Sony Losing $36 per PS3 Slim

[binary solo]

Khuutra said:

binary solo said:
Well $299 in US dollars = $413 NZ. Current retail in NZ is $599 NZ. The difference there being $186 NZD. This means SOny are selling the PS3 here for about $134 more than what it's being sold for in the USA. Minus the $36 materials cost, and the retailer markup of $10 and we have $88 for Sony to play with before. You think the controller, shipping and distribution are $88 per console? I doubt it.

And we aren't the most expensive PS3 country in the world. I believe in US dollar terms PS3 is more expensive in Aussie.

SO yeah, Sony is already making a profit on PS3 in some countries. Just not in Japan, the USA, UK or probably the Eurozone. Sure, the biggest markets, but a profit is being made in some places.

What are importing costs like in New Zealand, though?

New Zealand eliminated pretty much all import tariffs in the 1980s. There is basically very little point in buying duty free in NZ because there is no duty any more.

However I must seek and provide some clarification. Just about every country has sales taxes of varying descriptions. IN Aussie and NZ it's called GST (goods and services tax). The retail price quoted in ads, on websites, in junk mail and on ticket prices all include GST. That means the price you see is the price you pay. When PS3 is advertised for $299, in the USA does that include or exclude sales taxes? In the EU does 299 Euros include sales taxes? How about VAT in the UK with the 245 price?

So in my above calculus I forgot the GST component which is substantial. So out of the $88 you've got to consider the 12.5% GTS which actually reduces the surplus to $13.12. Now that amount certainly doesn't cover the controller and shipping/ distribution. So I retract my earlier statement, Sony is still making a loss here.