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PS4 gets dlc first?


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So you think that by last November, when they started selling  the XB for 349, they had already cut 42 dollars. I could believe that. But when you add in two Assassins Creed games, even at a quarter value, let's call it 20 bucks, they still lost 20*2.8 million or so. Throw in the 50 dollar target gift card, and that's 70 dollars lost on an unknown amount of consoles sold (BF deal). 

The BOM breakdown doesn't include shipping, warehousing, or any potential retailer cut. Let's be real, they didn't cut $111 dollars in costs in one year, without a die shrink.That's 25% of the consoles price. 

@mocking thank you. In actual units, the gap is tiny, in a % it's quite impressive. The gap would be smallest in the US, as that's where the consoles are closest. The preorders would say something entirely different  in the UK or Germany, where Sony has dominated. The US is a small market compared to the rest of the world. Individually it is the biggest market for consoles, but collectively, the rest of the world has outsold the US by almost double on the Sony side. That is where BO3 preorders will favour Sony.

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So you think that by last November, when they started selling  the XB for 349, they had already cut 42 dollars. I could believe that. But when you add in two Assassins Creed games, even at a quarter value, let's call it 20 bucks, they still lost 20*2.8 million or so. Throw in the 50 dollar target gift card, and that's 70 dollars lost on an unknown amount of consoles sold (BF deal). 

The BOM breakdown doesn't include shipping, warehousing, or any potential retailer cut. Let's be real, they didn't cut $111 dollars in costs in one year, without a die shrink.That's 25% of the consoles price. 

@mocking thank you. In actual units, the gap is tiny, in a % it's quite impressive. The gap would be smallest in the US, as that's where the consoles are closest. The preorders would say something entirely different  in the UK or Germany, where Sony has dominated. The US is a small market compared to the rest of the world. Individually it is the biggest market for consoles, but collectively, the rest of the world has outsold the US by almost double on the Sony side. That is where BO3 preorders will favour Sony.

​if the console had originally been selling at $500 at a zero margin, then your point would be valid.  Microsoft didn't spend $500 on every xbox console they produced.  far from it.  honestly, they could probably sell the console for $50 and still make profit.  That is just a guess.  Anyway let's address your point.  A) assassins creed was not produced by microsoft.  MS would partner with Ubisoft for this, and ubisoft would likely get a kickback from console bundle sales.  Target also would likely be a marketing partnership.  neither of those things are cutting directly into MS's margins.  So what we have is demand declined slightly as the console is almost 2 years old now, so whoever is in charge of analyzing pricing/promos decided to drive more units and maximize profit, they would decrease the price to drive unit sales (which has worked like a charm by the way, xbox sales have out paced ps4 sales since the price decrease in december)

 

So yes, margins are lower now for xbox sales than they were when it was at the $500 price point, but they are FAR from losing money lol

 

also:

The US is a small market compared to the rest of the world

 

LMAOOOOOO!!!! :D:D:D

 

 

 

i get it thoughm you are a Playstation owner, its understandable that you would be very hopeful that you won't have to wait 30 days for new dlc, but don't let that hopefulness cloud facts

Edited by the_clay_bird
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So you think that by last November, when they started selling  the XB for 349, they had already cut 42 dollars. I could believe that. But when you add in two Assassins Creed games, even at a quarter value, let's call it 20 bucks, they still lost 20*2.8 million or so. Throw in the 50 dollar target gift card, and that's 70 dollars lost on an unknown amount of consoles sold (BF deal). 

The BOM breakdown doesn't include shipping, warehousing, or any potential retailer cut. Let's be real, they didn't cut $111 dollars in costs in one year, without a die shrink.That's 25% of the consoles price. 

@mocking thank you. In actual units, the gap is tiny, in a % it's quite impressive. The gap would be smallest in the US, as that's where the consoles are closest. The preorders would say something entirely different  in the UK or Germany, where Sony has dominated. The US is a small market compared to the rest of the world. Individually it is the biggest market for consoles, but collectively, the rest of the world has outsold the US by almost double on the Sony side. That is where BO3 preorders will favour Sony.

