PS3 Manufacturing Costs

[scottie]

Max King of the Wild said:

scottie said:
I just presented two proofs as to why it must be much higher than that.

1) Judging from iSuppli estimates, sensible approximations as to reductions in cost, and the effect of the strengthening Yen, the loss will be very high.

2) If the loss was not high, SCE as a whole would be running at a significant profit

You're going to have to rebut those two points, not just say "I think ..."

PS - Perhaps this conversation would be easier if we talked in terms of Yen, instead of dollars

1. how is isupply getting their estimates? im pretty sure its from retail prices of each item. there is no other way of knowing these prices. this would alreadty factor in storage, ratail cut, ect ect on each item. i dont think it factors in bulk pricing either which only benefits sony.

2. in the month of december sony practically lost 100million dollars on HW alone only in NA do to the weak dollar. something which should be done by now.

 

I honestly don't know how iSuppli get their estimates. It clearly isn't retail because, well not all of these components are sold at retail. I don't believe you can go into the shops and buy the cell processor that powers the PS3 for example, nor the exact graphics card, nor just a PS3 case. A PS3 power supply you can buy from retail I assume, but you're buying it from Sony so that doesn't count. And I will point out I was only talking about iSuppli because others were, not because I'm a fan of the place. So I do think this price includes bulk discounts.

 

I also am certain it does not include the costs of manufacturing the PS3 from components, nor of shipping it to a retailer, nor does it include the retailer taking a cut. iSuppli always has presented it as the price to buy the individual components.

 

The dollar is still very weak, and the yen very strong. Much more so than when the PS3 first came out