As we know, the PlayStation 4 is selling extraordinarily well – but things are even more positive for Sony behind closed doors. Last year, the platform holder noted that it had designed its next-gen device to be much more price competitive than the PlayStation 3, and it sounds like it’s feeling the fruits of that labour right now. Indeed, according to the firm’s latest financial report, it’s already managed to cut the manufacturing costs associated with the machine.
“Sales are expected to be higher than the May forecast primarily due to the strong performance of the PS4,” it wrote as part of its official documentation. “Operating income is expected to be higher than the May forecast primarily due to PS4 hardware cost reductions.” This means that it’s able to make more money off each system sold, which is unprecedented this early in the generation.
Historically, the Japanese giant has always sold its hardware at a loss initially, with the business model seeing it make back any money later in the generation. This time around, though, it has its eyes on the dollar sign, with its projected operating income for the fiscal year boosted to ¥25 billion ($243 million) on the back of this development.
Given that it’s increasing its forecast, we’re going to assume that a price cut isn’t on the cards just yet, but the good news is that the manufacturer already has the leg room to react the moment that sales start to take a dip. This is the exact opposite of the situation that it found itself in with the PlayStation 3, where it needed to drop the price but couldn’t really afford to.
If sales continue the way that they are – and Microsoft sticks to its guns, too – we doubt that you’ll see the organisation lower that $399.99 price point until at least next Christmas. However, what it may do to stay competitive is start offering some even more attractive bundles – or perhaps even start packaging in the PlayStation Camera for free.
[source sony.net, via videogamer.com]
Comments 10
I can't see a price cut happening just yet, I think the start point was correct for Sony so they do not need to drop the hardware price. Maybe bundle in a free game here and there though.
No need
I could see it getting a price cut - but only in japan. 4 or 5 weeks now behind Wii U, they must be embarrassed. And Im not sure what japan is even getting that will move the system this year, Wii U actually has a couple of games lined up.
The West wont see a cut for quite awhile, we'll see a 1TB HDD before that. If the PS4 PS+ ever starts getting retail games it will need the space.
This momentum is great and we are going to be seeing more attention and better services because of this. Coming this early October, the new super servers are going to be turned on. We are going to really see Sony invest into tech for its PS4 and spring / summer we'll get price drop and morph at E3.
No, and it doesn't need one. I think it has a "sweet spot" price. Maybe holiday season 2015.
A diligent online shopper can already purchase the PS4 for $350 or $360 on deals or bundles priced similarly now and then. It'll be interesting to see if the Wii U Deluxe console gets its price cut to $250 before that. I think the $250 price point really helped the original Wii sell well. It was right at that "I'm at Best Buy and here's a Wii in stock I'm gonna buy it and check it out with the kids" splurge price. Game systems are cheaper than ever and the PS4 is still selling the best in the regions that really count toward overall sales; I'm sure that and the extra $$$ is more than enough to keep the price the same for a while.
I'm hoping that the PS4's price will permadrop down to $300 New by Christmas 2016 or earlier, and it'd be nice if it had more HDD space by then as well.
(1 or 2 TB HDD anyone? )
I'm more interested in a model two with 1TB + storage.
I will not buy one until they upgrade the hard drive. A price drop would obviously be a plus, as well.
Seriously why on earth do ppl expect keep expecting a price drop so soon... the. Machine hasn't even been out for a year! Not to mention normally price drops on new hardware dobt happen after the first 2 to 3 years especially those that are successful! 400b is a damn fair enough price! Ppl if u want this s I per console save ur cash!
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