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Did Sony Lose Out by Pricing the PS4 at $400?

Next to Sony’s announcement that they would not be including digital rights management in their Playstation 4 plans the $400 price tag was probably the biggest applause line. So the idea that this price point could be a mistake probably seems patently absurd.

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iamnsuperman1087d ago

Well I don't know. We will have to see in a years time to see if their strategy worked or not

Septic1087d ago

I don't think we have to wait a few years. The price is extremely competitive and no doubt is playing big part in the huge pre-order numbers.

guitarded771087d ago

I think the crowd response at the E3 announcement proved it was a win. Sure, they could have charged more... but they didn't... and that makes people happy.

ThatKanadianKid1087d ago

Fan wise they certainly won, great press and everything etc.

Hydrolex1087d ago

No, it's an absolute win

mp12891087d ago (Edited 1087d ago )

Article: "As great as a $400 price is for gamers, the Playstation 4′s overall full-generation experience could conceivably be better faster if it was to launch at the same price as Xbox One in my opinion."

me: and thats why your opinion is not important.

blitz06231087d ago

The only reason $400 is a "Win" is because the Xbox One is at $500.

It's all driven by competition. People who say $400 is an awesome price are only fooling themselves. If the X1 were to launch at $300, we'd only hear "Well $400 is still reasonable and okay"

Blastoise1087d ago (Edited 1087d ago )

@blitz0623 ^

"People who say $400 is an awesome price are only fooling themselves"

Really? Why is that?

I remember when the specs were released and it was revealed the PS4 had 8gGB Gddr5 and everyone went nuts expecting the PS4 to maybe even be more expensive than the PS3 with that kind of power. Now it's revealed to be $400 and everyone's trying to downplay a very appealing price point.

What's that all about?

Diver1087d ago

Did MS lose out by pricing at $500?

Blachek1087d ago

They left money on the table pricing that far below the competition with hardcore gamers. More casuals will consume systems based on the pricepoint.

blitz06231087d ago

@Blastoise

I'm not downplaying the $400 tag. I'm just saying people wouldn't say it's a GREAT or AWESOME price if the competition ie the Xbox One were to launch at a similar or even cheaper price.

$400 for the specs is REALLY GOOD. But let's face it, if the X1 were to launch at $300 (for argument's sake) nobody would be praising $399.

The_Con-Sept1087d ago

A lot of elements are at play. Microsoft has still left a huge burn mark on our minds when they first unveiled their DRM policy.

Sure they flipped and flopped but if our own history in politics teaches us anything... In the end.... PlayStation 4 will be the more popular choice. Any fanboy can try to argue this but look at history for a minute. Who won all presidential elections? Consistent candidates. Why? No one likes instability. Doesn't matter if they say anything. The simple fact that they flailed around like a fish out of water sends people a mixed up message. No pamphlet, flyer, or public broadcast message can't change people's minds in America. If you don't remain consistent then a majority of people will not be interested in your campaign.

I expect to see the race to be close this gen but we've already gone through so many console wars since the 80's. Anyone can see this set up is a lot different but it is strikingly similar to what we have already seen go down.

Sorry but people might have a short memory span, but sometimes it is that lingering doubt that causes people to swerve one way or another.

shoddy1087d ago

I don't care if Sony loose out or not.
It's a win win for me.

mistertwoturbo1087d ago

It paid dividends to the X360 launching at a lower price point, so no Sony is going to Gain in the long run. They could keep that price point going for a lot longer and if they do drop the price, they can do it in smaller increments like $50 instead of $100 like they did with the PS3.

gaffyh1087d ago

Sony will make up so much money from royalties, that it makes sense to have a lower than expected price point. If they sell loads of consoles, especially in the initial stages, they will easily rake in the money on third party titles, and even more on exclusive games. If you add on to that PS+, and any other future services like Gaikai, it shows you their mindset.

They are coming at this generation like they are the underdog, like they are launching the first PlayStation ever, but this time they are in an even better position because they have established IPs, and the best and largest first party in the whole industry. I hope they do well because they deserve to be rewarded for providing us the console at a VERY reasonable price. Even if the Xbone was the same price with Kinect, there is an argument in favour of PS4 in terms of power.

trafalger1087d ago

$400 is better than $500, its that simple.

guitarded771087d ago

@ blitz0623

You say: "People who say $400 is an awesome price are only fooling themselves. If the X1 were to launch at $300, we'd only hear "Well $400 is still reasonable and okay"

I'm gonna disagree with you on that. After the initial announcement of the PS4 and XBOX One, I had already decided that the PS4 was day 1, and XBOX One was not because of the policies.

I had already set in my mind that I was willing, and expecting to pay $500 (possibly $600, but I didn't think Sony would do that after the PS3 launch). When it was announced at $400, I was surprised and it was just making a good thing better for me.

