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I think Sony are making a profit from the PS2 even if the price has dropped because one thing we already know is that it has become cheaper to produce it and since the release of Gt3 the demand has increased. I mean they wouldn't be doing this if they werent gettingany profit, they aren't a charity organization but a firm whose main aim is to make a profit.
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Logan wrote:
Oh, and to the person who said that no company
> would make a loss on its products, you are severely wrong!
I dont see anyone in this topic who said that.
Oh, and to the person who said that no company
> would make a loss on its products, you are severely wrong!
I dont see anyone in this topic who said that.
I was talking about the guy who made GT3, ssxpro.
Sony are losing money on every PS2 sold, and are the first to point this out! In fact, they see it as a great idea for increasing profit!
Let me explain. Imagine sony sold the PS2 for the amount it cost to make. The price would be about £400+. Could you see as many people buying it compared to when it was £300? NO!
So, more people buy the console at first.
Next, these people buy lots of games. Sony get profit from printing these games. As Sony worked it out, they would need every console owner to buy at least X amount of games/peripherals to make a profit per unit.
So now loads of people have the console, so games companies make more games for it, making more people want the console. Demand rises, production increases, production costs decrease, Sony make less loss on every console.
The can lower the price making more people buy the console.
It may appear that they are making a huge loss? Not at all! If they kept the console price high, then less people would buy it, less games would be made for it, and more people would buy rival consoles.
In the long term, people only buy a PS2 once. They will then go on to buy many games, controllers and peripherals for the console. It is this that makes the profit!
Furthermore, as the console gets older, production prices decrease, and Sony may actually make a profit per console sold in the future... thus beginning to cancel out the initial loss.
In fact, Sony made huge losses at first. Not only did the console lose profit, but it turned out many Japanese gamers bought the console, and then just used it to play DVDs. Just before western launch, Sony had to completely relocate their chip production plant, and this cost soooo much!
But in the long term, they will make more money from games and peripherals.
Oh, and to the person who said that no company would make a loss on its products, you are severely wrong! ALL printers (pretty much) are sold at a loss. The money is made from the PRINTER INK CARTS... like games, these have a huge profit margin!
Likewise, mobile phones are given away free on contracts. The phones are certainly no free to make, but the companies make money from the phone calls made, and line rental!
Let me explain. Imagine sony sold the PS2 for the amount it cost to make. The price would be about £400+. Could you see as many people buying it compared to when it was £300? NO!
So, more people buy the console at first.
Next, these people buy lots of games. Sony get profit from printing these games. As Sony worked it out, they would need every console owner to buy at least X amount of games/peripherals to make a profit per unit.
So now loads of people have the console, so games companies make more games for it, making more people want the console. Demand rises, production increases, production costs decrease, Sony make less loss on every console.
The can lower the price making more people buy the console.
It may appear that they are making a huge loss? Not at all! If they kept the console price high, then less people would buy it, less games would be made for it, and more people would buy rival consoles.
In the long term, people only buy a PS2 once. They will then go on to buy many games, controllers and peripherals for the console. It is this that makes the profit!
Furthermore, as the console gets older, production prices decrease, and Sony may actually make a profit per console sold in the future... thus beginning to cancel out the initial loss.
In fact, Sony made huge losses at first. Not only did the console lose profit, but it turned out many Japanese gamers bought the console, and then just used it to play DVDs. Just before western launch, Sony had to completely relocate their chip production plant, and this cost soooo much!
But in the long term, they will make more money from games and peripherals.
Oh, and to the person who said that no company would make a loss on its products, you are severely wrong! ALL printers (pretty much) are sold at a loss. The money is made from the PRINTER INK CARTS... like games, these have a huge profit margin!
Likewise, mobile phones are given away free on contracts. The phones are certainly no free to make, but the companies make money from the phone calls made, and line rental!
Here it is:
Babylonian wrote: (He was Wookiee`s old account)
>Sony knew they'd be selling the machine at a loss - they've been saying it for almost a year.
>Now that the US launch has happened, and when the UK/Euro launch arrives, games sales will increase drastically. Sony know they have to shift games to make profit from the licence fees, and I think they will acheive those profits.
>Do you really think they'd invest billions in a chip manufacturing plant without knowing what their targets would have to be to recoup that cash?
Babylonian wrote: (He was Wookiee`s old account)
>Sony knew they'd be selling the machine at a loss - they've been saying it for almost a year.
>Now that the US launch has happened, and when the UK/Euro launch arrives, games sales will increase drastically. Sony know they have to shift games to make profit from the licence fees, and I think they will acheive those profits.
>Do you really think they'd invest billions in a chip manufacturing plant without knowing what their targets would have to be to recoup that cash?
They guy who made it, if you mean GT3 was (well the leader of it) Kazunori Yamauchi. If you meant the boss behind the PS2 in general, I think that`s Ken *Katuragi*. I`m very unsure on the spelling of ** but its something like that.
As for the thing about losing money on the PS2 or not, I remember Wookiee Monster mentioning that even if the PS2 was losing money, the sponsorship and usage of Third Party groups easily made up for the loss.
It was something like that, so its possible the PS2 is losing money through console production still, but getting it all back other ways.
Ask Wookiee for full details.
As for the thing about losing money on the PS2 or not, I remember Wookiee Monster mentioning that even if the PS2 was losing money, the sponsorship and usage of Third Party groups easily made up for the loss.
It was something like that, so its possible the PS2 is losing money through console production still, but getting it all back other ways.
Ask Wookiee for full details.
Yeah, if This Is Football 2002 is the biggest seller right now.....whats gonna happen when MGS2 comes out???Blimey
CDouch wrote:
> since the price has droped 2 of my mates have got one.and one of them,a few days
> ago was saying they dont want one and wont get one.then he got a ps2 yesturday.
I had a mate of mine who thought I was foolish to spend £300 on a PS2. He used to say that he would stick to PC games and that if he wanted a DVD player he would get a normal one. And guess who got the GT3 pack @289.99, thats him. Now the only thing he talks about is how realistic it is. You gotta give the guy who made it a lot of respect (i dont know his name though).
> since the price has droped 2 of my mates have got one.and one of them,a few days
> ago was saying they dont want one and wont get one.then he got a ps2 yesturday.
I had a mate of mine who thought I was foolish to spend £300 on a PS2. He used to say that he would stick to PC games and that if he wanted a DVD player he would get a normal one. And guess who got the GT3 pack @289.99, thats him. Now the only thing he talks about is how realistic it is. You gotta give the guy who made it a lot of respect (i dont know his name though).
See, its already have ing an impact on PS2 haters.
since the price has droped 2 of my mates have got one.and one of them,a few days ago was saying they dont want one and wont get one.then he got a ps2 yesturday.
Correct, just like all other companys in the world.
It can only be a good thing for all us PS2 owners though, soon, all goods may have a price drop.
It can only be a good thing for all us PS2 owners though, soon, all goods may have a price drop.
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