I find this quite entertaining and amusing. I know numbers are quite dry.

But please, for discussion's sake - I just hope people who respond can actually give some numbers (with calculations) to back up their posts.

But of course, this will never happen. Haha.
I would be happy to do it for you guys though.

When the Q1 ending Jun 2008 Sony numbers arrive, I will do the exact same analysis.

Thread op your just bashing the PS3.

@Rock_on_2008

Like I mentioned, I don't mind you getting all passionate, as it is very nice to have it in the forums.

Can I ask you about your assumptions then?  You don't have to calculate the numbers, I will do it for you.

Here are my questions (your assumptions):

How much does Sony make per PS2 hardware sold (after all other costs, including marketing, etc.?)

How much does Sony make per PSP hardware sold?  Profit or loss?

How much does Sony make per PS2 software on average?

How much does Sony make per PSP software?

If you wish to answer one of these questions:

How much DID Sony make/lose per PS3 for the past 2 years on average?

How much does Sony make/lose per PS3 software (this takes into account development costs, etc).

Can you answer them for me?  Then I can do the calculations for you.. please...

I truly don't recall, but I think I remember reading that the PSP cost sony about $75 more to make than they were selling the first versions for. They got it down in the second year and from what I remember, the redesign put them back in the red again. I don't know the real numbers and I couldn't find anything googling, but I know the PSP was a loss-leader for a while and a significant one at that.

As for the PS2, rumor was that Sony was making about $8 bucks a unit or so on the $129 price tage at the end of 2006 so I suspect they are doing better by now. Some time in mid 2007, the slimline underwent another redesign internally where a significant number of components were combined and the complexity was reduced yet again. If there were any increases in profit margin over the $8 guess above, I would assume it would have come around that time or somewhat later due to inventory having to clear.

Just a couple of bullets for your estimates.... You really should try to find the PSP estimated losses as they were quite large...

This is not the first time I've seen a statement like this, and it's laughable.  The XBox is dead and gone; its loss total will stand forever as it does now.  The PS3 has ~7 years of sales ahead of it and its toughest times are behind it.

Point taken, though: PS3's early years including costs of Cell development have brought about a loss equal to XBox's lifetime loss, while all the years of increased PS3 profitability are still to come.

And throw in Blu-Ray...the war ate up lots of money too, and the profitable years, the spoils, are to come.  (or just deny that there will be profits...downloads are the future, blah blah)

Yes, because all the investors are deciding how they can make the world a happier place and let all the sparrows sing thier little song in the forest. Seriously, get a grip. Sony is selling thier software at a loss because they need it to be adopted and they would have even weaker sells if they had a higher price point. They need the high adoption because they are pushing it as a blu ray player so they can increase the adoption of thier proprietary format. Second, they believe they will make the money back on the liscenses. So, they take the loss to increase install base.....to make more profits.

Sony is not any better to the consumer than Nintendo is, in fact I believe they are worse. Lets not all forget the "The generation does not begin till we says it does" or the "we don't think we need games at launch, the name will sell itself" quotes we heard from execs.

Im laughing so hard right now.

It's funny how fans of the PS3 take this shit so serious.

I don't get it? Why?

I would only add that R&D should not be considered a loss but an expenditure. It would only count as a loss if the PS3(and Blu-ray) were scrapped and not released. Also, while 'assumption' seems to be the word of the day, my assumption is that Sony wasn't the only company involved in the R&D costs of Blu-ray. IBM and some others assumed some as well. Finally, with a company as large as Sony melding it's video game and movie arms via Blu-ray, expenditures, and yes, losses, are expected as everything shifts to one format. I'm also assuming these financials are keeping to the video game side of the house and do not include licensing fees and other realized profit from the sales of Blu-ray movies. Blu-ray being an R&D expenditure for both sides of the entertainment division should not be hung on only the video game side.

@kn

Understood. I will try to look up PSP losses.
But I think there are other people in the forums that know more about this.

I can do the $75 LOSS per unit then.
I can still assume either $4 or $10 for PSP software. Maybe $4 is more realistic than $10.

I will go and do the analysis @ $75 loss per hardware, which is fairly substantial. :)
cheers.

You add nothing when you come in and pretend to laugh at people on the internet in an effort to disparage one side of the discussion.

Follow?