Sometimes you just have to wonder who pays analysts for their supposedly carefully researched, well thought out advice after they come out with statements that are absolutely silly.
Today’s ‘No Sh*t Sherlock’ statement comes from Gartner’s Gartenberg who said Sony might want to consider a price cut for the Vita, adding that that would be flying off the shelves at $79 or $99 each. He continued:
You have to wonder how big a misstep this may be for Sony, and does this mark the last of these type of devices[?]
But what exactly is the point of his comment on prices? Cars would sell a lot better if they were only $20, everyone would have iPads if they were three bucks. But they’re not – not because the companies are greedy, but because such price cuts would be insane and end up severely hurting their bottom line. Depending on reports, and where it’s sold, the Vita either just about breaks even or loses Sony a little bit of money – that’s with them selling it at $249 and $299 – with the main idea being that the company profits off of games sold. Sure, you could argue that Sony could bring down the price to $199 to be more competitive and attractive to on-the-fence gamers, but $79? People would be buying them at a whim just to try out the odd game, but Sony would need them all to buy tens of games simply to get their money back.