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JEDE3 said:

Over the last few days there have been many skeptics about the report about PS3 cutting 70% from manufacturing. Now... these people are most likely they same ones who were skeptic about the isupply report when they said it only cost Sony $450 to manufacture a PS3 back in December. When that isupply article came out so many people were shouting "IMPOSSIBLE!" "Look at Sony's financials!" "They have to at least be losing $100 per console still!" a couple months later... Sony basically confirms it's even less than that. I think it's kinda funny people are still shouting impossible. People were so quick in claiming the Ps3 is the sole purpose of Sony's losses. Now in hindsight we are able to see things a little more clearly. Post E3 we can now see what Sony has been doing with it's money. On top of Ps3 losses there has been 2 PSP revisions in a year, 1 Ps3 revision, a PS wand, and I'm comfortable in saying they are in early stages of PS4 and PSP2... hell, the same people claiming it impossible are most likely the same people who are claiming 2011 new console... That would mean they have to almost be done with R&D to be able to announce it at E3 next year. So pick and chose naysayers. Is there a new console incoming 2011 or is it all the Ps3's fault for Sony's losses.

 



You're just guessing. You mean all the billion Dollar losses have in fact been due to R&D investments including PSP2 and PS4?

I wonder how come you are the only one who has suggested this on VGC. NJ5 has analyzed this topic for ages, but never in those threads have future R&D costs have been claimed to be significant for Sony Gaming Divison losses.

And what happened with the 10 year plan?

JEDE3 said:

 

So, Sony went from $840 - $420 in 2 years. We need to find $420 worth of cuts. Since then what have they done to cut the cost? One of the most significant changes that were made was taking out the Ps2 chip set. How much does it cost to manufacture a Ps2? I don't know. But at the time they made this move they were selling the Ps2 at $150. The Ps3 only had a few components of the Ps2. It didn't have the controller, the mobo, the power supply, the fans, the case. Also, now the Ps2 is selling at $99. After you cut retailers margin and Sony's profit margin you are most likely looking at $80 to manufacture a PS2. I think it's fair to say that Sony saved $150 taking out the card slot, the 2 chips, and the 2 USB ports.

 

How did you deduct the $150 PS3 savings from all that PS2 babbling??