Sony losing over US$ 300 on each 20GB PS3
- Thread starter zhuanai
- Start date
A good reason to get a PS3 
If they sell 4mill PS3s then they'll have spent in the region of $1,000,000,000 of their own cash. Kinda mental.
If you assume that Ninty make $20 on each console sold and they sell 4mill though, they get $80,000,000 in the pocket straight away
Who has the best strategy I wonder ?
btw.. anyone know the real figure of Ninty's profit per Wii ?
If they sell 4mill PS3s then they'll have spent in the region of $1,000,000,000 of their own cash. Kinda mental.
If you assume that Ninty make $20 on each console sold and they sell 4mill though, they get $80,000,000 in the pocket straight away
Who has the best strategy I wonder ?
btw.. anyone know the real figure of Ninty's profit per Wii ?
Considering that according to the same people, MS make over $70 profit on each one, it could be a huge problem for Sony.
A real role reversal isn't it!
EDIT: Original source: http://www.isuppli.com/news/default.asp?id=6919
A real role reversal isn't it!
EDIT: Original source: http://www.isuppli.com/news/default.asp?id=6919
Last edited:
Moonpie2 said:
It looks like it's more than $300 per unit if you factor in the profit margins/distribution etc, but then you also have to consider that as they refine the manufacturing process and the parts start coming through in higher numbers the manufacturing cost will drop.
Permabanned
- Joined
- 8 Mar 2003
- Posts
- 4,055
- Location
- Looking at the internet
This is why you won't see PS3 in the Europe until September 07. They cannot afford to mass produce so many that they make such huge losses in the short term.
Caustic said:
Yeah probably buying the bits and assembling may marginally make money. But as said wont cover shipping etc. Also wont cover the money they will be acruing for developing the console, returns, marketing etc. which is how the home entertainment devision loses so much money.
Its all the way the right off the money off really and how u spin the figures.
Same with the PS3 loses 300 a console, might at first but even a few months into production it drops as the blu diodes become more readily available, cell yeilds increase etc. Also the buff up the money through software and blu ray sales which are spurred on by the PS3.
The problem for Sony is they might have to drop the price before they even get close to breaking even. So they end up always losing large sums of money. It takes many months before they start to reduce costs in any significant way.
Sounds like the original Xbox. However, it didn't stop that from being a great console.
Sounds like the original Xbox. However, it didn't stop that from being a great console.
AS nearly every console in history (especially at the start) has been sold for a loss - this aint exactly ground breaking news Im afraid - most companies usually only make profit from the software sales and add-ons (extra controllers, eye-toy, external drives etc)
Remember also that each software company ( I seem to recall) buy a licence to sell software for whichever console - so while hardware losses could add upto the above amount over a relatively short period, there are several different software revenues which will assist in balancing this out - not to mention any online payments etc
Remember also that each software company ( I seem to recall) buy a licence to sell software for whichever console - so while hardware losses could add upto the above amount over a relatively short period, there are several different software revenues which will assist in balancing this out - not to mention any online payments etc
