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People sepculating that the PS3 will be priced in the 299-340 range are dead wrong.


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54 replies to this topic

#1 Kastides

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Posted 01 July 2005 - 08:41 PM

Let's examine the situation from a financial POV.

The cost of one unit out the door comes to $500. This means if the PS3 is priced at 299 they will be losing $200 per unit sold. Say Sony sells 30 Million units during the launch period. 30M*$200= DEEP ASS IN RED for a already financially troubled company. There is no way that Sony could afford to a take hit of more than a $100 a unit. Even a $100 a unit loss is pushing it for this cheapass company.

I trust the economic side of science over the leak sources and rumors.

Take it to the Bank people I am right.

#2 AngellicLulu

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Posted 01 July 2005 - 08:44 PM

This belongs in the Sony Gaming forum not off-topic.

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#3 mtxbass1

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Posted 01 July 2005 - 08:48 PM

They always say, "He who sepculates, masterbates."



#4 Gothic Walrus

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Posted 01 July 2005 - 08:48 PM

Let's examine the situation from a financial POV.

The cost of one unit out the door comes to $500. This means if the PS3 is priced at 299 they will be losing $200 per unit sold. Say Sony sells 30 Million units during the launch period. 30M*$200= DEEP ASS IN RED for a already financially troubled company. There is no way that Sony could afford to a take hit of more than a $100 a unit. Even a $100 a unit loss is pushing it for this cheapass company.

I trust the economic side of science over the leak sources and rumors.

Take it to the Bank people I am right.


1.) This should definitely, definitely NOT be in this forum.

As a CAG, your cheapness probably spreads to other facets of your life, beyond video games.
Talk about ways you save money or anything else you wish, as long as its NOT GAMING RELATED.



2.) Microsoft was reportedly taking a loss of $125 per Xbox sold. Sony doesn't have the same resources, but it has been done before.

3.) I've never seen this figure of $500 for the production of one PS3 before. Where did this come from?

4.) If the system launches for that much money, it's not going to sell well. At all. This too has happened before - look at the home version of the Neo-Geo.

In all honesty, I don't think you know what you're talking about.

ah, a voice of logic in the form of a walrus


#5 Cracka

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Posted 01 July 2005 - 08:48 PM

Burn!

#6 Kastides

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Posted 01 July 2005 - 08:55 PM

1. I could provide you the links from reputable finanicial companies such as Merrill Lynch but i really dont feel like it.

2. Sony is in 60 BILLION In Debt... Thank their PC division

3. MSoft is RICH beyond belief.

4. I only spit the truth.

#7 mtxbass1

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Posted 01 July 2005 - 08:56 PM

Here OP, I'll save you the trouble.

http://www.cheapassg...ead.php?t=57345

This topic has been discussed previously to death.



#8 AngellicLulu

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Posted 01 July 2005 - 08:58 PM

4. I only spit the truth.

You are biased, Mr. Truthbearer. You're thread in the XBox forum shows that.

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#9 Moxio

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Posted 01 July 2005 - 08:58 PM

Ugh these facts hurt my brain. :cry:

#10 maxflight

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Posted 01 July 2005 - 08:59 PM

but what if sony was purposely giving out a bloated cost? or what if the cost of production drops 6 months later?

#11 Kastides

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Posted 01 July 2005 - 08:59 PM

Thank you.. i didnt realize someone had already posted this..

All the apporiate links are in there.

#12 Mr. Anderson

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Posted 01 July 2005 - 09:01 PM

Ugh these facts hurt my brain. :cry:


I like to take the numbers in small doses, preferably from epobirs.

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#13 praystation

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Posted 25 July 2005 - 07:03 AM

60 billion in debt? Where did u get that number? Show your source pleaseee
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#14 Deadpool

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Posted 25 July 2005 - 07:11 AM

60 billion in debt? Where did u get that number? Show your source pleaseee


He can't, because he pulled that out of his ass.

No company would be still around with even a 1 Billion debt ratio let alone 60 Billion! The guy is one of the bigger morons iv'e come across..
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#15 Dr Mario Kart

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Posted 25 July 2005 - 07:18 AM

Google the following: Sony Debt 6.71

#16 Drocket

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Posted 25 July 2005 - 07:28 AM

No company would be still around with even a 1 Billion debt ratio let alone 60 Billion! The guy is one of the bigger morons iv'e come across..

Sorry, but you're wrong. Sony is a big company, more than big enough to have billions in debt. Sony was, up until quite recently, over $60 billion in debt. In order to try to reorganize things and turn the situation around, they split off some of their divisions, so now the 'main' Sony has about $7 billion in debt (the other divisions took on most of the debt.)

If you don't believe this, here's Sony's financial statements.

#17 R1V3R5

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Posted 25 July 2005 - 07:29 AM

Sony's total debt stood at 6.71 trillion yen ($61 billion) on June 30. That figure includes MGM's debt of $1.9 billion, a debt that Sony aquired when they purchased MGM.

http://quote.bloombe...zAs0&refer=asia
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#18 Dr Mario Kart

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Posted 25 July 2005 - 07:42 AM

and another thing. I didnt realize people were speculating that it would be as low as 299-349. I really thought the bidding started at 399.

#19 Diiz

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Posted 25 July 2005 - 07:43 AM

Ugh these facts hurt my brain. :cry:



Funny, I saw very few facts... just a bunch of stipulation and pointless bickering between wannabe executives.
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#20 R1V3R5

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Posted 25 July 2005 - 07:45 AM

and another thing. I didnt realize people were speculating that it would be as low as 299-349. I really thought the bidding started at 399.



