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bumidan on 25 July 2008
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Loud_Hot_White_Box said:

bumidan said:

 

 

From the previous threads, the loss per console for the PS3 for FY ending Mar 2008 was $210.50(*) . This was a $270(*) per unit cost reduction from the previous FY.

 

 

 

What the hell does that even mean?  (I don't need the definition of the economic terms, I need the sentences explained to me, and how they are supposed to relate to one another.)

Loud_Hot_White

To explain - the numbers we used were:

PS3 Hardware

Net Profit FY End Mar 2007 = ($481.50)(*) LOSS PER UNIT

Net Profit FY End Mar 2008 = ($210.50)(*) LOSS PER UNIT

Net Profit FY End Mar 2009 = ($60)(*) LOSS PER UNIT

Keep in mind that Loss Per Unit is the NET Loss - taking into account all other costs, not just component costs.

Also, loss per unit decreases because the fixed costs are spread out over more units sold, as well as reduced unit production costs.

Hope that explains it. 

If you are unsure why those numbers were used, please check out my previous thread explaining how those numbers were derived.  It's the New and Improved Sony Analysis thread.  Just check my post history as I am too lazy to look it up. 

Thanks.