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Re: Sony Defends Cost of the Linux-Powered Playstation

__/ [ Larry Qualig ] on Monday 26 June 2006 19:20 \__

> The Ghost In The Machine wrote:
>> In comp.os.linux.advocacy, billwg
>> <billw@xxxxxxxxxxx>
>>  wrote
>> on Mon, 26 Jun 2006 13:01:50 GMT
>> <2VQng.35203$7G2.22249@xxxxxxxxxxxxxxxxxxxxxxx>:
>> >
>> > "Roy Schestowitz" <newsgroups@xxxxxxxxxxxxxxx> wrote in message
>> > news:4382329.WQUvMvOrMv@xxxxxxxxxxxxxxxxxx
>> >> ,----[ Quote ]
>> >> | "The price of the PS3 is high ... but you're paying for (its)
>> >> | potential... Obviously, it's a higher-risk strategy as all new
>> >> inventions
>> >> | are but if the PS3 lives up to its total potential, then I don't
>> >> think
>> >> | anyone will be worried about Nintendo or Xbox's cheaper price," the
>> >> | Welsh-born executive said.
>> >> `----
>> >>
>> >> It seems evident that they will extend the PlayStation 3 to have the
>> >> functionality of a (Linux) PC.
>> >>
>> >> In yesterday's news:
>> >>
>> >>        Sony Expects to Sell 100 Million PS3s
>> >>
>> >>        http://gamepro.com/news.cfm?article_id=68990
>> >
>> > Ox demurs:
>> >
>> > "Posted at: 06/23/06 at 18:09 PM PST
>> >
>> > If the PS3 will only be live and kicking for the average console life
>> > cycle of six years, I say no chance in hell, even if it froze over.
>> > People are not willing to pay $600 for a console and when the price
>> > drops to like $300, it'll be a little too late IMO. Sony has lost this
>> > generation."
>> >
>>
>> Hm.  So Microsoft is planning to make up for the XBox's
>> losses with volume, then?
>>
>> Or is the XBox720 going to be twice as much so that Microsoft
>> can recoup?
> 
> 
> Sony will also be selling the PS3 at a loss. It's simply the nature of
> the gaming console industry. Selling at a loss isn't unique to gaming
> consoles... Gilette sells its razors at a loss but makes up for this
> when it sells the razor blades. Many ink-jet printers are sold at a
> loss (look at the insanely low prices) but the money is made up selling
> the cartridges. I believe the original Tivo was also sold at a loss but
> selling the service/subscription made up the difference.

Difference is: Microsoft is not much of a _game maker_. They can try to sell
subscription to various XBox services, but whether it can compensate for the
losses (which exceed expectations) we are yet to find out...

Best wishes,

Roy

-- 
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