100°

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?"

Read Full Story >>
gamerant.com
Erimgard4328d 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.

DarkHeroZX4328d 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.

Erimgard4328d ago

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

Erimgard4328d 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.

DarkHeroZX4328d 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.

hkgamer4328d 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 4328d ago
Anon19744328d ago (Edited 4328d 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!"

TBM4328d 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?

Mustang300C20124328d ago (Edited 4328d 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.

Mustang300C20124328d 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 gameAr4328d ago

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

Metal-X4328d ago

There's that word again.....

TheGamingArt4328d ago

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

miyamoto4328d ago

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

Show all comments (34)
400°

Sony Rewards Program Is Coming To An End on Dec. 31, 2024

Sony Interactive Entertainment has announced that it is ending the Sony Rewards program on December 31, 2024, and as a result that date will be the last time possible to redeem points and access your account.

helicoptergirl2d ago

This is a shame. I've been using it since the start. It had a few problems and issues but overall I did end up saving a little bit over 60 dollars using this program. There was probably not enough people using it.

Cacabunga2d ago

Is it playstation stars?? I really never understood it. I am still level 1

PS_HCT2d ago

This is not playstation stars. Sony Rewards is a US rewards program linked to a visa credit card.

darthv722d ago

I just checked... I have 144 points at the moment. Not even enough to get a $5 PS card. I can get a $1 digital gift card to Target or home Depot though.

blackblades2d ago (Edited 2d ago )

I thought they were been done with this, I redeem some good stuff with this in the past. Wonder how much i got its been awhile

OtterX2d ago

I've gotten so many free games throughout the years w this program, this sucks. I've been with it since the beginning.

I just run a majority of my needed purchases through it and pay it off immediately instead of using cash or debit. The most recent was on Tuesday I got a $10 dlc free. It was great as long you're not borrowing out large amounts of money that you don't have.

ChasterMies2d ago

Realistically, those weren’t free games. You could have used another cards rewards points or bought Sony products on sale and then used the savings to buy PlayStation games.

OtterX2d ago (Edited 2d ago )

Well there was a large boost on any purchase made on PSN, so there was an incentive to use over other cards' rewards. It used to be better, then they lowered it. I forget the exact multiplier though.

I pretty much got this $10 DLC free this week just by resubbing my PS+ Premium. (On sale during Days of Play) Not a lot of other cards would give that much back

dumahim2d ago

Right. I can do the same thing with my credit card rewards, but I have much more flexibility in what I can redeem those points for, including buying PS games.

shadowT2d ago

I never owned the credit card. Was this program available in Europe and Asia?

Profchaos2d ago

Seriously it was awesome Ive gotten a few free psn vouchers out of it.

FPSRUSSIA2d ago

i remember getting Assassin creed black flag for free with Redeeming my Points for 10 dollars when it was on sale this is very sad news.

OtterX2d ago

I actually believe that was one of my first cashouts on the program! haha

I remember I had just gotten the PS4 and I used it on Black Flag or Battlefield 4 to go with it.
I'm pretty sure I remember it being Black Flag though! (Great choice, as it became my favorite AC of all time)

Show all comments (25)
200°

Sony shares big new PS Plus stat, but not the one we want to see

PlayStation Plus has improved the split of PS4 and PS5 players on its priciest tiers, but Sony continues to hide total subscriber numbers.

Read Full Story >>
theloadout.com
mandf22d ago

lol acting like it’s equivalent to ms numbers

Mr Logic22d ago

Uh...They're definitely not equivalent.

"Microsoft’s Xbox Game Pass service now has 34 million subscribers."

"the total number of PS Plus subscribers across all tiers was 47.4 million"

darthv7222d ago (Edited 22d ago )

That PSN number seems like it should be much higher... especially when you consider that PS4 alone has a sell through of over 117m. To not even be at least half that is rather interesting.

