This guy is an idiot. People like to shout how Sony is "losing money" Sony knew they were going to lose at least 3 billion, upwards to 5 or 7 billion from PS3.
PS3, 60 GB cost NINE HUNDRED, 63 DOLLARS to produce. They sold it for 600$. The 20 gig cost 780$ to produce, and sold for 500$. Within first 4 months moanufacturing price came down to 800 and 700 respectively. In the first 16 weeks, PS3 sold 2 million consoles. Respectively at a 250$ to 350$ loss, so a 300$ average lose. Which is a net loss of 600 million. Again manufacturing prices never went down again till 6 months later to 750 and 650. PS3 sold another 2.5 million in that time frame. At a lose of 250$, another net loss of 750 million. A total loss of 1.35 billion dollars, and it's only on sale for 8 months.(This is a pure guess, manufacturing prices don't go down at once they go down over time, real estimates are between the mean of 1 billion to 1.4 billion loss at this time).
At the end of the first year, PS3 sold 9 million units, ALL SELLING at a loss. Even when 80 gig launched it still cost 650$ to produce. Sold for 500$. Even 60 gig was dropped everywhere to 500$.
Even microsoft sold 360 at a loss when it first came out.
It's sad people don't actually understand console companies, even now Sony is not making a profit on the 40(80 gig now) model, it is however making money on the 80(160 gig) model now. About 10$ per console.
They lost nearly, in 2 years around 3.5 billion to 4 billion dollars. This was not a mistake or due to economy, they new this was going to happen, first 2 years PS2 lost nearly 3 billion for sony, because they sold at a loss.
Right now Sony doesn't want to lose more then 4 billion though, that would be a new record for them, thus they don't want to drop price, but don't dare say it'll cripple them, it won't.
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