Your point that people thinking $400 is a good deal being BS, is BS in itself. We knew the hardware wasn't going to come in at $300... anyone expecting that doesn't know anything about hardware. But it is certainly reasonable for people to think "$400 is awesome" without even factoring in the XBOX One... I did... and I'm sure as hell not fooling myself.

Gamingcapacity1087d ago

@Blachek

You hit the nail on the head. Casuals will flock to the lower price.

Lower price mean more people will but it. More people buying could mean more profit from hardware, depends on what the profit/lose compared to the competition.

What it certainly will mean is that if more people buy your console, you will make more money on software and online subscriptions.

So even though they might make more money on each console sold, it could hurt them in the long term.

We will see each company battling for that space under the TV left from the 7th gen console. Competition is great for us consumers.

President1087d ago

''Next to Sony’s announcement that they would not be including digital rights management ''

What kind of crap is this? Every system has drm, the PS4 is just much less restrictive. Lol at spelling it out instead of typing drm.

BISHOP-BRASIL1087d ago

Anyone the least familiar with console gaming industry knows the standard model is to make the console available as cheap as a company can afford in order to maximize game sales, to which they have a piece of the profits. Most people only have one console, but how many games each player have? That's where the money is, not on the console.

Think of it this way. Let's say Sony sell 10 million (just to use an easy number for example) PS4s at 400 dollars in a quater, but if it was at 450 they would have an estimate of 7 million consoles (I'm assuming sales some 30% down) in the same time frame and those extra 50 bucks are pure profit. Well, it may look like it's paying off at first because you got 0 profit from consoles at 400 while at 450 that's 350 million in profits.

Now let's assume an attach rate of 1.5 to 2 monthly, so say those PS4 owners would buy 5 or 6 games in that quater, being that only the ones paying 400 would buy one game more (since they made an initial economy on console price), but either way Sony takes 10 bucks from every game sold. So PS4 at 400 bucks sell 60 million games (600 million in profit) while at 450 bucks it sells 35 million games (350 million in profits).

Well, but 700 million (350+350) is still better than 600 million total profits, right? Well, not exactly. You can only sell so many consoles, eventually everyone that wants one will already have one, tipping the balance over time to games being the critical source of income rather than consoles, also if you manage to sell more games with your console price strategy you gather more support from devs and publsihers (and, portentially, more profits down the line).

+ Show (16) more repliesLast reply 1087d ago
Tatsuya 1087d ago

Price was never a factor for me. I would still buy it if cost $1000. But, it's great that
SONY knows what we, the gamers want and deserve. There couldn't be a better price.

_-EDMIX-_1087d ago

LOL! Wait for what? PS3 at a higher price as outsold 360 at a lower.

Mind you Sony STILL has games for PS3 for this year and next. Thus, they are in it for the long run! No PS system has sold under 77 million units and PS4 doesn't seem to be the beginning of it LOL!

Sony has MORE teams this gen, is focused on in-house development and has the lower price point and the better hardware by a really large gap. Its easy to see that yes...Sony will make its return on PS4.

What? Will a GT not come out? Will sequels to the Last Of Us not come out? Will MGS5 or FFXIV not come out? I mean damn buddy, I'm not sure what you don't know but...those games sell and will be on PS system thus it will sell pretty much like PS3 if not more. Its at cheaper price point faster.

Bathyj1087d ago

Getting out the gates strong, and letting everyone know PS4 is the machine to get is the most important thing in the early days.

PS3 sold faster than X360 from the moment it launched but the fact it was always behind in overall sales until recently lead some people to believe that it was a failure.

Any short term lose of profits will pale in comparison to the long term benefits of starting strong, and securing this generation. If PS4 gets a lead over XBOne, I dont think it will ever lose it.

Sony arent a company that worries about the next 6 months, they worry about the next 10 years.

Campy da Camper1087d ago (Edited 1087d ago )

Exactly. People need to remember that forecast analysts don't think 6 months out but 6 years. Sony learned a lot this gen. In addition to meeting the wants of consumers and devs they learned what sells and what won't. I see huge launch numbers but then rather than a steep level off they will be bringing us more features and surprises to maintain momentum. That with good marketing and most importantly, GAMES, they are set for a good run.

People argue titan fall this kill zone that but Sony has massive 1st dev support and with the dev friendly hardware third party devs are clamoring to make games for them, too. HUGE turnabout from this gen.

Games, games, games with dev friendly policies and strong, well built hardware is huge for Sony right now.

gobluesamg1086d ago

Yes and they are playing this well. A lower starting price and charging the yearly rate for Plus which gamers will gladly renew after they try it. They will be making a much better profit margin than this Gen.

joeorc1086d ago

"Sony arent a company that worries about the next 6 months, they worry about the next 10 years."

