We believe that both the PS3 and xBox 360 shipped between 70-to-75 million units each over the past few years. Assuming similar success, for the PS4 and xBox One, and assuming $60 ASP per processor and 20% operating margin would translate to $9 billion in revenues and $2.40 in EPS over 6 years, or an average annual EPS of $0.40.
I bought a PS3 because it was as good as some of the other Blu-Ray players on the market. The fact it plays games is bonus.
As people upgraded to PS3 they traded in their old systems and libraries, which is why Sony made the move to not support backwards compatibility with later iterations of PS3 ... That’s why the ‘buy, sell, trade’ model works well. It enables people to purchase new games by trading in their old ones. We expect to see the same thing with this transition for PS4 and Xbox One. Trade-ins allow for a seamless transition.More quotes »
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