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.

[webbsod]

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.

[darthv72]

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.

[Soldierone]

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....

[supremacy]

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.

[wolokowoh]

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.

[rezzah]

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.

[morganfell]

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.

[Highlife]

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.

[Soldierone]

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.

[Diver]

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.

[Mikelarry]

i would definately get one if the price goes lower

[Genecalypse]

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.

[Titanz]

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).

[KonaBro]

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

[Genecalypse]

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

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

[Saladfax]

@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.

[KonaBro]

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.

[yewles1]

It ain't gonna' happen this year, not w/o losing features...

[wolokowoh]

It could happen by late October/late November because by then, the parts that make Vita will be considerably lower in price(min $30 in part prices alone) as well as a slight decrease in manufacturing costs. Sony would only be losing as much money as they are now if they drop it to $200 but $30 more per unit if they drop it $170. It really depends on the sales. If the US and EU markets show low but stable numbers like Japan did which is unlikely because its clear why Sony failed in Japan, then the price is going to go down fast or Sony will abandon the Vita, which is also very unlikely at least to happen first.

[theeg]

if they get the price to $199 with a good game and a 16gb memory card, i'll buy 1 for sure, maybe even two for my little brother, right now, i can wait, we have psp's, ds's, and ps3, 360, and 2 gaming pc's ......

lol...too many games

[aDDicteD]

going to buy one as soon as there is a price drop and a good solid vita game titles

[Titanz]

But it came bundled with a lot of perks. NDS playback, 2gigs of flash memory, 2gig SD card, AR cards, and bundled-in software.

I'm not comparing devices. Just pointing out all the perks consumers got when they bought a launch 3DS, and it was deemed too expensive by the mass media's standards.

[tiffac008]

That's the thing this price issue wasn't started by the gamers but by the media at $250 there was little complaint about the price of the 3DS from gamers, even when it was revealed that it only took $101 to make.

The real issue for the 3DS was the lack of 2nd analog controller and lack of games after the launch and not the price.

This all came about after Ninty dropped the price to stomp the momentum of the Vita after E3(which is a stroke of genius) and the media felt they where correct all along and now the Vita is taking all the heat regarding its starting price.

[tiffac008]

I think Sony will try to get more PS Vita games and apps out to entice buyers before they resort to any price drop.

Besides if Sony can weather the expected low sales and reach the holidays then they can use the special discounts as their temporary price drop for the year.

For me a price drop is too early when the games/apps that can attract a specific buyer are yet to become available.

If everything else fails then they can do the price drop.

[GraveLord]

Doesn't need any price cut.
How about we wait to see week 1 sales before jumping to conclusions?

All it needs is AAA games and those will come later in the year.

[josephayal]

Omg another article

[smashcrashbash]

This 'price drop talk' only happened after Nintendo dropped theirs. Everyone was ecstatic when they found out they didn't have to give an arm and a leg to buy the VITA. Now, as per usual, people are influenced by the idiocy of the internet and trying to pretend that the price of the 3DS was even in league with the price of the VITA.

Nintendo dropped the price not to be clever but they thought they could have gotten away with charging high prices and getting a high profit from a cheap device but realized people didn't go for it.The 3DS is not the VITA. The VITA has more then the 3DS is and ever will be. To ask for it to be close to the same price as the 3DS is ludicrous. The screen alone outmatches the 3DS.

BTW of course if you give something away for peanuts of course you will sell more of them if I was giving away luxury sports cars for $2,000 each of course I will sell more of them.Don't understand why people want higher quality for less money. That is not how the world works. And people wonder why no one ever wants to put in more powerful batteries into devices. It's because they know very well you will still want it for the same price.

'I want batteries that last 15 hours'
'Will you pay the extra cash for it'
'No'
*hands 5 hour battery*

@ quality_over_popular. Yeah I don't how much more 'quality games' people want. the 3DS launch titles was one of the worst ever and people still crowded to get it. VITA has just about every genre covered with a huge list of games and people are still saying 'I'll wait until it get more 'quality games'. Not sure exactly what else you are waiting for exactly.

[LeoDDestroyer]

Original psp launch price was 250. I really don't understand why this price point is so unbearable now. Hell when I got mine it was 299.99 b/c it had bundle with it a 1gb memory card.

[madjedi]

You know how it goes, they just spent $300 upgrading to the newest phone, so they have to complain about something being too expensive.

Which will make me laugh all the more when carriers start billing customers $600 for the newest iphone instead of eating $400 off of the price and charging $200.

Then maybe the hypocrites will stop whining about it's too expensive.