drkohler said:
This is NOT what Sony said in their fiscal reports, unless you selectively quote things out of their reports. In fact, the list price of the PS4 INCREASED sometimes in 2017 (at least in Europe) due to higher costs (the ram deal probably had to be renewed). Also, contrary to what you think, manufacturing costs generally INCREASED year over year the past decade. That is simply a fact of higher labor costs in China (go figure why the Chinese actually moved manufacturing into third world cuntries like Vietnam and Bangla Desh, for example) and lower product quantities ordered. There is no question that Microsoft loses shittons of money on hardware (the $99 XBox1 SAD is a particularly glaring example). Contrary to what you think, Microsoft had to play the price card to stay at least somewhat relevant (outside of NA). For the past years, XBox consoles have at all times sold considerably below the prices of the PS4 in Europe. Often $100 below the price of the PS4. And $100 on a $300 product is way, way, way, way, way, way below the manufacturer's margin of a console. That is a simple fact of mass manufacturing. And lastly, I can only repeat what I already said: At $199, no current gen console is profitable on the hardware level. |
Nope. Here's a direct quote.
”Operating income increased 46.9 billion yen year-on-year to 135.6 billion yen (1,210 million U.S. dollars). This significant increase was primarily due to PS4 hardware cost reductions and the above-mentioned increase in PS4 software sales, partially offset by the impact of the price reduction for PS4 hardware and a decrease in PlayStation®3 software sales."
You also say manufacturing costs have increased, yet where's the proof? The costs electronics continues to drop. You can go grab a 50" 4K Smart TV for $200-$225, now, sometimes less. Something that would have cost $500+ just a few years ago. Those companies aren't losing money on those. So yea, try again, next time.
Last edited by thismeintiel - on 30 November 2019
