$ony going bankrupt now confirmed... I highly doubt it's profitable given the hardware.

PS4 hardware is very low end compared to what PS360 were in 2006. So I believe him.

Dont get the comments in here.

Pachter was right about the pricepoint btw...he was sure it would release at 399. And it did. I was one of the few people who, ever since seing the specs, also predicted this pricepoint.Its a no brainer.

I'm with Pachter on this, and to be honest i think Sony was willing to sell the PS4 at 349 if MS announced a 399 pricepoint. I absolutely believe they are making money off the console ESPECIALLY since the camera is not bundled (which i think was a last minute decision as initially they said the controller was designed from the ground up with the camera). There was almost no talk of the camera at E3 and i think there focused shifted away from competing with Kinect and completely towards catering to the core gamer.

Also to address the hardware costs. If we agree that the GPU+CPU+RAM are the main cost factors in the PS4 then the price pachter is suggesting for cost of materials IMO is about right. People seriously need to realise that apart from the APU setup, the PS4 is running mid ranged hardware from the last generation of AMD releases.

The cpu cores are built from the ground up to be cost and heat efficient. A 7850 equivalent GPU which retails for below $200 is also cost and heat efficient. Factor in that this is an APU setup, which AMD have been releasing for Super cheap (granted the PS4 apu is waaaay more advanced than what we have available now).

The only pricey component is the RAM but thats easily offset by all the other cheap parts.

I also predict than in the next two years AMD will release the PS4 apu (4 core version) at a ~$200 price point.

Basically this. Maybe they sell it with small loss that will be offset if the customer buys one first party game. Both of the next gen consoles will be pretty cheap to manufacture as they use off the shelf parts. Xbox one might be even little more expensive manufacture because of larger APU and rumoured low yields.

I think they did an awesome job. They found the perfect sweet spot for price to performance ratio.

Personally though i would have added a few more compute units, something to match a 7950

But I can understand why they didnt do that. Looking at the Xbone vs. the PS4 nobody seems to even notice that the ps4 has a ~50% performance edge overall.

i bet they are breaking even or makeing at least 5 dollars per console. sony buys 1 million parts at a time so they get a deal on each part

Maybe on PC if you bought them in retail. However, that's not how Sony gets the parts.

yeah, and patcher also though xbone was going to be $400. his estimate is full of shit. i don't think sony is taking a massive loss but i'd guess in the $25 per console ballpark.

Patcher also was talking to Geoff that he was talking to a Sony exec and the exec said that sony was getting nervous that MS would announce 399. The exec also said that if they did that they would never be able to do 349 to undercut MS. That leads me to believe sony is taking either a very small loss or making a slight profit at 399.

He is not following the news.

http://www.vgchartz.com/article/250942/sony-not-going-to-take-a-major-loss-with-the-playstation-4/

They are gonna lose money, but no major losses.