|Bitmap Frogs said:
Wait didn't Dkholer went to MS forum with "insider" information that PS3 only cost $350.00 to build.
And Groucho call us bunch of ignorances when we ask him to provide something to back up his claim.
So after 2 years Sony still lost $50.00 per console... it make sense why they would put out the 160GB sku because with that Sku at least they are breaking even or even make some money.
I was about to bump that thread with this...
Quelle surprise.. the two resident nutjob smysticD and Bitmap Frog jump on the occasion trying to ridicule me once again... Look folks, early this year, the manufacturing costs were estimated to be around $400 (for example, So claims Nikko Citigroup analyst Kota Ezawa, BusinessWeek. You can find similar estimates googling long enough).
What made the manufacturing price jump up almost $50 according to iSupply? We would have to see the new detailed breakdown to guess what happened. I'll stick to my estimate of $350 for the manufacturing costs of currently sold PS3s, and note this is a value +/- 10% (how iSupply can estimate costs down to the last cent is irritating to say the least, it is very bad practise for anyone to estimate costs giving values to the last cent). I could not find a detailed breakdown of the $448.73 so it is hard to tell what went wrong this time (and yes, resident two nutjobs, the $840 table had its errors in it).
Assuming the manufacturing costs indeed "rose" to $450, this would mean Sony loses at least $100 per console (there is something like shop margin and taxes in case you missed it. In Europe, this increases the end price somehwere between 20 to 35% depending on country. So selling a console at 300 Euro = $450 would equate to losing 20-35% for Sony. (And to preempt any further comments from me: Yes, two residents nutjobs, I am making up all those numbers and I have no idea what I am talking about since I have never worked in mass manufacturing industries for 25 years).