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Analysts Believe a PS Vita Price Drop is Necessary for Profitability

Sony’s new handheld gaming device has hardly left the gate after its release on February 22 and analysts are already dictating the necessity of a price drop for the PS Vita.

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webbsod3059d ago

to be profitable or to not flop? not the same thing.
org xbox needed to raise there prices to be profitable but they did not. they lost some 108 on each org xbox. it was about the games and accessories. hints why 360 was packaged with games and such.

darthv723058d ago (Edited 3058d ago )

we know that lower prices induces curiosity in consumers. Yet there would need to be something more. Something to entice appeal. Lower prices is somewhat appealing in and of itself but even lower prices is not a guarantee of success.

In this tablet/smartphone happy world a dedicated unit like the vita can get overshadowed because of what it doesnt offer as opposed to being seen for what it does.

Sony, more than likely, had to be thinking of that aspect and have something planned if the casual consumer doesnt bite. Thankfully I'm not a casual consumer. It appeals to me just fine.

Soldierone3058d ago (Edited 3058d ago )

That's the thing, these analysts are making it out to be like a price drop is going to shock and awe the consumers. In order for that to happen Vita needs to be known at the 250 dollar price point, so the lower price looks like a bargain, not a desperation move.

Honestly, Sony should have just released them all at 300 and 350, then price dropped it to 250 and 300 to make these people shut the hell up.

The vita itself doesn't need a price drop, it just needs a bundled deal and cheaper memory cards.....Must be easy being an analysts, just call any launch that isn't Apple a failure and then make up some BS excuse as to why your wrong a year later....

I also like how the Vita is so "overpriced" yet these people complaining probably go out and buy the 600 dollar Icrap the second its released....

supremacy3058d ago

Well to me it makes sense.

The more people get their hands on this device, the more games it can sell.

The more games and accessories it sells the better things will get.

wolokowoh3058d ago

Unfortunately this also works in reverse. The more Sony loses on Vita the less it has to invest in first party titles such as Gravity Rush. If Sony sold Vita for $100 it'd sell like crazy but it'd also bankrupt the entire Playstation division in less than a year. It's a balancing act. The $250 price point right now is what Sony believes. They're getting a decent install base and not losing too much getting there. When Sony can afford to or are forced to drop the price the price will drop.
Even with a price drop though, the high cost of memory would still be a problem. Should Sony charge a lot for their proprietary format? Yes, they made two for Vita and should make that money back, but the prices now are ridiculous. To be profitable but reasonable 32gb should be $60 or $70(32gb micro sd cards are $30), 16gb should be $30 or $40(micro sd $15), and 8gb should $20(micro sd $8). Just over double cost is fair to Sony and consumers and highly profitable. The 4gb cards shouldn't exist though, not because there isn't a demand for them, but because it prevents people from trying digital versions out and downloading demos. It cuts a huge part of the online/connected experience that Sony is emphasizing out. 8gb cards are the balance and should be the minimal size. There should also be larger card sizes, even though Sony would charge over $100 for them and rightfully so. Still I see no reason why they shouldn't be there for people who want the luxury of carrying around most if not all of their games. Sony has created the demand for the product so there is now a reason for the memory card market to go over 32gb and for Sony to invest in doing so.

rezzah3058d ago

It would make sense as long as sales are consistently low.

Fluctuations shouldn't be ignored so patience is needed first before making such a dire decision.

If they lower the price too soon, they may end up making less money because people would have bought it for 250.

Let the 250 people buy it, then for those who cannot afford such a price (makes you wonder if they own a overpriced apple product) can purchase the Vita for less in the future.

morganfell3058d ago (Edited 3058d ago )

I agree. There are more great games coming for it just a short time away. No doubt E3, only a few months off will shows us the new Bioshock title, the new Call of Duty, and so very much more as regards Vita/PS3 connectivity. That will stun the consumers into buying.

Why drop the price when they have cards up their sleeve that can drive sales?

If you are one of those hoping for a price drop soon I wouldn't hold my breath...

Such things as E3 will bring induce more sales, particularly with the price that was hailed as a victory. I do not care about the 3DS price. It isn't a comparable product. You may fool yourself if you wish but you are wrong.

Personally I am tired of all this whining over the price. It sounds like they are texting their remarks from pirated wifi while they huddle at an Occupy protest rally.

It's called technology and when it is new and cutting edge it costs money. Want the facts? There is no such thing as a good deal. You get what you pay for. Invest wisely, educate yourself, work diligently, and you will not have to be concerned about a FAIR PRICE THAT OFFERS SO MUCH BANG FOR THE BUCK.

Highlife3058d ago

I'm also tired of the whining over the price. People on this site were hoping and praying that the price would be at 299 or 250 and now that it is they still want a price cut. When the price is cut to 199 there will still be an outcry that it is to much and it should be lower. Some people are so damn cheap. I know that it costs quite a bit of money if you want the thing. But I also know that they are competitively priced. Other device such as tablets or smartphones are way more expensive.

Soldierone3058d ago

I think Sony needs to pull out some cards and play the "exclusive" game with Call of Duty and EA titles. Perhaps get Nintendo on board, but thats it. Dont let Call of Duty ANYHTING go to the Iphone or Iwhatever, or other smartphones. Doesn't matter what it is.

Here is what I see happening now. Vita gets full fledged Call of Duty, gets the sales, but that one person "So I have Call of Duty on my Iphone...." Pulls out a crap casual game where you just touch zombies to "shoot." Take that away and it becomes "Where is my Call of Duty! I want it! Now I have to buy a Vita...." which is good.

Diver3058d ago

sing it morg. im as tired as you listening to these people with unrealistic expectations on how the world works. theyre probably in the 49% that dont pay taxes too. i have a one house paid for and a mortgage on a second and i could still afford a vita.

Mikelarry3058d ago

i would definately get one if the price goes lower

Genecalypse3058d ago (Edited 3058d ago )

Theyd make less money that way. Look at the 3DS, at 250$ it was struggling, so Nintendo cut the price down drastically and now its doing very well. I guess people think 250$+ for a handheld is too much these days. Hell thats how much a damn PS3 costs, that would give you much more value for your money.

If Vita was cheaper it would be selling much better, hell Id buy one, but then theyd be losing money on every single device sold I dont think Sonys in a position do that, especially if it was *made* to enter at 250$. The 3DS got one because Nintendo had leeway something the Vita doesnt.

Titanz3058d ago

That's the problem. I'd rather buy a console than a handheld, for that price (which comes with a harddrive, and is Blu-ray supported).

KonaBro3058d ago

you realize Nintendo is losing money on each 3DS sold now right?

Genecalypse3058d ago

Yes, and Sony too with the Vita. Which is why a price drop from them wouldnt be realistic

http://andriasang.com/comw7...

Saladfax3058d ago

@Kona

Most recent consoles have sold for a loss, intending to make up the difference via software.

When the PS3 first launched, it supposedly cost around $805 per unit for manufacturing. Finally, in 2010, they were only losing about $18 per unit. That's quite a few years of losses. I'm guessing by now they actually profit on each one sold, but I'd bet they'll never sell enough straight-up hardware to break even on the initial loss-leader.

But that's kind of the point. Their gaming division is profitable from software, not the hardware.

KonaBro3058d ago

The Vita was designed to be profitable from the get-go. Its the entire business side of Vita that they hope to be profitable soon.

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