Game_boy said:
No. I estimate that they lose at least $200 on each 40GB and maybe $150 on each 80GB sold, based on aggressive cost reduction since the $810 estimate at launch by iSuppli. You know the losses we saw at Sony's last financial report? That was better than expected. If the PS3 had sold what had been expected of it, the losses would have been higher. The downside is that Sony may never enter the black, especially when Xbox 360 and Wii pass $199 as is inevitable so the PS3's price has to be dropped again. |
What exactly is your estimate based on? Would you care to share exactly how you are coming up with that number even though you have no idea exactly what Sony pays to either make or purchase components that go into the PS3?
I do believe that both the 40 and 80gb PS3's are losing money, but not near as much as you suspect it is. I think that the 40gb is losing in the 60-100 per unit range and the 80gb is losing closer to 25-60 USD. So many of those who like to talk down about Sony and how it will fail and never make a profit on it forget that many video game consoles rarely make profits at all in the early stages of it's lifetime. The Wii is an exception to the rule. And I don't think that the PS3 would be far behind the 360 in dropping the prices to the $199 price point. Depending on how agressive Sony wants to be, they could even beat MS to the punch at that price.
When using state of the art and top of the line products, the costs to manufacture drop considerably in the early stages of it's life and can drop faster and further then other consoles because of the manufacturing costs dropping with improved production techniques.
My pokemon brings all the nerds to the yard. And they're like, "You wanna trade cards?" Damn right, I wanna trade cards. I'll trade this, but not my charizard.
