Will Ps3 Marketshare Fall Below 21%.

[johnsobas]

hsrob said:

vthokiesrmoo said:

i edited my post!

I DO believe its market share will drop below 20%. And yes i do realize that they are about to break even on the costs of producing to the revenue of selling each console. Even if this is true Sony has stated it costed them about $875,000,000 USD to develop the ps3.

If they made an average of $100 on each PS3 over its lifespan (which is even probably less than they will end up making per console sold) they would need to sell 8.75 million units over its remaining lifespan to negate the costs of development and make a profit. Sony will most definitely make a profit off the PS3, it would be against business ethics to take on an investment with a negative return because you are not benefitting the shareholders of the company.

Sorry dude, i don't mean to pick but 875 million is the tip of the iceberg.  Sony have already sold twenty million consoles with anywhere from 50-300 dollars lost per console.  Even most conservative estimates put total losses for the PS3 at about 3 billion all things considered.  Plus there are going to be many more systems sold before they go from $50 lost per console to $100 profit per console.  Cost cutting is only achieved by continual refinement of the manufacturing process which can only be achieved by continuous manufacturing.

the absolute minimum you can put ps3 losses at are 3.5 billion, that is without taking into consideration any profit made on PS2 and PSP hardware and software.