@King_Dodongo said:
The slim ps4 is basically a desperate move. NO point in buying one.
It's not a desperate move at all.
The PS4 Slim is not meant for people who already own a PS4. It's simply meant to replace the existing PS4 model with a smaller and cheaper to manufacture model. This increases Sony's profit margin on new consoles sold. It's purely a business move by Sony. There is no desperation in increasing your profit margins. Every single company looks to increase their gross margin by any way they can.
So you may say, "why don't they drop the price if it's cheaper to make?". Price is determined by demand. It's in any company's best interest to keep the price of a product as high as they possibly can and still meet their sales goals. There is no sense in dropping your price if you're still moving profit and staying profitable at your current price point. Only when your price point is hurting the demand of your product do you adjust the price if you are able. A move to a slimmer, and presumably cheaper to manufacture console, gives them more profit now while giving them the ability to reduce the price without incurring a loss per unit.
There is no desperation in this. Microsoft did the exact same thing with the Xbox One S. The One S is a bit more powerful simply because they clocked the GPU and CPU a bit higher. The actual hardware remains mostly unchanged.
There are other ways of increasing your profit margins too. Sony increasing the price of PS+ to $60 a year is a pretty good example of this. Their research into a price increase led them to believe that a $10 a year price increase would net them more new revenue than it would lose them from people discontinuing service, so they went ahead with it.
Another way to reduce prices is to find other vendors that can supply you the parts you need for your machine at a lower cost. While AMD is still supply the CPU and GPU for the PS4 Slim and Xbox One S, Sony and Microsoft could have found somebody else to build the motherboard, disk drives, harddrives, and RAM, or simply renegotiated their contracts with their existing suppliers. AMD could have also been able to reduce the cost of their chips by figuring out better manufacturing methods or finding cheaper materials.
Tons of ways to save money on a device. One of the most obvious is just to shrink the size of the device. Smaller devices means less raw resources needed which means a lower price to manufacture.
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