Profit Numbers: Nintendo, Sony (Game Segment) and Microsoft (EDD Segment)

[Alby_da_Wolf]

Bitmap Frogs said:

Alby_da_Wolf said:

Bitmap Frogs said:

Alby_da_Wolf said:

Very rough calculation: if PS3 is breaking even at $400, subtracting HDD cost, cost difference between Cell and Xenon, cost difference between BD and DVD, and all other smaller differences, do you think we get a sum smaller than $200? BD drives are quite cheap now, an 80GB HDD is cheap too, Cell has already been produced in more than 20 million units, while Xenon almost 30 million, and it's simpler, so we know is cheaper than Cell, but not enormously cheaper. OTOH the price difference between Pro and Arcade is high enough, compared to the additional equipment, to make Pro break even or even profit a little bit.

 

 

Your post is full of misconceptions.

You don't know how much all those components in the ps3 cost. Therefore you can't take that as a basis for your calculation.

In fact, you are ignoring associated costs, manufacturing costs, yields, and other unknown/unforeseen costs.

I call your whole post uninformed speculation, and I am being generous. You basically want to believe the Arcade is losing money.

Don't you know that the same thing can be said about opposed hypotheses too?

 

 

It's not me who's attempting to figure out costs on something comparing apples to oranges.

 

I never claimed to pass my rough calculation off as precise, but I don't think saying  [(Cell - Xenon) + (GPU PS3 - GPU XB360) + (BD-DVD) + 80GB HDD + (other components cost difference)] < $200 is totally unreasonable.

If you are implying that we really can't figure out for sure whether XB360 is profiting or losing, I can agree, we can't indeed, as (Edit) I based my rough estimate only on cost difference, so if PS3 cost is down enough to make it profitable at $400, chances are that $200 XB360 arcade is too. If on the contrary you are saying for sure that my estimate is totally wrong, well, do a correct estimate that prove mine wrong (to prove me wrong you have to prove wrong the inequality above and prove that PS3 is breaking even or profiting). If my reasonment is only partially wrong, or simply not demonstrable, then the answer is unknown.