Andriasang: Company expects to reach hardware profitability within three years.
I expected so. lets just hope its not that bad of a loss. Im glad though they are selling it at this price point. This opens doors to the mainstream, and the competition is going to feel it.
Just more proof Sony cares a lot about their customers
Or that they know how to say what people like to hear. Makes you think you're getting more than what you payed for. And since there is no way for us, other than going by their word, to know if they are really doing it or not it's clever marketing. @KiasuKiasiMan - They said this about the PS2, the PSP and the PS3 as well.
I really don't see how charging less than cost is "caring" about customers. It's all business. They want to get their product into as many hands as they can. Then they laugh all the way to the bank with royalties and developer fees from each game sold.
@ All above... it may not be caring about their customers, and there ARE ways of verifying this through accounting and corporate responsibility practices (Laws that govern how a business behaves towards the public)... In other words no company can make these claims without proving it behind the scenes in their financials. At least we are getting value for money... that is what we want. And Sony gets the product in as many hands as possible. And not all hardware is sold this way... examples to the contrary include Apple, Nintendo and Microsoft all made profits at launch.
I actually believe they are selling their 3DTV at a loss as well. This was Samsung strategy to sell at a loss the first few years so that in the future it'll be cheaper. Its a great strategy to set for the future, which is what Sony is trying to do. As mention by Agent-86 below, its like selling razor blades. The handle is the console and the Razors are the software/accessories. Companies can sell handles at a loss but everything is made up from the razors. Notice Sony doing that with the PS3?
"Just more proof Sony cares a lot about their customers" Let's make it clear that it don't necessarily has do with caring about us. It's a business model, one that works for them and keep the costumer happy. Everyone wins. They could as easily overprice their stuff and make a profit, but for how long they could keep it? What you call caring, I call foresight. Some companies have it, some don't.
It seems they finally learned their lesson. The price of that tech alone is fantastic. If they can keep it from getting hacked like the psp then they have a great contender for the handheld market. I haven't heard one bad thing about it!
I dunno how this could be a bad thing as a consumer, am getting hardware valued at a higher price then what I paid for it. That's win win, I could care less how Sony balances there books.
last I check apple and MS would never ever give thier customers some slack on price. In fact those company made %150 profit.
The reason they will sell the PSVita at a loss is to get as many out there as possible, that way they can make more money through sales of the PSP remakes, PSVita games along with other content. The more they sell the more money they will gain through software sales, they did the same with the Playstation 3. It has nothing to do with sony caring about there customers they are only doing it to make more profit in the long run. Sorry to break your bubble, all companys give with one hand and take away with another.
All brand new hardware is sold at a loss until the manufacturer can get the parts cheaper and make revisions to the system as this is a typical business practice in THIS industry. Besides the money is in the software and the licensing fees. It took Sony almost 5 years before the PS3 was sold as profit and the Xbox 360 is making profit but it took a while to offset the initial R&D cost of the first Xbox. now the Kinect on the other hand is Profit day one thanks to Microsoft removing the Kinects CPU and other features. Feel free to disagree but I'm basing my info from Share Holder Reports.
How much of a loss is nintendo taking on the wii again? How about apple?
"All brand new hardware is sold at a loss" LOL WHAT? Companies 95% of the time usually price their products way over what they are really worth.
Ati is mostly right, but there are exceptions. Mostly, it's like the razor/razor blade model or printer/printer cartridge model where you sell the initial purchase at a loss (the razor, printer or console) and make it up with the additional purchases the customer needs to continue using the product (the blades, cartridges, or games). Nintendo and Apple are exceptions. Nintendo is quirky and has always played by their own rules while Apple banks on it's products being chic and charging a premium.
Cause when you do you will see a capital "THIS" followed by industry meaning Video Game Industry. So don't bring up Apple which DOES NOT have a video game division. Nintendo Wii initial Manufacturer cost was between $180 and $210 (around $80 now) but remember Best Buy, Wal-Mart, Toys R US etc were not paying Nintendo $180 per unit cause the stores have to make a profit when they sell them to you for $249. Every heard of the term Wholesale vs. Retail? If not then take a business class.
It remind me of the PS1. When Sony sold it at a loss to compete with the other console makers. Hopefully the end result pays off :)
Really? These are the same people who put out the 599 console. I hope they lose their asses, because they deserve to. If they did this with the PS3, maybe they'd still be in first place.
Gusbricker, WOW You sound like a prick.
Your dumb, Sony sold the ps3 at a huge loss, they claimed it would cost then around $1000 to make, and sold it for $600.
Do you own stock in Sony? If so, I apologize. If not, shut up...and if the PS3 cost over 1000 dollars, then Sony is dumber than I thought.
Yes it was easy to expect this from Sony it takes common sense. Let's look at what you just said... "These are the same people who put out the 599 console." ...and now what was the result of releasing the PS3 at 599? Public scrutiny. Remember PSPGo and it's price? Public Scrutiny. If you didn't expect this or anything similar from Sony then you underestimate common sense and how if you make two highly criticized pricing decisions you'd learn from them.
Where were you when bluray came out? Bluray cost $1300 back then and I got mine(ps3) for $700. Why would I complain with such a deal. Damn haters this days. People give them good value and they still complain.
Wait, you bought a blu-ray player for 700 bucks(above the ridiculous retail) and you're calling me an idiot? lol Now I feel so much better about waiting until it was 300 bucks.
i wasn't even paying attention to psv stuff because i would never spend 400 on a hand held when i have a ps3. After seeing in and seeing the 250$ price tag i am defiantly considering it.
It's a strategy that worked with the ps3 so maybe it will work with the vita.
Im sure the impact will be minimal as well.
360 was also sold at a loss. ms and sony always do that but for good reasons. nintendo on the other hand like to make profit from the start thats why they NEVER start bleeding edge look at wii u it uses 2008 graphics hardware(r700) with no usb 3 support and only 1.5 gb ram which isn't nearly enough for an 8th gen console. the wii u is a 7.5 gen console at BEST. if the leaked specs are true its only 5-6 times more powerful than ps3/360 which is NOT a generational leap because high end pcs are over 20 times more powerful than ps3/360 the only reason games don't look 20 times better is because console limitations are holding back developers and games sell better on console so they are forced to work with the outdated hardware.
There is a difference between system memory and graphics(video) memory. Go price quality 1.5gb video cards. Just wanted to get that out there because way too many people on N4G confuse the two. Also, I hope the loss for Sony isn't too substantial. I will be picking up the WiFi version day one and possibly preordering it. Also, it is very unlikely that the new Wii console will have over 1GB of VIDEO memory.
Actually, it would be more far to say 2006 hardware, even though it's more or less a glorified gamecube. It was out before 2008 so it's no where near that years hardware. Edit: oh sorry, your talking about wii u specs, that im not sure of.
@Apophis lol good one.alot of people on this site are delusional(so I'm just trying to belong) haven't you noticed ? just look at the comments made on most 360 related articles. Its the name of the console that makes me dislike it so much. I bet Nintendo thought the name was brilliant.
i dont think the ps3 broke even yet it took sony like 8 years for the ps2 to finally make a profit.
The PS3 became profitable last march.