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Forums - Sony Discussion - PS3 profitability -- Breaking down Kaz' statement

Lord Flashheart on 25 August 2009
JEDE3 said:
Lord Flashheart said:
JEDE3 said:
nordlead said:
JEDE3 said:


last time someone tried to use this logic it was when isupply came out. everyone shouted "IMPOSSIBLE!" "They must be losing at least 100 per console still!" then it turned out they were only losing 40.

Let's just say, if they are profiting on the PS3 hardware, than Sony has some very serious problems because they are failing to post any real profits in the gaming division. So take your pick.

  1. PS3 loses money on hardware and is enough to counteract almost all the other sources of income
  2. Sony has some very serious problems within the gaming devision


when have i ever said they were profitable on ps3 hw?

 

JEDE3 said:
...maybe...

....just maybe....

sony is profitable with ps3 and it really does only cost 250 - 280 to make now...

I know its a little crazy.

 

 


nothing i've said contradicts me... glad it took you a couple of hours out of your day to find it though.

Lol.

Took 2mins.

Only just got t'internet working again.

But you think that to keep you warm



Official member of the Xbox 360 Squad

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Lord Flashheart on 25 August 2009
JEDE3 said:
ymeaga1n said:
Lord Flashheart said:
JEDE3 said:
nordlead said:
JEDE3 said:


last time someone tried to use this logic it was when isupply came out. everyone shouted "IMPOSSIBLE!" "They must be losing at least 100 per console still!" then it turned out they were only losing 40.

Let's just say, if they are profiting on the PS3 hardware, than Sony has some very serious problems because they are failing to post any real profits in the gaming division. So take your pick.

  1. PS3 loses money on hardware and is enough to counteract almost all the other sources of income
  2. Sony has some very serious problems within the gaming devision


when have i ever said they were profitable on ps3 hw?

 

JEDE3 said:
...maybe...

....just maybe....

sony is profitable with ps3 and it really does only cost 250 - 280 to make now...

I know its a little crazy.

 

 

 nice ownage

Not ownage at all. Even if it costs 250 to make it still would not be profitable for Sony. Also what he isnt showing you is what thread it is. I believe it is in "How can Sony drop the price" thread.. which... if Sony is selling at 400 dollars then, yes, the Ps3 is now profitabl, and yes, they can drop it. OWNED YOUR FACE!

There's your contradiction. Sony was selling at $400 dollars when you said that. It still is isn't it?



Official member of the Xbox 360 Squad

NJ5 on 25 August 2009

As always, it pays to look closely at PR statements. This case is no exception... the first time I read his statement, I missed the "gross profit" part. Well spotted TheBigFatJ!

So what he's telling us, is that if Sony didn't have to pay its employees their salaries, AND if they could evade taxes and other overhead such as interest payments and shipments, Sony's gaming business would be profitable.

Fair enough, but that does mean they still have a long way to go to profitability, since SCE employs around 5,000 people if I recall correctly.

 



My Mario Kart Wii friend code: 2707-1866-0957

durtysouthhustlah on 25 August 2009
Lord Flashheart said:
JEDE3 said:
nordlead said:
JEDE3 said:


last time someone tried to use this logic it was when isupply came out. everyone shouted "IMPOSSIBLE!" "They must be losing at least 100 per console still!" then it turned out they were only losing 40.

Let's just say, if they are profiting on the PS3 hardware, than Sony has some very serious problems because they are failing to post any real profits in the gaming division. So take your pick.

  1. PS3 loses money on hardware and is enough to counteract almost all the other sources of income
  2. Sony has some very serious problems within the gaming devision


when have i ever said they were profitable on ps3 hw?

 

JEDE3 said:
...maybe...

....just maybe....

sony is profitable with ps3 and it really does only cost 250 - 280 to make now...

I know its a little crazy.

 

 



What, son, what? New York, New York!!!

JEDE3 on 25 August 2009

funny picture, but not nearly owned at all. I'll talk to NJ5 about this subject because he is more educated than you 3 on this subject/.



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ymeaga1n on 25 August 2009

^ LOLOL BADD OWNAGE THERE




durtysouthhustlah on 25 August 2009
JEDE3 said:
funny picture, but not nearly owned at all. I'll talk to NJ5 about this subject because he is more educated than you 3 on this subject/.

You were caught talking out of both sides of your mouth - and we are the ones own3d? Do you need meds? I know a good doctor for you. Oh - you don't like socialized healthcare, do you?

Your posts crack me up - otherwise, you'd be ignored.



What, son, what? New York, New York!!!

JEDE3 on 25 August 2009

You guys are fucking obnoxious. How is "Ps3 is profitable allows them to cut the price" Me saying "Ps3 is making a profit now"

Seriously guys, grow up. You are fucking obnoxious.



richardhutnik on 25 August 2009

Sony better not be doing this as a "Hail Mary" pass (American football term) in hopes that it will suddenly turn the tide.



greenmedic88 on 25 August 2009
Xxain said:
guys..do we know how much it cost to make a Slim and Phat yet at this moment???...

There is no definitive answer. Everything has been based upon estimates, with a common one using the often quoted $840 initial production cost of the 60GB unit as the starting point for the "near 70%" reduction in per unit production cost quoted recently by SCE, which would put the production cost at about $252.

Assuming it isn't, either that $840 initial estimate was too low, or the "near 70%" reduction could in fact be something closer to 65% or even 60% which would bring current production cost to $294-336.

As one can see, it really doesn't take much to shift that current production cost number.