To the XB side, having 34m to an install base of roughly 50m (XBO sell through) or even 85m (360 sell through) is a greater percentage of unit to member ratio than PSN.

bloop22d ago

That's not the "gotcha" you think it is Darth.

darthv7222d ago

^^it's not supposed to be bloop.... it's just an interesting observation.

Einhander197222d ago

darthv72

"That PSN number seems like it should be much higher... especially when you consider that PS4 alone has a sell through of over 117m. To not even be at least half that is rather interesting.

To the XB side, having 34m to an install base of roughly 50m (XBO sell through) or even 85m (360 sell through) is a greater percentage of unit to member ratio than PSN."

Have you ever heard of a PC before? I hear they are pretty popular.

fr0sty22d ago

MS started lumping gold subscribers in with those GP numbers... keep in mind.

+ Show (2) more repliesLast reply 22d ago
shinoff218322d ago (Edited 22d ago )

What. Definitely more os plus subscribers but that makes sense due to actual console sales

Darth the difference between the bases are huge your right but you gotta think. Ps players buy more games, where as the Xbox base relies on gamepass for their gaming. So it makes perfect sense

darthv7222d ago (Edited 22d ago )

What makes perfect sense though? You say PS players buy more games... so then logically there should be more PS+ subscribers given the increased number of online multiplayer games in the PS4 generation alone. The PS4 was the first time that + was required for online play much like Gold was for 360 users.

Keep in mind we are talking subscribers, not simply XB/PS users. I assume you meant to say offline single player games, which is most likely true as well. That gen also saw a significant increase in games with an online component comparted to the previous gen.

victorMaje22d ago

I for one will be going back to essential at the next renewal. When I feel a game is good & right up my alley, I’ll check trusted reviews & just buy it.

jznrpg22d ago (Edited 22d ago )

I have the top tier until 2028 as they gave me a massive discount for all the years I had left but I’ll most likely go to essential as well. I buy my games but my kids do use the service occasionally. They do prefer to own their games as well since any game can leave the rental service at some point and they don’t like that idea. They mostly use it to demo games then ask me to buy games if they really like it.

RedDevils22d ago

For me, I will cancel it all together but unfortunately I still have it till 2030 lol

meganick22d ago

I would like to see Sony add a fourth tier of PS Plus for people who just want to be able to play games online without any of the perks like monthly games, store discounts, or anything like that, and it should cost $20 annually, $30 maximum. There’s no way I’m paying $80 just to play games online. Even the original $60 fee was too much, and I would often wait for sales to re-up my subscription.

P_Bomb22d ago (Edited 22d ago )

Essential is too expensive, I agree. We’ve got one Essential and one Premium sub. Dropping the Premium when it expires.

gamerz22d ago

Just let my subscription lapse for the first time since 2010. Will sub again every now and then for a month or so to access my old ps+ games but for me it's the end of an era.

DivineHand12522d ago

Let those numbers continue to drop because it is now too expensive. $80 per year just to play online. I noticed they didn't offer any discounts on the subscription or controllers during this year's days of play for the first time in many years and they will feel it when people choose not to renew.

My subscription will lapse next month and it will stay that way until further notice.

KevtheDuff21d ago

There were savings on subs and controllers here in the UK? I bought a controller yesterday in the sale..
It would be weird if those deals were not in other territories too?

300°

Sony Says The PS5 Is Its “Most Profitable Generation To-Date"

During Sony’s recent business segment meeting and investor presentation regarding its game and network services, the PlayStation company revealed that PlayStation 5 is the company’s “most profitable generation to-date.”

It’s the top slide of the presentation, showing that in its first four years, the PS5 generation has already hit $106 billion in sales, having almost caught up to the PS4’s total $107 billion generated.

Operating income for the PS5 generation has also already surpassed that of the PS4, having now reached $10 billion.

ApocalypseShadow24d ago (Edited 24d ago )

I wouldn't doubt it. They released a high quality system. A lot of high quality games from themselves and their support of 3rd party developers and indies. They released many high quality remakes and remasters. They released a high quality GaaS game going against the naysayers thinking Sony would abandon single player games. And they most likely are profiting a lot more than PS1, PS2 PS4 and the loss leading PS3 that drained all their profits.

