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Customer Discussions > Video Games forum

Vita gets a price cut!


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Showing 1-25 of 39 posts in this discussion
In reply to an earlier post on Nov 16, 2012 5:16:35 PM PST
Last edited by the author on Nov 16, 2012 5:17:26 PM PST
Facelord says:
The Metal Gear Solid HD Collection on the Vita outsold MGS3D on the 3DS by a massive margin and cost quite a bit less to produce since the system's more powerful and has better devtools. Third-party game sales on the 3DS are abysmal, and third-party game sales on the Vita are great considering the small install base. Pretty much anything that isn't Mario or Pokemon isn't going to be purchased by the average 3DS gamer, the numbers prove it. It's not as simple as "there are more customers on the 3DS!"

Update: geez, four posts in a row. I wish I could somehow respond to four comments without bumping this thread four times, that's not cool.

In reply to an earlier post on Nov 16, 2012 5:13:42 PM PST
Facelord says:
Heh, to be fair it was just one developer who jumped onto Resistance AND CoD and Activision had those guys make Declassified in 4-6 months anyways.
Also, Sony doesn't get a pass for the memory cards. That's the number one complaint of the Vita, and rightly so.

In reply to an earlier post on Nov 16, 2012 5:11:31 PM PST
Facelord says:
Exactly! Even if they lose $20 off each Vita sale they'd make that money right back in game sales. I think they're afraid of backlash, they should man up and do what Nintendo did- just drop the freaking price. $180 would steal so many 3DS sales and win over so many Vita gamers, much moreso than $200 plus a free $40 game. It's psychological, yaknow.

I almost think they're working on a revision model for the Vita, DS Lite-style. The Vita's processor could definitely be shrunk to a smaller die process for better energy efficiency, meaning it'd require a smaller battery to get slightly better battery life and they'd be able to slim the system down simultaneously. They'd have to make sure CPU yields would be on par with or superior to the current Vita model, though, and I'm sure it'd be costly anyways to do that. Eh, it's gonna happen inevitably, right now Sony just needs to focus on dropping the Vita's price to $180.

In reply to an earlier post on Nov 16, 2012 5:06:33 PM PST
Facelord says:
Hardware does matter, it's what they're selling you. I can't believe people are stupid enough to make claims like this, if hardware doesn't matter to Nintendo they don't have the right to be in the hardware market. Ask more of them and they'll give it, stop coddling them. Their coddling fanbase is the reason they are the way they are right now.

In reply to an earlier post on Nov 16, 2012 9:40:38 AM PST
But the markups were close.

$101~$249= $148

$159~$299= $140 plus revenues from selling expensive, proprietary cards.

In reply to an earlier post on Nov 16, 2012 9:39:58 AM PST
fine, keep your business analysis to yourself, it's not like I'm paying for the service

In reply to an earlier post on Nov 16, 2012 9:38:12 AM PST
Flores. says:
Bot

In reply to an earlier post on Nov 16, 2012 9:37:18 AM PST
Is this price cut a good move flores, we need some analysis from Sonymite #1

In reply to an earlier post on Nov 16, 2012 9:35:06 AM PST
Flores. says:
$159>$101

In reply to an earlier post on Nov 15, 2012 11:31:16 PM PST
Nintendo had those same costs.

In reply to an earlier post on Nov 15, 2012 11:30:29 PM PST
Nintendo doesn't make any money from overpriced, proprietary memory cards.

Posted on Nov 15, 2012 11:25:40 PM PST
jnjmcc says:
Hmm should I make games for a system that has 22 million users world wide or 3 million. That's a tough one

In reply to an earlier post on Nov 15, 2012 11:07:36 PM PST
Dukeshire says:
Even though I have a Vita, there is no excuse for poor marketing and the use of crappy developers for popular IP's such as Resistance and CoD. Those games should be making the system a must have. Instead the ball is dropped. If MS required proprietary memory for a handheld, the Internet would go ape-feces. MS gets crap for the hard-drive, rightfully so, and Sony should not get a pass for the crap they are pulling and the crap games that they release, which should be AAA titles.

In reply to an earlier post on Nov 15, 2012 10:59:37 PM PST
Last edited by the author on Nov 15, 2012 11:01:47 PM PST
Modern Bear says:
He is figuring R&D costs, which really shouldn't be figured in because that's part of doing business. If you don't R&D, you don't come out with new products. With no new products you're really not in business anymore.

There is a definite difference in business attitude between Nintendo and Sony. Nintendo understands that it is vital to sell as many units as possible to make money in the long term, for the reasons I keep stating but keep being ignored by Flores. Sony's attitude is they want as much profit as possible per unit and don't seem to think about how that may hurt sales. The memory card situation is a perfect illustration of that because the markup on those is ridiculous. That is price gouging plain and simple, since the thing is required to make the Vita useful.

This is why Nintendo has been in the video game business for so long, and has dominated the handheld market in particular since the original Gameboy. They understand the market and their customers. I'm not sure what Sony understands in recent years except for how to excel at being stubborn. I do hope they come to their senses next year though because I want to see them succeed. They have incredible engineers who design some of the best electronics on the market. It's too bad their business decisions have been so dimwitted in recent years.

