PS3 profitability -- Breaking down Kaz' statement

[greenmedic88]

Xxain 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.

ah..I see, so theres is a probable chance they are profiting?......Why is this such a popular topic on a gaming forum???

The official statement is that SCE is still taking a loss (no word on how much), regardless of how small it may be, on every PS3 slim sold.

As it's already been pointed out, even if the production cost was under $300, they'd still be losing money on each unit sold after factoring in distro costs, packaging, in box accessories, retailer cut, etc.

I'd say hardware profitability of the PS3 is such a hot topic because it was well documented that despite being the most expensive console ever sold by a major (sorry 3DO, SNK) platform developer, SCE was still losing well over $200 on every unit at retail.

That bit of information in turn had many declaring the PS3 would take SCE out of the console business, a notion that some are still clinging to for whatever personal reasons three years later.