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Boxofit.com - View topic - E3 Discussion
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THREE HUNDRED NINETY NINE US DOLLARS
THREE HUNDRED NINETY NINE US DOLLARS
THREE HUNDRED NINETY NINE US DOLLARS

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Wed Jun 19, 2013 4:17 am
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Sega hardware definitely died a hero...

I just don't like this new gen of consoles... I feel like if I were to get one, it'd be the PS4 - but that's a half hearted decision based on choosing the lesser (granted, significantly lesser) of two evils.

Microsoft lost as soon as they considered an oddly EA approach to DRM. Sony, I feel, has lost sight of what matters by charging people access to a network that costs them virtually nothing* to maintain.

*I'm aware there are costs involved, and over the course of a year, those costs can be rather staggering - but here's the thing: Even with this whole "PlayStation Plus" thing, you still see advertisements, content developers still strike contracts to bring new media to your attention, and money is constantly changing hands. Not to mention that with each purchase of DLC, money finds it's way back to Sony -- and neither the pie nor Sony's slice of it will be shrinking any time soon, mark my words on that. The money generated between Targeted Demographic Adverts, DLC purchases, Game Purchases, Contracting Fees, Exposure Fees, etc -- all total to significantly more the cost of network such as the PSN: Which when you strip it to it's core, is essentially a large file-market network (such as steam - which, mind you, has sales FAR MORE OFTEN and has never felt the need to charge anyone anything).

Many people are saying that charging for multiplayer will allow the to release the PS4 itself cheaper than they normally would: To which, I shake my head in vigorous disagreement. It's because of quality engineering and the lowering costs of technology and mass production that they can sell at the price they are -- do you actually believe a company such as Sony -- who has a history of slapping the word "Vaio" on INFERIOR laptops and selling them for twice the cost of their superior competitors -- would EVER sell a system at a loss, hoping to make up for it with monthly subscription dues? That's bad business - especially given the success rate people have had in using custom firmwares and networks on devices such as the Xbox, 360, PS3, and iPhone: And don't think that Sony isn't worried about the 'small percentage of the market that would jailbreak their device and privatize their file-market' because they are HUGELY CONCERNED about just that. Sony has been supports of DRM policies and even legal action such as SOPA and PIPA.

Sony wouldn't do anything at a loss -- no publicly traded organization would, because it's board of directors would never allow it. It's bad business. At the time of sale to the retailer, Sony has made enough money to cover the costs of manufacturing and all associated costs, as well as make a reasonable profit. Atop that, the manufacturer profits on this transaction as well, having purchased the unit for $XX cheaper than the $399 they are contractually obligated to sell it at.

The same is true of the PSN. The people who profit from having their content on the PSN, are paying percentages of that back into the PSN. The people who advertise there are paying flat rate contractual fees. At the end of the day -- all of this money: The content developer's money, Sony's money -- ALL COMES FROM ME AND YOU. We, the gamers, are ALREADY PAYING FOR MULTIPLAYER with every DLC purchase, Game purchase, Console Purchase, Licensed Accessory Purchase, etc, etc, etc...

We all need to realize that Sony is not some near-bankrupt company who's only doing this as a means of covering an expense they otherwise couldn't manage: There is basically no longer a question of expense - it's a turn-key money making system. The new puzzle, for which they've settled on a solution, is how to increase profits from it even moreso.

It's the same reason the Console is 399 - no matter what form of currency you're using. Some people are going to end up paying WAY MORE for this console than others, just because of the system of currency they use.


Wed Jun 19, 2013 8:41 pm
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Even so, the PS4 seems to be the stronger of the two consoles.


Wed Jun 19, 2013 10:35 pm
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Not to be the Sony Defense Force, just kidding, I will always be the Sony Air Defense Force but the PS4 version of PSN has shown great improvements in concept over the PS3 version. Also, after the lulzsec incident, Sony probably saw that its Laissez Faire approach to PSN wouldn't work and began to implement a series of investments and improvements, which doubtless would cost more money than they had spent on it to that point in time.

On another point, I am typing this very post from a one of these "inferior" Vaio things you talk badly about, and it has yet to crap out on me. By this point in its time with me, my HP laptop's mobo had melted under the pressures of regular use.

Selling hardware at a loss, despite how unprofitable it may seem, actually is a frequent tactic of so-called "devices and services" companies, because they make a ton more money from services than the devices. There are of this tactic, because they make up for it in other areas.

Picture this. said it costed Sony ~$800 in 2006 to make PS3s. They sold for $600. So, how do they make that $200? Games and PS+. PS+ is $50 a year. Games are $60 one-time cost. DLC are $10. Assuming Apple-sized bites and four DLC per game, It will only take 5 games and a year of PS+ per console for Sony to break even on a PS3 sale. Only 5 games? I have 25 on my shelf, and at least 12 digitals. People come for the cheap hardware, and stay for the compelling content. It's far from bad business. It's just a shiny commercial tactic with smoke and mirrors to get the thing into your house, so you'll be on it for life. It works.

I assumed a 30% cut for Sony on game sales in that previous example, but the bit of snapcount research I did and back of the napkin math indicates that the cut is actually closer to 10% per game. That's not really a lot for something with an install base of around , because I know not everyone buys a billion video games like I do. How much do you think it costs to maintain the Playstation Store? More than $14 million (including one DLC for each game, which is probably far, far from typical).

What else... right, having already paid for multiplayer. Don't forget, it costs money to make video games. People at the top who make decisions, people under them, designers, dreamers, writers, programmers, modelers, videographers, musicians, artists, testers, packagers, distributors, marketers, shills who post on reddit and 4chan to drum up viral support for games, all of these people are employed by video game companies, at prices far over minimum wage. All of that factors into your sixty bucks too. Sony ONLY MAKES $10 from each game purchase. There are only 70 million PS3s world wide. This ain't a billion dollar business. That should be apparent.

LEST WE FORGET: Sony IS a near-bankrupt company. LOOK AT THIS
LOOK AT IT

They lost more money last year than I could ever even DREAM OF HAVING IN MY ENTIRE LIFE. Sony is BLEEDING CASH. And only through massive rounds of layoffs and other austerity measures is Kaz managing to turn it around so they might break black this year. The video game industry is a much greater struggle than it seems you think.

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Thu Jun 20, 2013 7:50 am
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Thu Jun 20, 2013 4:05 pm
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