drkohler said:
Quelle surprise.. the two resident nutjob smysticD and Bitmap Frog jump on the occasion trying to ridicule me once again... Look folks, early this year, the manufacturing costs were estimated to be around $400 (for example, So claims Nikko Citigroup analyst Kota Ezawa, BusinessWeek. You can find similar estimates googling long enough). What made the manufacturing price jump up almost $50 according to iSupply? We would have to see the new detailed breakdown to guess what happened. I'll stick to my estimate of $350 for the manufacturing costs of currently sold PS3s, and note this is a value +/- 10% (how iSupply can estimate costs down to the last cent is irritating to say the least, it is very bad practise for anyone to estimate costs giving values to the last cent). I could not find a detailed breakdown of the $448.73 so it is hard to tell what went wrong this time (and yes, resident two nutjobs, the $840 table had its errors in it). Assuming the manufacturing costs indeed "rose" to $450, this would mean Sony loses at least $100 per console (there is something like shop margin and taxes in case you missed it. In Europe, this increases the end price somehwere between 20 to 35% depending on country. So selling a console at 300 Euro = $450 would equate to losing 20-35% for Sony. (And to preempt any further comments from me: Yes, two residents nutjobs, I am making up all those numbers and I have no idea what I am talking about since I have never worked in mass manufacturing industries for 25 years).
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If PS3 production cost is $448.73 that coverts too £302.62
PS3's RRP is £299 so the loss is £2.63 big deal.
Can't really work out what small loss Sony makes when selling to trade as who knows the trade price. Anyhow any loss will be made back on games/accessories.
Even Home/PS Store will contribute.