Now, I'll wait to see what's cooking tomorrow. But can you use some of those profits to better support your high quality VR headset? Because, by supporting it, you can sell more games and more systems and make more profits?

jznrpg24d ago (Edited 24d ago )

I want RPGs for PSVR2! Good ones of course

shinoff218324d ago

If it had some rpgs I would buy right fking now. It looks dope and alot of fun, but it's biggest game resident evil 4(maybe) I've got no interest in. I'm not a fan of racing games, even with that metro game coming i was never much into that series. Rpgs would be fantastic.

MrNinosan24d ago

Lemme know if ya wanna play some Zenith 🙌
Bought it at release, but haven't played it more than 1-2 hours but for sure on my "todo list".

Cacabunga24d ago

Normal when they released mostly cross gen games so far. That’s a lot of money saved..
We haven’t seen what PS5 can do yet. 4years in and PS4 games still look great to me. The gen leap isn’t quite there yet.

--Onilink--24d ago

The interesting metric for me is the $106billion in operating income/profit (not sales as mentioned in the article) reaching the same as the PS4 did with only half the consoles sold.

In particular because they all are supposed to be making the most per hardware sold after a few years when manufacturing costs are down.

So even putting inflation aside(and the higher console price), it is interesting that they could reach PS4 $ with just half the consoles sold.

Maybe there is more to the metric thats whats seen at face value, but they have clearly been making a lot more money than before on the software side (with also less games released I suppose, given its only been half the generation so far)

VersusDMC24d ago

The bulk of the money has to be coming from the 30% cut on all games and microtransactions. Especially on all the free to play juggernauts like genshin, apex, fortnight, etc.

--Onilink--24d ago (Edited 24d ago )

@Versus

They are definitely making a lot on that for sure (which the $70 price increase factors into as well), but its not like many of those games werent around for the PS4 too.

They might be counting the gen as a whole and not just PS5 itself (so extra profit from PC sales, whatever that may be)

PS+ price increase and different tiers probably amount to part of that too.

But in general, its still quite a surprising metric. Half the time, half the consoles sold, less first party games released so far and still already making more of a profit than last gen is quite something, and as mentioned, there is probably more to it that we dont know, after all, since we are talking about operating income, all the expenses they have also factor into it, so it is also possible that they have found ways to significantly reduce that + all the means of increased revenue that appear to be factoring into the equation

All in all, just an interesting situation from a business perspective

porkChop23d ago

It's for the whole generation, so it would likely be including PC. They also make much more profit on digital sales vs retail, and digital is far more prominent these days. The generation also started at the height of COVID when everyone was home, spending far more money on gaming/hobbies. It makes a lot of sense for this gen to be more profitable.

Abnor_Mal24d ago

This will surely shut up all the new trolling accounts trying to spread lies and non facts in other articles comment sections before this article is posted.

Hofstaderman24d ago (Edited 24d ago )

Obscurely, those trolls or troll will not show in these articles as the truth is contradictory to his or their orchard-sized daily dose of copium and hopium.

Tacoboto24d ago

Or... They're intentionally trolling you guys specifically. Because they know it upsets you so easily.

Name-dropping Orchard, after this many months? How long has it been and he's still in your thoughts?

Elda24d ago (Edited 24d ago )

I'm quite sure the individual is reading these positive comments downvoting & seething at the same time. Edit: It just downvoted my comment...lol!!

Hofstaderman24d ago

No I'm entertained by this individual. I love unhinged people, they are so interesting lol.

repsahj24d ago

Wow! I am super impressed that in just 4 years, ps5 already caught up to the PS4's. Congratulations.

JackBNimble23d ago

That happens when half of your games are cross platform. I'm still waiting to see what the ps5 is capable of, because they sure haven't pushed any limits.

And where are all these ps5 exclusive games?

sagapo24d ago

Not really surprised as Sony barely has any competition at the moment.

Show all comments (47)