Danyone seriously believe a PS3 $100 price cut will happen this year?

[NJ5]

Euphoria14 said:

starcraft said:

Jo21 said:
@starcraft both companies can't cut the price 100$ as today with the currect chipset.

but technology progresses and things like 45nm can same 50-100$ dollars easily.

As of a few months ago all the parts in the PS3 cost just under $450. Thats not including manufacturing and distribution. Throw in the fact that retailers pay sony less than consumers pay for a PS3, and Sony was still losing $70-$100 per PS3.

Even if they saved the equivelant of $100 because of a 45nm chipset, they are suddenly only making $30 profit a PS3 at best. You really think that in their current financial state they would drop back to losing $70 immediately after making those gains?

 

 

From what I know when my girlfriend used to work at Bestbuy was that things like gaming consoles, iPods, PC's, some brands of Televisions (namely Sony brand) are all at contracted prices. These are sold for what the retailer bought them at. The money is made from game sales and accessories.

An iPod that costs $150 was purchased by the store for $150. Ipod headphones that were sold for $30 were bought for $3.

Someone would need to provide some more info but as of now this is how I have always known it to work. Bestbuy has an employee discount that is you pay 5% above what they paid. Video games end being about $10 less while consoles do not get discounted at all. A samsung HDTV that costs $1000 you can buy for around $550-600.

That is how I got my HDTV for $300. The Sony HDTVs wouldn't get discounted because if they did, Bestbuy would be losing money.

That's not the idea I got from this article a while ago:

http://www.gamesindustry.biz/articles/wii-price-to-rise-for-uk-trade

They mention retailer margins even though the article is talking about hardware. It's probably a much smaller margin than for software and accessories though.