​if the console had originally been selling at $500 at a zero margin, then your point would be valid.  Microsoft didn't spend $500 on every xbox console they produced.  far from it.  honestly, they could probably sell the console for $50 and still make profit.  That is just a guess.  Anyway let's address your point.  A) assassins creed was not produced by microsoft.  MS would partner with Ubisoft for this, and ubisoft would likely get a kickback from console bundle sales.  Target also would likely be a marketing partnership.  neither of those things are cutting directly into MS's margins.  So what we have is demand declined slightly as the console is almost 2 years old now, so whoever is in charge of analyzing pricing/promos decided to drive more units and maximize profit, they would decrease the price to drive unit sales (which has worked like a charm by the way, xbox sales have out paced ps4 sales since the price decrease in december)

 

So yes, margins are lower now for xbox sales than they were when it was at the $500 price point, but they are FAR from losing money lol

 

also:

The US is a small market compared to the rest of the world

 

LMAOOOOOO!!!! :D:D:D

 

 

 

i get it thoughm you are a Playstation owner, its understandable that you would be very hopeful that you won't have to wait 30 days for new dlc, but don't let that hopefulness cloud facts

You must be an American *facepalm*

 

When 300 million are considered bigger than 6 billion, only in America... Stop being retarded for the sake of it.

Edit: Why is the quoting like this? 

MS spent 75 dollars on Kinnect, and 390 something on the XB1. They likely broke even, made a slight profit, on 500 dollar boxes, when you factor in shipping and warehousing. 

Cutting 150 dollars, and adding in two games, does not removing the kinnect make up for. It is absolute lunacy to suggest otherwise, and I think this is where the conversation ends. 

If MS sold the console at 50 bucks, the platform royalty is 7 dollars per, so do the math on how many games they would have to sell just to break even. 

Edited by BestOfAllTime32
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That wasn't anything to do with the topic. You just grouped all Americans together and said they were dumb. Like being American is a bad thing and they can't count. Also I don't know where you got the numbers from. Anyways you cant really say that last bit when you misspelled the word considered so I think you should probably not insult people and the topic should not just become an argument. When people start insulting others, then it is seen as either that they aren't worth listening to or that they can only defend their case via insults.

 

Not trying to make you seem like the bad guy, this topic gets people pretty heated I just wanted to tell you how it came off and that arguments resolve nothing :)

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That wasn't anything to do with the topic. You just grouped all Americans together and said they were dumb. Like being American is a bad thing and they can't count. Also I don't know where you got the numbers from. Anyways you cant really say that last bit when you misspelled the word considered so I think you should probably not insult people and the topic should not just become an argument. When people start insulting others, then it is seen as either that they aren't worth listening to or that they can only defend their case via insults.

 

Not trying to make you seem like the bad guy, this topic gets people pretty heated I just wanted to tell you how it came off and that arguments resolve nothing :)

I am a bad guy, no offence taken. The whole reason I want to see the dlc switch is for the laughs it will provide me when people have melt downs. I have no personal cares for the dlc being a month early/late. It would help a purchase decision, not make it for me, but it (hopefully) will be hilarious if the dlc switches. It's no fun when everyone gets what is expected.

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@BestOfAllTime32 You should listen to what @the_clay_bird says. Unlike you he knows what he's talking about. Now you're just pulling random numbers out your ass [console market is 6 billion, really?] and acting like you know commercial economics.
The US and EU are the biggest console markets on Earth. Together they make up for 75-85 percent of PS4's sales. Xbone has most likely similar figures.
You're making it sound like hitting break even is bad. It's not. A lot of business companies have BE as their main objective. Also generally speaking when you lower a product's price you sell more of said product.

And MS is far from reaching break even with Xbox. Last year they announced record revenue profits on the back of strong Xbox 360 and Xbox One sales.
 

 

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Appreciate you having my back @Slade

 

Not trying to brag or whatever, but Pricing is literally my job.  I have a B.S. degree in Economics/Finance, and I'm a Pricing Analyst for a industrial equipment parts company, so literally 8 hours a day i spend in spreadsheets of costs, prices, margins, demand, and competitive data and trying to determine what price points will maximize profit. 

 

Obviously i don't have access to the specific data from microsoft and/or sony, but the basic tenants of the pricing strategy is pretty much the same.  Electronics in general i know are usually really high % margin items, as it is relatively inexpensive to manufacture them.  

