189 posts in this topic

Posted

Any prices right now will simply be place holder.

Even with 8GB of GDDR5, and the apparently bundled PSEye, we'll be shooting for ~ $425.

The cost to manufacture will be cheaper by the years end, so it's obvious why pricing strategy is one of the last elements to announce.

Doesn't work like that. they have to reserver and order parts for months of production already now. what prices for components and labor is in the future will have no relation to this. the cost of the device will be based on price of components they buy in huge bulk order today. actually they probably ordered them months ago.

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Posted

Doesn't work like that. they have to reserver and order parts for months of production already now. what prices for components and labor is in the future will have no relation to this. the cost of the device will be based on price of components they buy in huge bulk order today. actually they probably ordered them months ago.

HawkMan we're 8 months or more away, Google make and ship the Nexus 4 phones on a weekly basis. The Nexus 4 I received was only made a few weeks before I got it.

They are not buying all the parts 'today' in bulk.

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Posted

actually they are. this is not even comparable to any of the nexus products. But even they are ordered and planned long in advanced. If sony even wants to make these devices before launch, they need to order parts now or there won't be any by the time production time rolls about and if they don't order time at the factories now, all those slots are full by the time the production time comes about.

I've worked in a big electronics factory and my GF works there now. prices for things like these are contracted on a year by year basis. Usually because the orderers wants to since they can get much cheaper deals that way. Even when you own the factories yourself, you can't just have them stand idly by and wait for something to do.

all of this is contracted and pre planned and ordered long in advanced. the most you can change is that you have a weekly adjustment to the orders, but in this case that won't apply as the factories will be running on max and as many as they can make for at least the first year anyway.

Sony doesn't go to AMD and say , we need 50k PS4 APU's next month. that's not how it works in this kind of production. And besides that production prices actually tend to go up because labor costs go up. it only goes down when parts become common. which again isn't the case here, these are special made APU's for Sony, they are the only ones getting and ordering them. The price for them is pretty much solely decided by the bulk sizes of the orders sony makes. meaning for Sony it only makes sense to make orders as big as possible. They know they will fill up the first years order in any case, so they bulk order the full one year production of the APU's in one order. that pushes the price as low as it can be. And it doesn't mean that AMD delivers a whole one years supply of Jaguar APU's in one truck, it just means that Sony has bought that alloted supply from them and AMD wil deliver them on the agreed upon schedule.

Basically they just say "For the year 2013, wie will order a minimum of x amount of PS4 APU's every month, to be delivered weekly, and paid on delivery. for the unit price of x"

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Posted

actually they are. this is not even comparable to any of the nexus products. But even they are ordered and planned long in advanced. If sony even wants to make these devices before launch, they need to order parts now or there won't be any by the time production time rolls about and if they don't order time at the factories now, all those slots are full by the time the production time comes about.

I've worked in a big electronics factory and my GF works there now. prices for things like these are contracted on a year by year basis. Usually because the orderers wants to since they can get much cheaper deals that way. Even when you own the factories yourself, you can't just have them stand idly by and wait for something to do.

all of this is contracted and pre planned and ordered long in advanced. the most you can change is that you have a weekly adjustment to the orders, but in this case that won't apply as the factories will be running on max and as many as they can make for at least the first year anyway.

Sony doesn't go to AMD and say , we need 50k PS4 APU's next month. that's not how it works in this kind of production. And besides that production prices actually tend to go up because labor costs go up. it only goes down when parts become common. which again isn't the case here, these are special made APU's for Sony, they are the only ones getting and ordering them. The price for them is pretty much solely decided by the bulk sizes of the orders sony makes. meaning for Sony it only makes sense to make orders as big as possible. They know they will fill up the first years order in any case, so they bulk order the full one year production of the APU's in one order. that pushes the price as low as it can be. And it doesn't mean that AMD delivers a whole one years supply of Jaguar APU's in one truck, it just means that Sony has bought that alloted supply from them and AMD wil deliver them on the agreed upon schedule.

Basically they just say "For the year 2013, wie will order a minimum of x amount of PS4 APU's every month, to be delivered weekly, and paid on delivery. for the unit price of x"

I believe you do know what you're talking about with how these orders are made, but I still genuinely think full speed production is NOT happening right now. Maybe by the summer, 3~4 months before release. Not 8 months when the actual design of the PS4 shell might not be finalized.

The leaks of the PS3 slim shell from Taiwan happened about a month before release.

Pricing strategy for a console is one of the last things to be announced, it's the same for any product really. Besides production and parts, the economy, the competition and other worldwide/political events can dictate your price right up to near release.

Sony will have ballpark figures, but I'm still quite surprised at the journalists believing a price for a product would be announced 8 months before release. Quite stupid really, these people are suppose to know how marketing and business works.

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Posted

I hope Sony can be guaranteed a lot of gddr5 memory. I can see ps4's being scarce due to gddr5 supply issues.

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Posted

I believe you do know what you're talking about with how these orders are made, but I still genuinely think full speed production is NOT happening right now. Maybe by the summer, 3~4 months before release. Not 8 months when the actual design of the PS4 shell might not be finalized.

Of course they're not makign anything yet. But they still need to make the orders for the components long in advance.

When Sony starts production in July, It's a little late to call AMD and order CPU's and Samsung to order Memory, they will just reply "sorry but all our production lines or take by MS" :p

These are orders that go over very large quantities over very long periods. for everyone involved large bulk orders is better, that's why the factories are willing to go lower in price on them, and why Sony wants them because it offers stability and of course lower prices.

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Posted

The main problem with prices is the ones Sony can control themselves or have no control over.

basically final assembly there they have somewhat more control depending on how and where it's done. there the price often goes down as the first production runs is often done manually in cheap Asian labor factories as the factory itself finishes production on the actual automated line. This is why Asian factories win most contracts, their labor costs are low enough that they can offer much faster production start up since they can hire a thousand idiots for menial assembly labor to immediately start up production while the line takes 2 months to set up and make sure it works properly. we lost a contract that way.

Shipping is another big one which is also a major contributor to the varying costs around the globe along with the various MVA's and local warranty rules. the 1 year minimum warranty and 5 year factory warranty in Norway sure ads into the cost of a product in Norway, or rather eats into the profits, especially on a brand new product like this who has high above average faults.

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Posted

NSFW but Pretty funny...

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Posted

are we already starting with the wars again? GOOOD, makes me feel young, like it's 2006 all over! keep it up boys!

but seriously, both PS4 and new Xbox will kick ass, looking forward to it. the presentation was good. some of the stuff was a little goofy but overall very good. Having Cerny up front was a huge plus, the guy is a legend. I even like the new DualShock, that touchpad could prove useful. And i simply can't wait for KZ4, it looks amazing - i'm a sucker for FPS's what can i say.

if you're not excited about any of this fine, that's your prerogative, but you're probably in the wrong part of the forums!

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Posted

So now that MS have their pre-E3 conference, it would be a good time to go back and rewatch Sonys

The massive difference being Sonys focus on gaming, gamers and without a doubt INDIE developers. MS didn't mention the Indies once....

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Posted

iTxQ7Y4ExeNe1.gif

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Posted

Both from NaughtyDog...

Hmont9k.jpg

tatQm24.jpg

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Posted

Hmont9k.jpg

Isn't that basically what MS is doing with Smartglass?

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Posted

Both from NaughtyDog...

Occulus Rift

I've had ago at some Unreal 3 games with the Occulus Rift and university and it's amazing!.

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