Boston (ChatterShmatter) – Sony is in an interesting position with their next-generation handheld the Sony PS Vita. They have a handheld that the public is certainly interested in, but is struggling in sales due to its high price point. Whet we have learned though is that Sony is in a position to drop the price of the handheld in a big way.
The Sony PS Vita released in Japan in December in two models. The 3G model sells for the equivalent of $300 in the U.S., while the base model sells for $250.
These are the price-points that the next-generation handheld will retail for on February 22, 2012 when the handheld releases in the U.S. and Europe.
When the PS Vita released in Japan, a big deal was made over the somewhat lackluster sales immediately after launch. Sony, however, seemed to be perfectly fine with the sales, and here is why.
UBM TechInSights has done research and has discovered that the 3G Sony PS Vita costs Sony only $159.10 for them to manufacturer.
This means that Sony is turning a profit or $140 on every 3G Sony PS Vita they sell.
This is a huge change from when the Sony PS3 released, as it was expected that Sony was incurring a loss on every console sold.
So what does this all mean? What this means is that the reason Sony is perfectly fine with the PS Vita sales, is because of the mark-up.
Sony is in the position where they are going to charge this price point for the early-adopters of the handheld, making a considerable profit.
Once these consumers are tapped out, they could easily cut the price of the PS Vita to under the $200 price point and still be making money off of the handheld, all while they continue to profit off of accessories, the PlayStation Store, etc.
Sony is clearly thinking long-term with their next-generation handheld, and they are displaying patience in the fact that they have yet to drop the price.
It is clear based on the research by UBM TechInSights that Sony wants to make money off of the handheld in the short and long run, and due to the high mark-up, they simply do not need to sell as many PS Vita handhelds to garner the profits they may be seeking.
In the short-term, expect Sony to stay the course, but what this means is that in the months ahead, expect Sony to be in a position to aggressively price the PS Vita to further grow their market share.
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