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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!

I was surprised at the material costs when I checked it from my sources this morning.

The screen is the most expensive piece apparently , no surprise, that thing is sexy as hell *-*

I'm getting the Wi-Fi model though, not interested in 3G service nor hardcore online gaming.



    

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159?
Retailer cut is usually less than 5%, so anywhere from 2.50 to 12.50, say 8= 167
Shipping, likely 1.10 per unit in bulk shipment=168, packaging, 1.50, 170.

Cost to put the parts together and labor? Probably around 10$ per unit.

So, 180 in total?

Cost of developing games, R&D, advertising....It's probably really close, but better and better the more they sell, obviously. They totally make bank on the 3g, and given the memory card...they probably make around 50$ on average between the two variable consoles.



We'll probably never know how much Sony make/lose on each unit even if we knew the price for all the components as there are so many costs to take into consideration.

Fixed:
R+D,
Setting up production lines,
Initial advertising.

Variable on production:
Paying workers to: (combing parts, box them, customer service, etc)
Shipping costs,
Retailer margins,
Banking costs, (transfer charges/VISA etc)
Continual advertisement.

And on top of that you have more after sale costs to take into consideration such as
Technical support
Producing extra units to replace faulty ones under warranty
Producing extra individual parts for replacement/fixing
Paying people to fix them.

This is just off the top of my head.

Sony may well still have profited on each unit sold, but we won't know just by looking at part costs.



italo244 said:
1.25 each camera? dafuq




People are forgeting Fixed COST
-The R&D spent to making the ps vita
- the salaries to pay all the workers involve making and selling the vita
- the buildings/factories/utility cost.
These are just variable cost of each vita.

People are so fixed in the micro-view of a product.
Need to look at the bigger picture.



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Hold on a second Euphoria. You list UBM as the source however they don't seem to be the source of what you posted. They are the source of the component list. As far as I can see they make no estimation as to the price of the components.

That estimate seemingly comes from the website gamezone. A site I have never heard of and seems to have a tiny tiny readership. In fact the site Gamezone provides no sources at all for the costs of the parts. Where did they find them? We have no idea.

EDIT: Maybe gamezone paid for the report then simply reposted the figures from it? Maybe, pretty harsh on UBM if they did that though. 



Turkish says and I'm allowed to quote that: Uncharted 3 and God Of War 3 look better than Unreal Engine 4 games will or the tech demo does. Also the Naughty Dog PS3 ENGINE PLAYS better than the UE4 ENGINE.

As has already been pointed out, this is simply the BOM and lots of costs haven't been considered (for example licensing costs on operating system). When all costs are considered, I wouldn't be surprised to see Sony breaking even or losing money by selling the system at $250.



thekitchensink said:
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.

In Japan they definitely make nice profit with each Vita sold because of strong yen(25 000 yen = $324, 30 000 yen = $388). In the west they probably take a bit of hit per Vita at least in the beginning. Vita is still definitely the most profitable Sony system since PS1 to sell as after that every system have been sold with rather huge loss in the beginning.



Hmm is it just me or that calculation doesn't include quad core gpu ?



PROUD MEMBER OF THE PSP RPG FAN CLUB

Looks like Sony is greedy, the Vita should actually launch at $150.



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