 

Not trying to be a dick, but just wanted it out there so people know i'm not just pulling stuff our of my butt

Edited by the_clay_bird
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I am a bad guy, no offence taken. The whole reason I want to see the dlc switch is for the laughs it will provide me when people have melt downs. I have no personal cares for the dlc being a month early/late. It would help a purchase decision, not make it for me, but it (hopefully) will be hilarious if the dlc switches. It's no fun when everyone gets what is expected.

​GG

:rolleyes:

I think this whole thread could have been 100 times better if it had been called: "Are we all getting the dlc at the same time?"

Edited by Lenne
The qouting system is strange. NV didn't write that. Dunno why the boxes got switched.
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Man the comments in this thread is rubbish filled with pointless console fighting.

 

Anyway, Sony is upping their game and it seems they are grabbing the CoD DLC early for their platform. PlayStation 4 dominating the market sure helps them to push more 3rd party contracts I guess.

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History is repeating itself I see. 

Last E3. People keep getting excited over zombies collection with only a a fake pic and a false confirmation source like Xbox Support

This E3. People keep getting Excited over DLC for PS4 with fake pics, and false confirmation by amazon

Next Year;s E3 will probably filled with more idiots claiming the word Confirmed. 

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History is repeating itself I see. 

Last E3. People keep getting excited over zombies collection with only a a fake pic and a false confirmation source like Xbox Support

This E3. People keep getting Excited over DLC for PS4 with fake pics, and false confirmation by amazon

Next Year;s E3 will probably filled with more idiots claiming the word Confirmed. 

​Yeah, calling people who are hoping to not get screwed over anymore idiots sure is the way to go.

:facepalm:

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History is repeating itself I see. 

Last E3. People keep getting excited over zombies collection with only a a fake pic and a false confirmation source like Xbox Support

This E3. People keep getting Excited over DLC for PS4 with fake pics, and false confirmation by amazon

Next Year;s E3 will probably filled with more idiots claiming the word Confirmed. 

​Yeah, calling people who are hoping to not get screwed over anymore idiots sure is the way to go.

:facepalm:

They aren't hoping though, he is talking about the people who are saying things are fact or are confirmed which always happens, not the people who want it to be fair.

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History is repeating itself I see. 

Last E3. People keep getting excited over zombies collection with only a a fake pic and a false confirmation source like Xbox Support

This E3. People keep getting Excited over DLC for PS4 with fake pics, and false confirmation by amazon

Next Year;s E3 will probably filled with more idiots claiming the word Confirmed. 

​Yeah, calling people who are hoping to not get screwed over anymore idiots sure is the way to go.

:facepalm:

They aren't hoping though, he is talking about the people who are saying things are fact or are confirmed which always happens, not the people who want it to be fair.

​So people who are saying: "zomg Mtn DEW, SONY, PS4, BO3 = PS4 gets DLC first" are saying that just because they want to annoy some salty Xbox fanboys and not because they are hopeful that they are not getting screwed over anymore?

Of course they are hoping just in a more destructive manner. 

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History is repeating itself I see. 

Last E3. People keep getting excited over zombies collection with only a a fake pic and a false confirmation source like Xbox Support

This E3. People keep getting Excited over DLC for PS4 with fake pics, and false confirmation by amazon

Next Year;s E3 will probably filled with more idiots claiming the word Confirmed. 

​Yeah, calling people who are hoping to not get screwed over anymore idiots sure is the way to go.

:facepalm:

They aren't hoping though, he is talking about the people who are saying things are fact or are confirmed which always happens, not the people who want it to be fair.

​So people who are saying: "zomg Mtn DEW, SONY, PS4, BO3 = PS4 gets DLC first" are saying that just because they want to annoy some salty Xbox fanboys and not because they are hopeful that they are not getting screwed over anymore?

Of course they are hoping just in a more destructive manner. 

​This is why I make Ultimate theories. 

To Satire people who jump to conclusions and start linking dots that aren't even there

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PS4 could be getting DLC first instead of Xbone. Or they might not. We don't 100% know, but hell - doesn't stop us from thinking about it. All we know for sure are rumors are flying around, and it's best to take everything you hear/see with the tiniest grain of salt unless it is matter-of-factly announced by Activision/Treyarch/Microsoft/Sony themselves. 

Would it suck to have Playstation get DLC early? For Xbox players, yes. At the same time, however, this gives us a second chance of whether to buy it or not? [Although I'm pretty sure we'd by anything Treyarch gave us even if we didn't like it.]

And vice versa for Xbox. The world may never know.

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