@asylumni said:
@AdobeArtist said:
You're joking, right? It's BECAUSE Playstation dominated in it's first two generations that we saw the arrogance of Sony with the release of PS3. It may not have been $1000 but $600 was still damn steep, and a hard sell for many gamers with lower priced products readily available. But Sony was so confident in the "unquestionable consumer loyalty" in the PS brand, they defended that price with statements like, "people will work extra jobs to buy our system", even going so far as to claim, "PS3 will sell even without games" And let's not forget the slow title release in the first 3 - 3.5 years of the PS3 life span.
You know, you don't have to respond to ridiculousness with more ridiculousness. Sony never stated, "people will work extra jobs to buy our system". And while there was a $600 model, there was also a $500 one. This also ignores the fact that it cost Sony nearly $900 just to manufacture that console they were selling for $600 - really not an act of a corporation taking advantage of its customers.
https://kotaku.com/5985243/thanks-for-all-the-memes-ps3
https://gizmodo.com/111266/ps3-to-be-really-spensive
http://www.gamesradar.com/our-10-favorite-ken-kutaragi-quotes/
https://www.engadget.com/2005/07/06/sony-wants-you-to-earn-that-playstation-3/
Yeah. I did not make that up, it's actually something Ken Kuturagi said. I paraphrased before, but here's the original quote;
"We want consumers to think to themselves 'I will work more hours to buy one.' We want people to feel that they want it, irrespective of anything else."
Sony was drilling the idea that PS3 was going to be so wanted (maybe even needed) by everybody regardless of price, they'd work as many hours as they had to just for this one device alone.
And we all knew that PS3 was originally more expensive to manufacture than it's launch price. That's pretty much how it is for most (if not all) new tech put out on the market. That's the nature of new tech, components are more expensive in the beginning.
It's called a loss-leader, which is common practice. Companies sell hardware within an acceptable loss margin early on in the hopes of making their real source of revenue from the software. They gotta get the primary product into homes which can then bring in the replenishable form of revenue coming in, the software that is releasing at a regular rate. And how that comes in at higher mass quantities as each user can buy more games than hardware boxes, helps recover from this early loss. The same is seen when DVD players were new, pricey as they were, were still sold at a loss so people would bring in the real revenue from discs. same with Blu Ray players. Printers are another example; the machine itself is sold at a loss, so people keep filling up on ink cartridges.
Of course that's just in the early stages. as cost of components go down in time, along with manufacturer refinement processes and other cheaper materials being substituted, the production makes a turn around where each unit can be sold at a profit. It's always a long term strategy where expense and revenue balance out over the long haul. At least that's the aim in how the market is played.
So this is hardly anything philanthropic that Sony should be patted on the back for. It's just the nature of the business that's practiced by all tech manufacturers.
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