Manufacturing the PS3...............

[papflesje]

Bboid said:

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.

 

 

The numbers that have shown up here would suggest that the xbox (no matter which model) is doing pretty good compared to the PS3, concerning price-profit-loss actually.

And 75 dollars in itself may not be much but multiply that with the 200,000 sold this week alone, and you need (not sure what the royalty per game is) quite a lot of games sold per console actually, and judging their attach rate, they're not doing that.