Link

"The newly announced slimline PS3 offers a new form factor, a higher capacity hard drive, reduced noise output and a lower price point compared to the current system. There has to be a catch, right? For Sony, there might be."

"Today's episode of a general interest TV Tokyo news program called Pipitto! Keizai Koukishin covered Sony's Gamescom announcement of the new PS3 system. To help understand Sony's pricing strategy, the program turned to an analyst at Daiwa Institute of Research."

"The slide lists the material cost for the PS3 as ¥40,000. The announcer explains that a price drop to ¥29,800 means that Sony's losses will increase with each system they sell. However, if they increase their sales, the material cost will gradually go down, and so too will the losses."

Recreating the thread since the first one got locked for the title.

I don't know about this though. It kinda goes against what Sony is saying.

Still sold at a loss, not a big surprise, the production cost isn't falling rapidly enough to keep up with price drops. No wonder seeing as how they've effectively halved the price in 2.5-3 years.

They've alreay admit the loss for the console itself but said with periphrials and sw it would be profitable. I'm not sure the loss is as big as 100 dollars. And the've effectivly been able to reduce production by 70%... so why wouldn't they be able to half the price?

not sure about the number either if we are to believe what Sony said. yes they said they lose money on hardware, but it would be tough to be profitable overall if you're losing $100 per system. With that said the source is actually pretty good.

Just looked... that's pretty old news unless he said it again recently.

40,000 yen - 29,000 yen = 10,000 yen = $100

Hehe JEDE:

 http://www.vgchartz.com/forum/post.php?id=2519653

btw thanks for remaking this without the flamebait title.

there's a lot of things wrong in that thread, but please don't start a flame war in here.

This seems pretty risky/desperate for Sony. They're assuming that software sales, peripherals, etc. will make up for their losses. Even if that's the case, any profit will probably be relatively short-lived, and they'll likely go back to posting a net loss when Natal comes out or when the 360 and/or Wii get(s) a price drop.

Damn, the PS3's just a financial black hole for Sony, isn't it?

Slime - I still think that's wrong. I don't see how Sony only reduced the cost a measly 50 dollars through all their revisions. Smaller chips (RSX and Cell) smaller case. No chrome face plate. No chrome PLAYSTATION 3. No shiny finish. Push buttons.