The Saturn was originally $399 and I think it would have sold well if it had as much hype as the PS3 does. I think they can and will sell the PS3 for $399. Count me out though as I have classes to pay for.
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#21 Sk

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Posted 25 July 2005 - 08:50 AM

Sorry, but you're wrong. Sony is a big company, more than big enough to have billions in debt. Sony was, up until quite recently, over $60 billion in debt. In order to try to reorganize things and turn the situation around, they split off some of their divisions, so now the 'main' Sony has about $7 billion in debt (the other divisions took on most of the debt.)

If you don't believe this, here's Sony's financial statements.

'
You still have a false sense of logic (to a certain degree, but I can see your point). Sony still owns and operates all its other branches and divisions. Therefore the company as a whole is still accountable for its dept (that I'm sure is well over the 7 billion dollar range). Its somewhat of a sugarcoat to say that the "main" sony is only 7 billion in debt, when the company as a whole is still in the red. People act as if 7 billion is a small amount of debt to have (thats more then what Bill Gates is worth). Thats enough to crush a lot of companies (but none on par with sony, hell sears is still around and thats been in the red for the better part of a decade). If sony continuously operates under those conditions they could go under, or be forced to merge with another company. Also sony does have well over 7 billion dollars in assets (they have like 69 billion dollars worth of assets), if need be they could always sell some off to get out of the red. At the end of the day sony is most likely here to stay, I could only see them shaking in their boots if their debt reached the 100 billion range (if that happened I could also see them getting government assistance) .

#22 praystation

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Posted 25 July 2005 - 10:43 AM

I bought 3d0 for $550 with video module
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#23 Sk

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Posted 25 July 2005 - 06:46 PM

4.) If the system launches for that much money, it's not going to sell well. At all. This too has happened before - look at the home version of the Neo-Geo.

In all honesty, I don't think you know what you're talking about.

You forgot to add in the fact that the Neo-Geo's games costed in the several hundred dollars to buy. They were damn pricey thats what killed it.

#24 Drocket

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Posted 25 July 2005 - 10:13 PM

'You still have a false sense of logic (to a certain degree, but I can see your point). Sony still owns and operates all its other branches and divisions. Therefore the company as a whole is still accountable for its dept (that I'm sure is well over the 7 billion dollar range). Its somewhat of a sugarcoat to say that the "main" sony is only 7 billion in debt, when the company as a whole is still in the red.

This is a pretty complicated subject, deliberately so because Sony wants to hide as many of its problems as it can. Its not completely true that Sony is responsible for the entire debt, but at the same time its not completely true that Sony ISN'T respsonsible for the entire debt. Its sort of in the netherworld in between those two extremes, and where exactly in between will only be decided after many, many years of litigation if/when one of Sony's divisions goes belly-up. Most likely the remaining branches of Sony would wind up having to only partially repay the debt of the bancrupt branch, which is a good portion of the reason that they split themselves up. Corporate financing, how fun you are...

People act as if 7 billion is a small amount of debt to have (thats more then what Bill Gates is worth). Thats enough to crush a lot of companies (but none on par with sony, hell sears is still around and thats been in the red for the better part of a decade). If sony continuously operates under those conditions they could go under, or be forced to merge with another company. Also sony does have well over 7 billion dollars in assets (they have like 69 billion dollars worth of assets), if need be they could always sell some off to get out of the red. At the end of the day sony is most likely here to stay, I could only see them shaking in their boots if their debt reached the 100 billion range (if that happened I could also see them getting government assistance) .

$7B is a lot of money, but considering the size of Sony, not back-breaking. Virtually all companies carry some debt (Microsoft being the big exception.) Ultimately, there's 2 factors that are all that matters in terms of whether Sony goes belly-up or not: 1), whether the debt is large than their assets (currently not true), and 2) whether they can still make a profit.

#25 Sk

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Posted 25 July 2005 - 10:17 PM

^I brought up many of your points in my post. I do agree with you to a certain degree (I also never said you were 100% wrong). And yes you are right corporate financing is crazy.

#26 dmpolska

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Posted 26 July 2005 - 05:27 AM

1. I could provide you the links from reputable finanicial companies such as Merrill Lynch but i really dont feel like it.

2. Sony is in 60 BILLION In Debt... Thank their PC division

3. MSoft is RICH beyond belief.

4. I only spit the truth.




Sony... in debt...? I don't believe it.

#27 dmpolska

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Posted 26 July 2005 - 05:33 AM

After doing some research......

"March '04 is $64 Billion, but their total assets as a company is valued at $87 Billion."

So it really doesn't matter.

#28 Kastides

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Posted 26 July 2005 - 05:34 AM

This thread still lives on even after people were accusing me of spreading false rumors... ??? Thanks people.

I aim to inform.
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#29 zionoverfire

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Posted 26 July 2005 - 05:36 AM

This thread still lives on even after people were accusing me of spreading false rumors... ??? Thanks people.

I aim to inform.


Informers typically post links and cite sources.;)

#30 Deadpool

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Posted 26 July 2005 - 06:44 AM

After doing some research......

"March '04 is $64 Billion, but their total assets as a company is valued at $87 Billion."

So it really doesn't matter.


Which is EXACTLY why they are not in debt.
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