Bboid on 14 November 2008
| papflesje said: Now with the cheaper parts, blu-ray diodes being far cheaper they are almost close to breaking even on the $399 pricepoint. (about $475-525 to produce now) I don't know about you but losing at least 75$ per console isn't close to breaking even to me. It still means that a price cut would still send them into a loss, unless they slash costs by some 150 dollars (if taking into consideration your numbers). |
$75 is not much in the gaming industry. Very rarely do you have a console that makes money off of the actual sale of the hardware itself(Wii is one of the extraordinary exceptions to this.) Considering Sony's direct competition is losing at least $100 per console sold (pro model which most closely competes) it is not a bad loss. With the cash flow from software sales for both producers, they are making a steady profit in the market now and an even larger profit if you ignore r/d costs that are incurred.
