Sony Losing Almost $250 Per Console


triksR4rabits

The Dutchmaster
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Wow; I had no idea Microsoft was selling 360's at a gain; I'm impressed. Sony, on the other hand, is getting hit fairly hard... seems like a crazy value though, considering the high production costs.

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Sony Losing Almost $250 per Console
The high cost of a next-gen system revealed.
by Hilary Goldstein

November 16, 2006 - It was clear that the cost of producing PS3 units were high for Sony, forcing the company to charge $600 per unit, but now we know exactly how high. Next-gen.biz has offered a full analysis of Sony's expenses. As it turns out, Sony is losing $306.85 for each 20GB system sold and $241.35 for every 60GB system.

The full production cost for a 20GB system is a whopping $805.85, with the 60 GB coming in at $840.35. Chief among the expenses are the RSX graphics chip at $129 and the Blu-Ray optical drive at $125. In contrast, the $400 Xbox 360 only costs $323.30. For the first time in its five-year console publishing history, Microsoft is making a profit on each system sold.

For those wondering about retailers, it should be noted that stores make almost no money selling consoles. Retailers such as EB Games and Wal-Mart make money on software and peripheral sales.

The steep cost of producing PS3s won't last forever. In general, the longer an item is produced, the cheaper it becomes to manufacture. Over time, the cost of the PS3 will get lower as the cost of parts gets cheaper and production becomes more efficient. That doesn't guarantee Sony will ever make a profit on selling the system alone, but it can still bank on earning a hefty paycheck from software sales and digital downloads.

The bottom line is that no matter what it costs Sony to make one, you only have to pay $600 to own it. In that sense, you're getting a hell of a bargain when you purchase a PS3.

edit: linked
 
The bottom line is that no matter what it costs Sony to make one, you only have to pay $600 to own it. In that sense, you're getting a hell of a bargain when you purchase a PS3.

Crimony! It's almost like free money for us, copiously dripping from Sony's nether regions! I mean, when you think about it, we should be thanking Sony for our ass-broadening experience. Come on, it really was our fault. Just look at the clothes we were wearing...

Errr. Misplaced analogy. Maybe you get the point? :p
 
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I don't know what the law is in America but in Europe it's illegal to sell goods below cost price, it's called dumping and is anti-competitive behaviour.

No one ever loses money on a console it's all a load of bullshit to make the ignorant think they are getting a bargin.
 
I don't know what the law is in America but in Europe it's illegal to sell goods below cost price, it's called dumping and is anti-competitive behaviour.

No one ever loses money on a console it's all a load of bullshit to make the ignorant think they are getting a bargin.

:lol: :lol: :lol: :lol:
 
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Do you think sony exec's have turned to one another yet and said something along the lines of "oooooohhhhh Fuck" ?
um, no? The ps3 is pwning the market. I almost pulled my arm out of the socket racing the mob to the store.

They'll be pulling in a profit very soon.
 
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I dont understand how you can make an assumption like that so soon? Prices and demand are extremely high, simply because quantities are so limited. Im not saying it wont be a huge success, but then again nobody can say that it will.
 
I dont understand how you can make an assumption like that so soon? Prices and demand are extremely high, simply because quantities are so limited. Im not saying it wont be a huge success, but then again nobody can say that it will.

2 words that explain how: Fan Boy
 
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I don't know what the law is in America but in Europe it's illegal to sell goods below cost price, it's called dumping and is anti-competitive behaviour.

No one ever loses money on a console it's all a load of bullshit to make the ignorant think they are getting a bargin.
Definitely, it's a mere marketing scheme to dupe dopes into thinking they're getting their money's worth.

- Alex
 
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Those prices seem realistic though; if they were inflated then they would inflate things like wifi as well.
 
Do you think sony exec's have turned to one another yet and said something along the lines of "oooooohhhhh Fuck" ?
The ps3 is pwning the market.
They'll be pulling in a profit very soon.

DS Lite: 148,174 35,077 (31.01%)
- PS3: 81,639 [Holy yes! A new entry!]
- PSP: 19,123 4,602 (19.40%)
- PS2: 16,157 4,825 (23.00%)
- Xbox 360: 3,864 2,716 (41.28%)
- GBA SP: 1,320 123 (8.52%)
- Game Boy Micro: 1,213 86 (6.62%)
- Gamecube: 496 151 (23.34%)
- DS Phat: 279 94 (25.20%)
- GBA: 12 8 (40.00%)
- Xbox: 3 3 (infinite)

YEAH SO MUCH PWNAGE ¬_¬ The god damn ds lite sold more then the rest together
 
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Do you think sony exec's have turned to one another yet and said something along the lines of "oooooohhhhh Fuck" ?
um, no? The ps3 is pwning the market. I almost pulled my arm out of the socket racing the mob to the store.

They'll be pulling in a profit very soon.

Sorry, but reality is that it's simply too expensive. An $800 (yes, that's what we Europeans get to pay) gaming machine? I don't think so, and HD's still a long way from being commonplace (hence no real need for bluray or HD-DVD).
 
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Well, you are entitled to your opinion.

As for the retard who posted sales statistics: IT CAME OUT IN AMERICA YESTERDAY. THEY ONLY RELEASED 400,000 HERE, AND SMALL AMOUNTS IN OTHER PLACES WORLD-WIDE. IT'S ALSO NOT A HANDHELD.


Christ ;)
 
No, you didn't know that. You thought you would be smart and post numbers when the thing came out YESTERDAY and ISNT a handheld ;)


Who compares sales of a home console to a handheld anyway?
 
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