PS3 profitability -- Breaking down Kaz' statement

[NJ5]

JEDE3 said:

NJ5 said:

JEDE3 said:

I don't know, I estimated ~280 not including all that stuff. (As you can see from my previous post) 311 isn't that far off but would they be able to sell enough hardware and periphs to make up for that? What would the dollar amount be for their loss for you. Including all that stuff. And I know you wont forget to take retail cut out of the 300.

Here is why I get $311:

When the PS3 launched, 1 dollar was about 117 yen. If iSuppli's estimate of $840 in production cost was correct back then, that was:

$840 * 117 = 98,280 yen

Reduce that by 70%, and you get 29,484 yen, which is about $311.

 

How much do you think they'd be losing with everthing factored in?

If iSuppli's data is correct and the cost of the PS3 itself is $311 now, I'd be surprised if everything together cost $350 or near that... The controller, cables and shipping certainly shouldn't cost more than $40 to make, considering the controller is sold for something near that at retail.

If Sony sells it to retailers for $290, they can't lose more than $60 per unit.

The real question is whether iSuppli was correct or not, of course.