Posted on Nov 15, 2012 10:50:56 PM PST
Dukeshire says:
I am not good at math: The Vita costs 150 to produce, R and D is a sunk cost etc, so it really has no bearing after the device is released. Also, parts get cheaper over time....Also, you have to purchase a memory card that is jacked up in price by untold amounts, so how again is Sony selling the Vita at a loss like Flores claimed?

In reply to an earlier post on Nov 15, 2012 10:48:07 PM PST
Modern Bear says:
You are ignoring the point I made about how software is where the real money is. It's very simple. If Sony persists on this attitude about pricing on the Vita, it's never going to be a success. Developers aren't going to want to waste money developing for a system that is not in the hands of very many gamers because their potential sales will be too low to justify development costs. If there continue to be a lack of games available for the Vita, sales will never pick up. It's a vicious circle that can only be broken by taking some initiative and doing a decent price cut in order to make the Vita attractive to more customers, even if it means taking a temporary loss per unit. The increased licensing and software sales will make up for that loss.

In reply to an earlier post on Nov 15, 2012 10:44:45 PM PST
Last edited by the author on Nov 15, 2012 10:45:57 PM PST
Flores. says:
Here's the article you possibly pulled those numbers from:

http://www.lazygamer.net/general-news/how-much-does-the-playstation-vita-cost-to-make/

And they support my comments:

>>That cost doesn't include the R&D, software development, shipping or marketing and advertising - so it's unlikely Sony's making huge profits off the thing, if any at all. In all likelihood, they're still making a loss<<
-----------------
>>not much different than the launch 3DS cost.<<

According to Eurogamer, the difference is quite big:

http://www.eurogamer.net/articles/2012-01-20-is-the-playstation-vita-worth-230

Materials for Vita: $159
Materials for 3DS: $101

MSRP at launch for both was $250.00

In reply to an earlier post on Nov 15, 2012 10:42:50 PM PST
Modern Bear says:
Good point. Nintendo had a lot of R&D, advertising, and distribution costs too. They also suffered from bad sales at first because the 3DS was overpriced for what the market is willing to pay for a handheld gaming device. They adapted and did so quickly. It served them well to do so. I'm not sure why Sony refuses do the same.

It's looking like inability or unwillingness to adapt is a company wide problem at Sony as their finances have been showing in recent years. It seem like an attitude of "we do things our way because that's the way things are done at Sony, and the hell with the consequences."

In reply to an earlier post on Nov 15, 2012 10:39:59 PM PST
Dukeshire says:
So essentially Sony is not very intelligent to be selling something at a loss. That is there problem....So then they tack on obscenely overpriced memory cards that gouge customers in order to make up the difference. Amazon pretty much sells the Kindle Fire at a loss but they hook you into purchasing their products such as books and movies and music and games etc.....Sony needs to do a better job, get more games for Vita and more downloadable content. Get people to want to purchase a Vita and that is how you can make up for that loss. As of right now Sony is not very intelligent nor very competent.

In reply to an earlier post on Nov 15, 2012 10:36:21 PM PST
Last edited by the author on Nov 15, 2012 10:36:40 PM PST
Flores. says:
Before Nintendo did the price cut, they were making a killing with every 3DS sold. Even now, they're selling it at a slim profit.
Sony is losing money with every Vita sold even BEFORE a hypotetical price cut.

Big difference.

In reply to an earlier post on Nov 15, 2012 10:34:27 PM PST
Nintendo had to do the same with the 3DS. I'm not seeing the huge difference here.

In reply to an earlier post on Nov 15, 2012 10:30:43 PM PST
Last edited by the author on Nov 15, 2012 10:31:24 PM PST
Flores. says:
if only the cost of making electronics was only comprised of "parts"
Screw the R&D people, advertising, logistics, and so on so forth.
All that stuff is free, anyway. /sarcasm

In reply to an earlier post on Nov 15, 2012 10:28:12 PM PST
Last edited by the author on Nov 15, 2012 10:29:55 PM PST
Modern Bear says:
It's not really. Sales are more important. You need the unit in as many hands as possible so you can sell more software, and thus get more money from licensing, get more developers on board to make more games, and thus sell even more units because there are more games to lure customers in. The real money in gaming is in the software, not the hardware. If you need to take a loss on the hardware to get more from software, it's worth it.

It's a pretty bad situation for Sony. The Vita has been out for 11 months and it's only sold around 3 million units. The 3DS has been out for 21 months and it's sold 22 million units. That's a rate per month that's nearly quadruple the Vita, plus they make way more from all the game sales. If Sony persists in being stubborn about this it's only going to hurt them.

In reply to an earlier post on Nov 15, 2012 10:27:37 PM PST
The 3G Vita is said to cost $159.10 in parts. That's about a $140 markup, not much different than the launch 3DS cost.

In reply to an earlier post on Nov 15, 2012 10:22:01 PM PST
Last edited by the author on Nov 15, 2012 10:26:53 PM PST
Flores. says:
It was an easier decision for Nintendo because they had a huge markup from cost with the 3DS.
Sony is selling the Vita at a loss, or breaking even at best.

Quite different scenarios.
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Discussion in:  Video Games forum
Participants:  13
Total posts:  39
Initial post:  Nov 15, 2012
Latest post:  Nov 16, 2012

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