PS3 Japanese Price Drop 'Ridiculous'
Gamasutra reports on comments from a Japanese analyst group, characterizing the pre-launch price drop for the Japanese market as ridiculous. From the article: "Meanwhile, Naoki Fujiwara of Shinkin Asset Management suggested that the price reduction was 'negative for the short term because the company may not be able to sell enough consoles to cover an instant loss caused by the price cut.' The PlayStation 3 was already expected to be sold at a loss, with Sony allowing up to five years to recoup the costs. Shares in Sony fell 1.9 percent following the announcement, although this coincided with a generally poor day for the Tokyo Stock Exchange and may not be entirely related to the price cut."
I have misgivings about Microsoft as much as the next Slashdotter but given the Xbox 360 has already seen price breaks in some of its games and it has a price that I more typically associate with something that I "play" with. I think I am going with Microsoft this time. I might get a Wii as well, because I find it offers much better multiplayer games for parties.
An Education is the Font of All Liberty
Ah, but in order to sell more units, they must order more parts to manufacture the extra units. A larger order for parts means a larger bulk discount, thus reducing the loss per unit. As component prices continue to fall over time, this can eventually become a profit per unit.
Sony subsidizes the PS3 & wants to sell content...
Um, sure. Too bad Sony has said absolutely nothing about how much each unit costs to produce.