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Will the Lack of a Holiday Price Cut Doom Vita to Failure?

Game Rant's Jeff Schille writes: "Sony Worldwide Studios President Shuhei Yoshida reveals that there will be no PlayStation Vita price cut this year. With no holiday price cut to boost sales, could this be the beginning of the end for Vita?"

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Erimgard1440d ago

It won't doom the Vita, nor is it the beginning of the end. The Vita's fantastic holiday lineup and Cross Buy bargain will help the system sell better than it has thus far (which isn't saying anything at all, given its abysmal sales) and the Vita should have an "okay" holiday season.

A price cut could have been a turning point that made the Vita have a GOOD holiday season, but frankly, Sony will take what they can get with it. A price cut is out of the question right now, because Sony is already losing money on the system, and they don't have the spare cash to dig that hole deeper in order to move units.

Long term I believe the Vita will struggle to be successful, and a price cut could very well fix that, but for now the Vita isn't doomed. It will see a sales increase in Q4 of 2012, and then its sales will slump again. The Vita will not be able to reach massive success without a price cut, but now is not a viable time for Sony unfortunately.

DarkHeroZX1440d ago

the vita is actually profitable. 3g model only cost $159.10 to produce. its priced at $299, so they're bringing in atleast $40-50 for every vita sold after all other fees are paid. but its not so much the price thats the issue, its content lol. Sony can very well pull it off but they need to bring in more value which they are working on. Now what does need a price drop is those memory cards.

Erimgard1440d ago

Sony said themselves that they were going to lose money on the Vita for the first 3 years.

Erimgard1440d ago

I take the word of Sony's CEO and President over an analyst's guess.

http://www.examiner.com/art...

Here's the actual interview (in Japanese) if you want to check it:

http://translate.google.com...

I don't see why Sony would lie about the system not turning a profit until three years into its life.

DarkHeroZX1440d ago

Dude both your articles are old lol. Mine is more recent, yours are much older.

Anyway they invested over 150 million on the vita development. Even though they make money off of every vita sold they aren't going to turn profit until an estimated 3 year. Its like how the ps3 is profitable now but its still billions in the hole.

hkgamer1440d ago

Depends what you mean by being profitable. Cannot really say how much everything costs but if you add up all other costs occurred during the process of manufacturing the Vita it may not be making a profit at all.

R&D costs - most likely millions and millions
Labour costs - all those people working at factories
Marketing costs - Advertising/PR
Material costs - Screens, buttons, casing, etc..
Manufacturing costs - factories/machines/logistics

Not really sure which categories you can sum up and then divide to work out the true value of a single Vita but they will probably add up more than $299.

Probably didn't catergorised them properly and surely alot more other costs that my mind can't think of right now.

@Erimgard
With Sony's new approach to Vita such as Crossbuy and Playstation Plus, it would probably be harder to calculate the actual revenue the Vita is producing. So it may actually take longer than 3 years to see profits.

+ Show (2) more repliesLast reply 1440d ago
Anon19741440d ago (Edited 1440d ago )

It's funny, and yet sad. I was just typing in another "Vita doom" article on the front page that this was getting ridiculous and this one popped up. A guy can't even keep up with the speed that this shit is coming out! Try typing in "Vita" and "Doom" or "Save" into the search to see just how bad it's getting on this site. The goddamn thing hasn't even been available worldwide for six months yet, and Sony themselves have said they're happy with Vita sales and digital sales were exceeding their expectations.

So do any game journalists out there want to step up and report on, oh..I don't know...maybe some game news? Anyone? Seriously, as a community, we need to stop giving these guys hits, and blacklist these sites that are just in it for hits. And I'm not talking just Sony detractors, I'm talking the ridiculous Nintendo doom articles as well. It's funny. 360 games sales have dropped off by nearly half the first 6 months of 2012 according to Microsoft themselves, Wii sales had fallen 55% year over year last quarter and yet Sony says they're happy with the Vita's sales and revise PSP/Vita sales down a bit, reveal a bunch of cool incentives for Vita users and it's "DOOOOOM!"

TBM1440d ago

OMG this is insane lol. we can't go one minute without the doom articles. where's the actual gaming news on this worthless site?

Mustang300C20121440d ago (Edited 1440d ago )

Right because Tretton and Sony are going to come right out and say they are disappointed about the Vita performance. It is called spin like you are doing. By the way your a grown man how come you keep whining about articles you don't want to see? That goes for everyone hear on any article. Why are trying to keep up with these articles.

"For gaming, Sony only incurred a $45 million loss, which is fairly low compared to the other divisional slides, but still adding to the financial troubles of the company. Sony cites sagging PSP and PS3 sales as being a root cause for their losses, while the Playstation Vita has failed to counterbalance those losses due to low sales. Sony is increasingly lowering their expectations for this fiscal year, looking to consolidate their financial forecast for the fiscal year in response to expected losses."

http://www.blisteredthumbs....

They keep having to adjust their expectations from the quarterly reports.

However long it has been on the market is irrelevant. If it isn't performing well since day one in Japan and what we know today Worldwide from the fiscal reports than yes it is in trouble. Dead NOOOOOOOOOOOOO. It isn't performing as planned period.

Mustang300C20121440d ago

The price cut is out of the question because Sony can't afford to price cut it. That is why we see the bundles coming. Sony's plan was to offset the possible and already confirmed lowered sales of the PSP and PS3 with the Vita and from the fiscal report Sony themselves state that this isn't working so far because the low sales of the Vita in addition to the low sales of the games for the system.

Sony's real issue will come if the PS4 is coming in 2013(IMO I think it is coming in 2014) and if that happens the issue is where the price will be when it comes to a PS3, VITA and PS4 on the market. If the PS4 drops next year and Vita is still underperforming even with a price drop, than it will be the first to ax because now way Sony is going to just stop PS3 support.

Silly gameAr1440d ago

I don't know why people still go to articles like this. They're all pretty much the same.

Metal-X1440d ago

There's that word again.....

TheGamingArt1440d ago

* sigh *.... LEARN HOW TO BE A PROFESSIONAL JOURNALIST. God damn, stop spamming with this B*** S***

miyamoto1440d ago

NO. the types of games will decide Vita's fate.

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