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PSVita consists of $159 worth of materials? PSVita's Guts Inside!

Forums - Sony Discussion - PSVita consists of $159 worth of materials? PSVita's Guts Inside!

This may be true, but they are still losing money. It still costs them money to ship it, and the $250 is how much customers are charged--the store pays Sony less than that.

Plus, if Nintendo's taking a loss at $170 on the 3DS, Sony are definitely taking one for the Vita.



Could I trouble you for some maple syrup to go with the plate of roffles you just served up?

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whaaaat? i thought Sony was selling these bad boys for a loss :O



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If true, this is good news. Sony can finally start recovering from all those PS3 losses. And if really necesarry, they can cut the price and still profit from the software if they don't loose too much.



Shinobi-san said:

whaaaat? i thought Sony was selling these bad boys for a loss :O

they are  http://www.escapistmagazine.com/news/view/110862-Sony-Will-Lose-Money-on-Vita-Hardware-Sales 



thekitchensink said:
This may be true, but they are still losing money. It still costs them money to ship it, and the $250 is how much customers are charged--the store pays Sony less than that.

Plus, if Nintendo's taking a loss at $170 on the 3DS, Sony are definitely taking one for the Vita.


You can't really claim that with a 100% certainty though...sony have also said themselves that they do not plan on selling the vita at a loss. However the more latest comments suggests that they are selling it a loss but only slightly for the wifi model at least. I dont see them selling the 3g model at a loss though.

Also, as far as i know the 3DS has not been confirmed to be selling at  loss, or has it?



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Imagine the insane profit on buying a prepaid iphone or any smartphone for that matter !



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How can it be roughly the same production cost as the 3DS?

Good on SONY though for selecting the right hardware, cheap and powerful, lets hope it is reliable too. They wouldn't suffer too much from a price cut and as somebody already said, they can pump the profits back into promoting the Vita.



Shinobi-san said:
thekitchensink said:
This may be true, but they are still losing money. It still costs them money to ship it, and the $250 is how much customers are charged--the store pays Sony less than that.

Plus, if Nintendo's taking a loss at $170 on the 3DS, Sony are definitely taking one for the Vita.


You can't really claim that with a 100% certainty though...sony have also said themselves that they do not plan on selling the vita at a loss. However the more latest comments suggests that they are selling it a loss but only slightly for the wifi model at least. I dont see them selling the 3g model at a loss though.

Also, as far as i know the 3DS has not been confirmed to be selling at  loss, or has it?

You do make a fair point, but I just can't see them making $110 profit per system--there is just no way.

3DS was selling at a profit at its launch price of $250, but Nintendo stated that they're now taking a loss.  It's the main reason why they posted their first annual loss ever in the history of the company.



Could I trouble you for some maple syrup to go with the plate of roffles you just served up?

Tag, courtesy of fkusumot: "Why do most of the PS3 fanboys have avatars that looks totally pissed?"
"Ok, girl's trapped in the elevator, and the power's off.  I swear, if a zombie comes around the next corner..."
Shinobi-san said:
thekitchensink said:
This may be true, but they are still losing money. It still costs them money to ship it, and the $250 is how much customers are charged--the store pays Sony less than that.

Plus, if Nintendo's taking a loss at $170 on the 3DS, Sony are definitely taking one for the Vita.


You can't really claim that with a 100% certainty though...sony have also said themselves that they do not plan on selling the vita at a loss. However the more latest comments suggests that they are selling it a loss but only slightly for the wifi model at least. I dont see them selling the 3g model at a loss though.

Also, as far as i know the 3DS has not been confirmed to be selling at  loss, or has it?

thekitchensink is right. This is just the components, shipping, advertisement and retailers also have to be taken into account. The 3DS was estimated to cost $110 or so in production and now Nintendo is making a loss at $169. Didn't Sony say they'll lose money on the hardware?



It definitely costs more than 140$ when you factor labor, research, electricity, etc... But seriously this is not how the market runs. There is no "fixed price" for the goods in sale. Saying that even if they sell badly they would still profit is not true at all. It doesn't work that way.

@Tridrakios I disagree. They will end up producing a lot of devices, so if they can't be sold then that's gonna cost them. Not to mention, who will be willing to make games for PSV if the number of hardware devices is low? If they don't sell enough, then a price cut is needed IMO (I'm not saying the PSV will flop, just that it's Japanese numbers aren't encouraging and need to be fixed. Saying that it's profiting so they don't need to drop the price is false logic as there is also concern for long term profitability which is much more important than short term, if it really is profiting at all).

And finally don't believe everything you read. I'm not claiming the article is false, but I firmly believe that the person who wrote it doesn't really fully understand what he/she's talkin about.



YNWA