Sony closer to breakeven on PS3

[johnsobas]

Shoestar said:

letsdance said:

johnsobas said:

Shoestar said:
Considering each retailer makes at least $30-$50 from the sale of one console, I think sony is losing at least $80-$100 in the US. (if Boxing and controllers are included).

In the UK and Europe, Sony might be close to breaking even as in Euro, the Console would cost 268 Euros to make but sells 250-300 Euros depending on the Region.

no the margins for retailers are very small, 5-10$ max.  There are some things not included in these estimates like shipping, controllers, boxing etc. 

controllers are included at under 15 dollars.

 

Hmmm... I'm not sure about the $5-10 per console... I know for sure that on game sales it's $4-$10 depending on price and recency of the game itself. I believe that for shelf space of a console, $30 per console most suited for retailers taking in consideration the service fees involved.

 

If the controller price is included in the 'other' costs... that leaves less than $60 for the body and other electronics such as board, hdmi/ethernet ports, buttons, Sound eqs etc...

you have it backwards, software and accessories are where retailers make the money.  It's very difficult to find numbers, i did find that Nintendo had a 8$ margin for the wii at launch and that was considered high.  Retailers don't discount consoles because the margins are so thin.  If software margins were that thin retailers wouldn't buy software, because the risk is so high you would have to sell it at full price or you would lose money.