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PS3 now 70% Cheaper to Produce!

Forums - Sony Discussion - PS3 now 70% Cheaper to Produce!

Graves said:
JEDE3 said:
Graves said:
JEDE3 said:
Slimebeast said:
So some people here actually believe that the PS3 only costs $250 to make now?

Considering all evidence supports this conclusion... yes... it's logical to think this. Not everyone is like you and makes numbers up.

What evidence? Nothing has been confirmed, just speculation.

So it's speculation hearing the CEO say "70% reduction" ...never woulda guessed.

70% of what exactly? We don't have any real numbers. Just a few months ago they were still losing $40 per console.

Did Sony actually say that though?

Prediction:

TGS this year for PS3 will be amazing.

Grandia comes to PSN(PSone classic).

First Versus gameplay this year.

The Adventures Of Duane and Brando

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Skittles said:
Graves said:
JEDE3 said:
Graves said:
JEDE3 said:
Slimebeast said:
So some people here actually believe that the PS3 only costs $250 to make now?

Considering all evidence supports this conclusion... yes... it's logical to think this. Not everyone is like you and makes numbers up.

What evidence? Nothing has been confirmed, just speculation.

So it's speculation hearing the CEO say "70% reduction" ...never woulda guessed.

70% of what exactly? We don't have any real numbers. Just a few months ago they were still losing $40 per console.

Did Sony actually say that though?


Yes.



Skittles said:
Graves said:
JEDE3 said:
Graves said:
JEDE3 said:
Slimebeast said:
So some people here actually believe that the PS3 only costs $250 to make now?

Considering all evidence supports this conclusion... yes... it's logical to think this. Not everyone is like you and makes numbers up.

What evidence? Nothing has been confirmed, just speculation.

So it's speculation hearing the CEO say "70% reduction" ...never woulda guessed.

70% of what exactly? We don't have any real numbers. Just a few months ago they were still losing $40 per console.

Did Sony actually say that though?

yea both of them were direct quotes from Sony. 

On May 15th they said that the PS3 costs 10% higher than it's price. 

Yesterday they said they reduced manufacturing costs by 70%. 

That's exactly what they said, you be the judge.



currently playing: Skyward Sword, Mario Sunshine, Xenoblade Chronicles X

JEDE3 said:
But squilliam... that is definatly not what slime is trying to say. And if it were. I'd have agreed.


Are you for real?

Of course that is what Ive been saying.

It all started with Munkeh saying that Sony is profitable with it's software, and I disputed that.

My theseis is that Sony on average, since 2006, doesn't make money on it's 1st party software. I don't care about Motorstorm, Heavenly Sword, Uncharted or any other individual titles per se, those were just number calculations put there as examples of how much the profits/losses varies from game to game - not to be taken literaly! (because I can't obviously know all the data from each indivdual title since the marketing expenses numbers aren't official).



i was trying to find retail markups on systems but it's actually quite hard to find. I could only find that the Wii's margin for retailers is $12.50.



currently playing: Skyward Sword, Mario Sunshine, Xenoblade Chronicles X

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...which is 5% like i've been sayin...



Why do you assume they do it by percent. Just because wii is $250 and PS3 is $400 doesn't mean they have different margins.



currently playing: Skyward Sword, Mario Sunshine, Xenoblade Chronicles X

Lol... yeah, okay.



i see you like arrogant remarks like that instead of facts. Thanks.



currently playing: Skyward Sword, Mario Sunshine, Xenoblade Chronicles X

Seeking Alpha has a full transcript of the conference call up.

http://seekingalpha.com/article/153005-sony-corporation-f1q09-qtr-end-6-30-09-earnings-call-transcript?source=yahoo

The really relevant stuff begins at around Page 7:

Nobuyuki Oneda - The cost reductions since we introduced the PS3 is very substantial and this is on schedule and we don't disclose how much of the PS3, specifically, the cost reduction was achieved during the past two years, but that is on schedule.

Unidentified Company Representative - We'll just give you some rough number…

Unidentified Company Representative - About 70%, roughly speaking.

Daniel Ernst - Hudson Square Research - 70, got it. That's helpful.

Robert Wiesenthal - The third question is about just in general how we characterize the network sales so far?

Daniel Ernst - Hudson Square Research - Correct.

Robert Wiesenthal - Okay, it's Rob Wiesenthal speaking, I think we're pleased, there seems to be an increasing mix of films with respect to being downloaded and streamed especially as compared to the games, obviously, at the start of the PlayStation Network it was mostly just downloads of games and I think the breadth of the catalog's improving both on the game side and on the film side. I think right now close to half of our users have opted to signup for the network and I think it's running on track and we're expecting really great things this year from it, so, so far so good.

Nobuyuki Oneda - If you compare to the last year the networked sales is probably one-third of this year's forecast of 50 billion. The account number is up to 26 million, contents download has reached 540 million and we're on track for the projected 500 million.

Also a PS3/gaming division blurb on Page 9:

Sam Levenson - Standby, one second Ben, we're just pulling some stats

Nobuyuki Oneda - Are you talking about the first quarter result over the last year versus this year?

Ben Williams GAM - Yes. Let me just go over it again. If we look at the game business, just the game business as it was defined last year that generated 5.4 billion in operating profit and the new Networked Products and Services which is on slide nine of this year's presentation, it says FY08, you generated 4.6 billion in profits and that includes the games. So, my understanding is that the new division includes VAIO PCs, Walkmans, and the game business. So, if last year the game business generated 5.4 billion and the new division generated 4.6 billion, that means that VAIOs and Walkmans lost 0.8 billion. We've now got minus 39.7 billion. So there's about a 45 deterioration. I'm trying to work out how much it came from PCs and how much came from the game business.

Sam Levenson - Yeah, Ben unfortunately the (inaudible) math looking at last year's numbers won't work because there's different allocation of internal pricing on exchange rates, whereas, last year all the stuff was within a segment, this year we've got multiple segments that have been reordered. So, it would probably be easier for us to have this conversation with you offline than to try and do it over the conference call.

Ben Williams GAM - Well, I think we've got a meeting arranged for a couple of weeks, so we'll go through it then. That’s it, thanks.