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Forums - Sony Discussion - iSuppli: Teardown of Sony's PlayStation 3

starcraft on 23 December 2008
Marty8370 said:
starcraft said:
It appears to not factor in assembly costs, as well as distribution and storage costs. This is not good. I thought they were substantially closer to breaking even than this.

I wont speculate as the how much those factors add to the $448.73 component cost, but even if it's only a few dollars its a hefty loss for those looking for a price cut soon (like yours truly) so as to pick up the console.

It states the amount of parts used in PS3 production has gone down by 30%, so no doubt assembly cost will have gone down also.

More PS3 production cost reductions are expected Feb/Mar 2009. That's when Toshiba starts Cell & RSX production at 45nm.

Everything you say is technically accurate, but ultimately misses the point.

Right now, in the holiday season, Sony is losing over fifty dollars per PS3 sold.  Even if the changes expected (but not guarenteed) in March come about, they wont save the console enough to make it substantially profitable, if profitable at all.  Are you expecting Sony to finally make it to barely breaking even only to drop $50 off the price again immediately?

 



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Asmo on 23 December 2008
Marty8370 said:

I agree.

Feb/Mar 2009 could easliy be the break even/even a profit point. Reason: thats when there next chip process shrink for cell & RSX too 45nm, that could easily shave off the $48.78 loss. Possibly even more.

And that could also mean a PSthree that would boost up sales nicely.

 



Asmo on 23 December 2008
Marty8370 said:



The PS3 now costs $448.73 to build while selling for $399. So Sony make a loss of only $48.73.

 

Also keep in mind that in countries with the euro currency, Sony is selling the PS3 at €399 and that's $557. So a profit of $109.



Hegarol2 on 23 December 2008
Rath said:
iSuppli are the idiots who predicted that the Wii would have negative sales in order to have the PS3 come out on top this generation.

THIS!



Marty8370 on 23 December 2008
starcraft said:
Marty8370 said:
starcraft said:
It appears to not factor in assembly costs, as well as distribution and storage costs. This is not good. I thought they were substantially closer to breaking even than this.

I wont speculate as the how much those factors add to the $448.73 component cost, but even if it's only a few dollars its a hefty loss for those looking for a price cut soon (like yours truly) so as to pick up the console.

It states the amount of parts used in PS3 production has gone down by 30%, so no doubt assembly cost will have gone down also.

More PS3 production cost reductions are expected Feb/Mar 2009. That's when Toshiba starts Cell & RSX production at 45nm.

Everything you say is technically accurate, but ultimately misses the point.

Right now, in the holiday season, Sony is losing over fifty dollars per PS3 sold.  Even if the changes expected (but not guarenteed) in March come about, they wont save the console enough to make it substantially profitable, if profitable at all.  Are you expecting Sony to finally make it to barely breaking even only to drop $50 off the price again immediately?

 

Once production of PS3 chips are 45nm, thats defo the break even/ or even a small profit.

No, I don't expect sony too pass on a price cut straight away. Summer 2009 is quite possible thou. Sony has gone on record saying that 2009 they will price PS3 agressivly.



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Galaki on 23 December 2008
Asmo said:
Marty8370 said:

The PS3 now costs $448.73 to build while selling for $399. So Sony make a loss of only $48.73.

Also keep in mind that in countries with the euro currency, Sony is selling the PS3 at €399 and that's $557. So a profit of $109.

 

And convienently ignore all the special taxes.



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starcraft on 23 December 2008
Marty8370 said:
starcraft said:
Marty8370 said:
starcraft said:
It appears to not factor in assembly costs, as well as distribution and storage costs. This is not good. I thought they were substantially closer to breaking even than this.

I wont speculate as the how much those factors add to the $448.73 component cost, but even if it's only a few dollars its a hefty loss for those looking for a price cut soon (like yours truly) so as to pick up the console.

It states the amount of parts used in PS3 production has gone down by 30%, so no doubt assembly cost will have gone down also.

More PS3 production cost reductions are expected Feb/Mar 2009. That's when Toshiba starts Cell & RSX production at 45nm.

Everything you say is technically accurate, but ultimately misses the point.

Right now, in the holiday season, Sony is losing over fifty dollars per PS3 sold.  Even if the changes expected (but not guarenteed) in March come about, they wont save the console enough to make it substantially profitable, if profitable at all.  Are you expecting Sony to finally make it to barely breaking even only to drop $50 off the price again immediately?

Once production of PS3 chips are 45nm, thats defo the break even/ or even a small profit.

No, I don't expect sony too pass on a price cut straight away. Summer 2009 is quite possible thou. Sony has gone on record saying that 2009 they will price PS3 agressivly.

Actually, Sony's most recent public declarations have denied all possibility of price cuts in the next 4 months and claimed that their strategy henceforth is "value-added" rather than "price cuts."

 



starcraft - Playing Games = FUN, Talking about Games = SERIOUS

Marty8370 on 23 December 2008
Galaki said:
Asmo said:
Marty8370 said:

The PS3 now costs $448.73 to build while selling for $399. So Sony make a loss of only $48.73.

Also keep in mind that in countries with the euro currency, Sony is selling the PS3 at €399 and that's $557. So a profit of $109.

 

And convienently ignore all the special taxes.

 

Even with taxes the Sony could be selling PS3 at a small profit in some markets, while lossing cash in others.



Zlejedi on 23 December 2008

You know I could make you such prediction in 30 seconds after getting 2006 value and using moores law :D



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Tyrannical on 23 December 2008
starcraft said:
It appears to not factor in assembly costs, as well as distribution and storage costs. This is not good. I thought they were substantially closer to breaking even than this.

I wont speculate as the how much those factors add to the $448.73 component cost, but even if it's only a few dollars its a hefty loss for those looking for a price cut soon (like yours truly) so as to pick up the console.

 

 It also doesn't factor in the R&D costs, which I thought was around $3B. Though that may have included the fab that Sony already sold off to toshiba.



Yet, today, America's leaders are reenacting every folly that brought these great powers [Russia, Germany, and Japan] to ruin -- from arrogance and hubris, to assertions of global hegemony, to imperial overstretch, to trumpeting new 'crusades,' to handing out war guarantees to regions and countries where Americans have never fought before. We are piling up the kind of commitments that produced the greatest disasters of the twentieth century.
 — Pat Buchanan – A Republic, Not an Empire