iSuppli: Teardown of Sony's PlayStation 3

[Bitmap Frogs]

Marty8370 said:

Bitmap Frogs said:

Marty8370 said:

Bitmap Frogs said:

mysticD said:

Wait didn't Dkholer went to MS forum with "insider" information that PS3 only cost $350.00 to build.

http://www.vgchartz.com/forum/thread.php?id=53240&page=4

And Groucho call us bunch of ignorances when we ask him to provide something to back up his claim.

So after 2 years Sony still lost $50.00 per console... it make sense why they would put out the 160GB sku because with that Sku at least they are breaking even or even make some money.

 

I was about to bump that thread with this...

For those casting shadow upon iSupply (DMJ, I'm looking at you!) - predicting sales trends is one thing, tearing down a piece of electronics and asking manufacturers for volume pricing on components are two different things.

 

For starters iSupply estimates rough costs, so they could be more or less. Depending how old there info is.

 

With a 10% margin of error, Sony is still losing money on every console sold. Remember manufacturing, packaging and shipping aren't included (iSupply) only estimates the bill of materials on the device itself. Also, Sony sells the console to stores for less than the retail price (obviously) and in some places (like the whole EU) there are also sales-tax bumping up the retail price.

 

Yes, but in different market the margins can be better. So Sony might not be losing on every PS3 console made.

 

 

Oh boy... so now it's come down to third world countries representing a residual amount of sales as the bastion of profitability?