PSP might not launch in March of 05

Fox5 said:
PSP WILL NOT cost thousands of dollars per unit to make. Maybe if you factor in advertising, research, and all related costs with the PSP as the cost per unit, but the hardware won't cost thousands of dollars per unit.

Exactamente!! :D

This is why the handheld is unlikely to turn a profit on day one -- there are a lot of (non-production) costs that Sony will have to pay just to break even.
 
Right back to my "everything would be unprofitable at launch" comment, then.

EVERY company has to recoup pre-launch expenses, and yet they still talk in terms of understood profitability. They still mention when platforms have "become profitable" not "have countered all the nebulous investments that were made to it before and during launch."

Else we re-evaluate just about every assumption we've been making thus far and consign it to hopeless confusion.

Tell me Pepto, do you believe the PS2 was--just from a hardware and shipping standpoint--profitable at launch? It seems like Hirai is describing the same exact circumstance that pretty much everyone on here agrees with regarding the PS2, so... wherein lies the obvious difference?
 
cthellis42 said:
Right back to my "everything would be unprofitable at launch" comment, then.

EVERY company has to recoup pre-launch expenses, and yet they still talk in terms of understood profitability. They still mention when platforms have "become profitable" not "have countered all the nebulous investments that were made to it before and during launch."

Else we re-evaluate just about every assumption we've been making thus far and consign it to hopeless confusion.

Tell me Pepto, do you believe the PS2 was--just from a hardware and shipping standpoint--profitable at launch? It seems like Hirai is describing the same exact circumstance that pretty much everyone on here agrees with regarding the PS2, so... wherein lies the obvious difference?

Didn't the initial half million US ps2s cost nearly $500 per ps2(so $200 lost) because they had to do some emergency overnight shipping to get them to the US in time?
 
Don't know, but I certainly wouldn't count it out. Initial launches tend to have their own extra-special problems. ;)
 
cthellis42 said:
EVERY company has to recoup pre-launch expenses, and yet they still talk in terms of understood profitability.

It's all about perspective really. :oops:

PSP can be profitable on a per unit basis while at the same time unprofitable in aggregate.

This outlook is likely to be the case for the short run.
 
It's funny, but already some of my friends, who are so called "mainstream gamers", think the PSP is actually PS3 :oops:
When they talk about it, they say "PS3" instead of "PSP" :?

They are the same persons who still call the xbox "Playstation xbox" :D

I am constantly amazed by the dumbness of my friends :(

Maybe it is a good idea by Sony to launch the real PS3 in 2006 or even 2007, at least if my friends are any indication of Sony's potential market.
Do you think there'll be confusion between PSP and PS3 if they were launched too closely together.
Oh, and remember that xbox2 is going to launch sometime in 2005-2006 too, I wonder what mess that'll be in those peoples heads... Playstation Xenon.. Playstation xbox2...PSXbox2... PSX2!!!
 
^^ It's all those X's... People just group them all, if they see an X in 2 different names, they think it's the same thing.

PSP-PS3, even worse... they'll think it's the same thing until they actually see a PSP AND a separate PS3 side by side.... And even then, they might think the PSP is just a PS3 controller or something.... ;)
 
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