Yah and I was "clearly" responding to the whole thread (you know, the OP is not the ONLY thing you should read in a "thread") and responding the a lot of people saying Sony was selling the PS4 at profit... 

Jesus, now just sit down, take a breath and stop looking at every discussion with your Sony vs Microsoft war lens... I'm not attacking Sony and I do not care if they make profit out of it or not lol

This exactly. Sony buys the components in MASSIVE bulk and gets things much cheaper than the retail prices. So in fact the cost for building the PS4 is much less if they only added up the retail price.

But in reality, with an attach rate of about 2.5 games per console as seen from some recent estimates, Sony will be in rather good shape going forward until the price of the components drop even further. Not to mention, they are very competitively priced, so a huge price drop like the PS3 won't be necessary.

You should edit this. Just a friendly tip.

Good advise :) The goal was not to treat him in any way but really to talk about the kind of discussion/thread (and not people) he was referring too.

True, true. A finished product is more than the sum of its parts, that's easy to forget. I made a post similar to yours about one page back.

SnakeDrake said: So this is Sony's first console with each unit making a profit(small as it may be)

if this analysis is true they don't make a profit per unit, as this is just the parts/assembly costs - you have to add retailer cut, transport costs, marketing costs and R&D costs per unit (and whatever costs I didn't think of) to that

Agree with users saying that Sony is get bulk pricing. There is no way they are paying retail for anything because they could have easily shop around based on price. Also as a first go around, the device is very efficient, im sure with future redesigns they will be able to expand their hardware margin quite easily. Sony has always had first year operating losses on their hardware, its just the PS3 was so extreme, its kinda skewing things.

Lafiel said: SnakeDrake said: So this is Sony's first console with each unit making a profit(small as it may be) if this analysis is true they don't make a profit per unit, as this is just the parts/assembly costs - you have to add retailer cut, transport costs, marketing costs and R&D costs per unit (and whatever costs I didn't think of) to that

They *could* be making a profit if you account for the world-wide average selling price, which is going to be higher than the $399.

Assembly costs wouldn't be that large, it's china after all.
And AMD did most of the R&D anyway, thanks to the PC, it's not like they sunk 100's of millions into any singular chip.

I doubt that, as in europe even sales tax/vat of ~20% (depends on the country) is included in the 400€.

It's a good thing the British pound is worth 60% more than the USD, isn't it?
That's right. If you converted the 400 pounds to USD it would be $640, give or take.

The Euro is 35% higher, peaks sometimes around 40-50%.

The Australian dollar however is 6% lower in value against the USD, yet sony charges an extra 37% more, our taxes aren't that obscene, other countries it's even more insane.