By using this site, you agree to our Privacy Policy and our Terms of Use. Close
the-pi-guy said:

numberwang said:

Retail price is typically twice the production cost. Sony has to take a big L in the beginning here.

Since when?  

Phones tend to make a lot of profit.  Consoles tend to about break even, because console makers sell the software and accessories at a solid profit.  Whereas phone makers don't sell all the software, instead that goes to the OS makers.  

https://www.engadget.com/2013/11/19/ps4-costs-381-to-make-according-to-hardware-teardown/

https://www.afterdawn.com/news/article.cfm/2008/12/31/isuppli_releases_bom_report_on_playstation_3_costs

https://technology.ihs.com/467389/microsoft-xbox-one-hardware-cost-comes-in-below-retail-price-ihs-teardown-reveals

https://www.theregister.co.uk/2005/11/24/xbox360_component_breakdown/

They might decide to lose a small portion of money, but it's not going to be an unusual amount.  

Production is only one part of the whole business chain. Retail price has to cover shipping from the factory to warehouses, tariffs, all retail chain costs, customer delivery, warranty period, labor, all taxes and profits for every middleman. We have to see how much Sony is willing to subsidize hardware now that they have the upper hand again. There is a good chance they come with a basic (500GB SSD and potentially gimped in other ways) and premium version (2TB SSD).