bad is just childish too.

Jesus people.
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#77kingofall214Posted 2/7/2013 6:13:32 AM
EdwardHohenheim posted...
Love all the damage control the ponies are running over this. So much BS.


Congratulations. You are the 1 millionth poster to add nothing to the topic you are posting in.
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#78HornyLevelPosted 2/7/2013 6:18:54 AM
kingofall214 posted...
Sony has 15 billion cash and 16 billion debt. It's like saying you are drowning in debt when you just bought a home.


Doesn't change the fact they they're still in debt and could, if Nintendo had a little more money, be bought off and also cannot afford a Snickers.

And it's reported (though not confirmed) Sony now has more cash than debt. Every penny Sony makes is another penny more than what they owe. Unless Sony royally screws up the PS4 or some other section of there business they are making more money and spending less.

That's BS. No it hasn't. You just made that up to make you argument look better.

Yes it's being used to pay off the debt but it doesn't have too ether. How big do you think it costs for R&D? We all know they didn't spend jack on advertising so that's paid for.


We know how big it is. Enough that they had to sell 16 million to reach profitability in 3 years. It's now more than half that. Vita money goes to the Vita project. It's why they made the forecast.
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#79xfactor(Topic Creator)Posted 2/7/2013 6:23:46 AM
I am pretty sure sony will have factor in the lower cost of components over time element and stuffs when they make the statement that they aim to have the vita profitable within 3 years back then.
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#80kingofall214Posted 2/7/2013 6:25:32 AM
archedsoul posted...
Sure. Doesn't excuse the other braindead stuff you say, like the rest of this post alone.
Now to your actual claim involving this topic. No it's not "horrible". Again vita is not being sold at a loss. The cost to make a vita will be dropping very soon. As a result Sony can sell the vita for less and still make a % profit.

Not being sold at a loss per unit is irrelevant. They're making no profit till that 3 (now probably 6) years. That is horrible no matter how you spin.

I mean the amount of stupid in this post alone should tell people that your comments hold zero credibility. The fact that you keep bringing up them not selling each unit at loss also shows how you're not getting this.
Sales are low. They are toughing it out until said price drop. There is nothing else they can do. There is no reason to drop the price so it cuts into there Profit % or even starts selling at a loss when sometime this year they can drop the price and keep there profit %.

No.
As for your "dying company" claim, Sony stock has been going up for the past couple of years. They have other sections of business other than gaming you know. Some of those sections are making them some pretty good money.

http://i.imgur.com/K1jPzuT.png
http://www.ign.com/articles/2012/06/04/sonys-stock-falls-to-lowest-level-since-1984

Guess up is down in your deluded world?

PS4 being released is a desperate move? I don't see how. It isn't going to start making them billions overnight no matter how good it is. Console sales start slow and pick up steam over time. If you think the PS4 is going to sell tens of millions in a few weeks well you would be mistaken.

Like ylvis says, it doesn't take a rocket science to figure out it's not worrying about making money, its about fighting Microsoft and Nintendo and coming out alive.


First off why are you resorting to insults and name calling? I thought we were having a nice debate.

Ok you see sony's debt is at 16 billion right? Part of that was from R&D for the vita. It is not going up. R&D is a one time cost. For ever vita sold lets say retailers get $40 and I think that is being generous. That leaves left over profit at $50. Now multiply $50 by 4 Million (and counting). That money has been sitting in Sony's bank. It adds to the 15Billion they have in cash. Cash that in the future can be used to pay off debts or maybe R&D for something else.

"No" is not an argument

You do realize sony stock has been going up in the last few months right?

It doesn't take a rocket scientist to see that it isn't the best but it isn't the worst thing to happen to Sony ever ether.
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