PS3 profitability -- Breaking down Kaz' statement

[greenmedic88]

NJ5 said:

greenmedic88 said:

Xxain said:
guys..do we know how much it cost to make a Slim and Phat yet at this moment???...

There is no definitive answer. Everything has been based upon estimates, with a common one using the often quoted $840 initial production cost of the 60GB unit as the starting point for the "near 70%" reduction in per unit production cost quoted recently by SCE, which would put the production cost at about $252.

Assuming it isn't, either that $840 initial estimate was too low, or the "near 70%" reduction could in fact be something closer to 65% or even 60% which would bring current production cost to $294-336.

As one can see, it really doesn't take much to shift that current production cost number.

 

I believe the 70% production cost reduction refers to the cost in Yen, in which case I calculated the production cost would be at least $311 now (which doesn't count the controllers, boxing, manuals, shipment and things like that).

 

The cost in Yen would explain it while keeping both the "near 70%" statement and an initial production cost of about $840.

No need to include cost of controllers, packaging, print materials, distro costs, retailer cut etc. since those aren't included in unit production costs. They do have to be included, on the other hand, once a hardware manufacturer starts to claim that they are making a profit on every unit sold.

Even if SCE was producing them for under $300, they'd still be losing money on every unit sold due to included accessories, packaging, distro costs, retailer cut, etc.