[Diemenz]

Originally Posted by McG

I think this is clever by Sony. They wanted to get as many PS4s into homes as possible and saw their way forward to do this with a lower price out of the gate. now, with initial market penetration above the Xbox one, they have an opportunity to improve margins and blame exchange rates which may or may not be true. Most people on this thread are assuming that all PS4s are purchased from or through the US, or are spot transactions against the USD, which would be incredibly inefficient and not very clever.

Most goods that are destined for other countries pass through free trade zones, where they move currency and duty free through shipping and delivery mechanisms to other destinations. there is no requirement for the good to be "owned" at that point; payment isn't released then.

Wouldn't the cost of a PS4 be CAD vs YEN, and not CAD vs USD? Why would that affect M$? wouldn't M$ be more affected by the USD, or more likely they settle with the manufacturer in local currency? meaning CAD vs Renmimbi?

And no matter what, all of these companies are hedging currency and should have forward or futures contracts guaranteeing rates and costs.

There is no guarantee that either Sony or m$ have to increase prices today or ever due to currency fluctuations if they aren't trading in those currencies.

One thing is for sure though; this is a long game and anyone that thinks otherwise is being foolish.

I think we know what will happen if the Xbox one either equals or exceeds the perceived value of the PS4; it is the same thing that has happened in favour of Sony up until now.

Sorry common sense is not allowed in this thread.