100% for the truth, thats why there is something called a "business plan"

every playstation system is on a 10 year plan! when they say 10 years, its not somthing they just say willy nilly, you have to have a outline, a prospectus. etc. they are on a 10 year plan because that is what the "business plan" is outlined for!

staceyshea1087d ago SpamShow
Rimeskeem1086d ago

The people who are getting the xbox one keep saying they are planning on getting the ps4 when the better exclusives come out

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ThatKanadianKid1087d ago (Edited 1087d ago )

Personally, I would have bought the PS4 if it was at $500 even without the camera included. Is the $400 price a good thing? Duh, but at this day and age I've become accustomed to spending anywhere from $500 or more for new technology. And for as much use as I plan on getting out of the PS4 and Xbox One, I wouldn't mind paying the higher entry fee.

Obviously it's a great thing for consumers, but Sony I'm sure could have used the extra money. I don't think Microsoft is too worried about having their system cost $100. Just my two cents.

HammadTheBeast1087d ago

I think having PS+ for MP allowed them to get away with a lower price.

awi59511087d ago (Edited 1087d ago )

@ThatKanadianKid

With amd cards always use old drivers the games always run better. I use the 12.8 cap on my 7850 2gb crossfire build. And never buy Pc's they always rip you off. They only way i think you could get a deal is pay cyberpowerpc.com to build a pc for you. When i was lazy and didnt want to build one i got one with tower,memory,quadcore,powersou rce,motherboard for 380 then i put the graphcis card i wanted in myself.

awi59511087d ago

I cant spend that type of money on consoles anymore especially if i can get the same performance from a pc game at a lower cost. You know a 7850 costs 150 dollars its on par with the gpu in the ps4. So ill buy 400 dollars of upgrades for my PC instead.

ThatKanadianKid1087d ago

I would agree with you, but with the gaming PC I bought for the same price as the PS4, it still has trouble running games that it should have no issues running due to drivers or whatever else is wrong. I like consoles cause I know when I buy the game out of the package it will work out of the package with no hitches unless the developer screwed somewhere.

extermin8or1087d ago

But the console environment and PC environment is totally different. a gpu in the ps4 will perform better gaming wise than the same GPU in a pc of similar pricing. Because on PC the games are designed to work on the highest and lowest and everything inbetween tech wise-on a console they only have to run on the specs of the ps4 in a closed enviroment.

awi59511087d ago (Edited 1087d ago )

@extermin8or
LOL no it wont lol you are delusional. On pc you can max your draw distance, max your texture detail, max the amount of obects onscreen. Then set your shadows to high or medium and all other settings to a mixture of high and medium and still run at a higher resolution than consoles and get 30 fps more and still look way better than console you are crazy lol. Pc is flexable we can max the eye candy part of games then cheat in other ways lol so you have no idea what you are talking about lol. We can change our physics stress on our cards, the amount of tessellation, the amount of AA, you cant do that on console your are locked and if the developers messes up your stuck with it there are ways for us to fix developers incompetence.

+ Show (1) more replyLast reply 1087d ago
illustratedDEO1087d ago (Edited 1087d ago )

actually my amazon KillzoneShadowFall bundle is priced at 499 am I complaning, nope.Soon to be Proud PlayStation 4 owner get hype hater's gonna hate lmao

Prcko1087d ago

i hope sony won't lose money with this price

HammadTheBeast1087d ago (Edited 1087d ago )

Probably not, only reason Xbox One is priced higher is because of Kinect.

_FantasmA_1087d ago

And because of TV. Call of Duty. TV. Dogs. Fish. New advance AI. TV. Sports. TV. Those things cost money.

iceman061087d ago

Most companies take initial losses on consoles and make them up on software and peripherals, etc. Sony will be fine. In fact, if pre-orders are any indication, they will start to see more and more profit from the games division. They were taking a $170 loss per console on PS3 and they made it to PS4. With the support now looking strong and from day one, it seems like a pretty good scenario.

PSN_ZeroOnyx1087d ago

Actually PS3 hardware became profitable back in 2010.

iceman061086d ago

@PSN_ZeroOnyx...yeah, I know. It took them several years to cut the costs and make profit from the console. I'm glad that Sony was willing to take the hit in order to bring more technology to market on the PS3. I got one day one and had NO issues with that.

_FantasmA_1087d ago

Knowing how well Sony supports their system, I'd pay $600. Sure it would take me forever to pay it off, but the PS3 was and still is worth every penny I spent, and even though I just bought it 2.5 years ago, I would gladly have bought a fat back in 2006 if I had known what I know now.

rezzah1087d ago

If it was at $500, I would have waited. I already set my mind to not paying more than $450 for the PS4.