Console Costs

Discussion in 'Games' started by clayj, Nov 16, 2006.

  1. clayj macrumors 604

    clayj

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    visiting from downstream
    #1
    Wow:

    Sony needs to get their attach rate up or this loss per console is absolutely going to kill them.
     
  2. MRU macrumors demi-god

    MRU

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    Aug 23, 2005
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    Ireland
    #2
    eeeeek :eek: :(

    with a 0.8 ratio in Japan they have to be praying the US goes for the games in a major way...
     
  3. Krevnik macrumors 68030

    Krevnik

    Joined:
    Sep 8, 2003
    #3
    Most definitely, but I am not sure iSuppli is the best source for information on how much a company loses/makes on a console, since they are comparing to the retail price. Sony is losing more than 250$ on the console because the wholesale price to distributors determines their losses, not retail price. MS also hasn't gotten costs down quite as quickly as one would hope or believe. Does iSuppli actually know the pricing MS is getting on chips has actually dropped, when the chips aren't available in the wholesale market? They are making guesses, nothing more.
     
  4. WildCowboy Administrator/Editor

    WildCowboy

    Staff Member

    Joined:
    Jan 20, 2005
    #4
    Sorry...haven't been following discussions on this in other threads here, but I assume the attach rate is so low because so many of the initial purchasers are just looking to resell it for a huge profit. Isn't this pretty typical for launches?
     
  5. clayj thread starter macrumors 604

    clayj

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    #5
    Well, when the 360 came out, you pretty much didn't have a choice; every retailer required you to buy at least 3 games in an Xbox 360 bundle. I don't know if that requirement exists here in the US for the PS3; I do know that it doesn't apply in Japan.
     
  6. Abulia macrumors 68000

    Abulia

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    Jun 22, 2004
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    #6
    The 360 attach rate at launch was between 3 and 4.
     
  7. clayj thread starter macrumors 604

    clayj

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    #7
    Not to mention, you pretty much couldn't even buy an Xbox 360 without getting an extra controller, a play-and-charge kit, and other accessories which drove the attach rate (or effect of it) up even higher.

    PS3 buyers: What extras were you required to buy, if any, when you picked up your PS3? In Japan, the answer is apparently "none".
     
  8. dylangurl21 macrumors regular

    Joined:
    Sep 16, 2005
    #8
    the biggest loses these companies face is research costs. It will be a little while before the profits on these machines/games/accessories will pay off the immense time and energy spent designing them.
     
  9. pionata macrumors 6502

    Joined:
    Oct 12, 2005
    Location:
    Montreal
    #9
    yeah, thats probably why they are shipping them very sloooooooowly.
     

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