binary solo said:
Plaupius said:
No, no, no. The question was specifically about hardware, and the result is clear. On top of the hardware costs, there are a LOT of other costs that the PS division (forgot what it is called now, networked entertainment and devices or something) has to cover. Companies need a healthy sales margin to cover those costs. Of course, the margin varies for each company, but to give you an idea one manufacturing company that I know well has a sales margin around 50%, meaning that if a product costs 100€ to produce, they will sell it for 200€. That will give them a healthy EBIT margin, but nothing extraordinary.
So, my point is: if Sony at some point starts to profit from the hardware, that DOES NOT mean a price cut is imminent.
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Just a small point: 50% sales margin on an item with a 100€ manufacturing cost is 50€.
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No, it is not, because in company financials the margins are calculated "backwards" from the revenue. So, if you sell your product for 200€ to your distribution channel, and it costs you 100€ to make, you have a sales margin of 50%. That is different from the usual way of calculating the margins of a distribution channel, where each step may take for example 30% margin which is added to the price at each step.
