Sony plans on breaking even with PS3 March 2009

[Rath]

SlorgNet said:

Pk9394 said:
Can someone that is very good at accounting tell me how this is possible??? sony's gaming branch been loosing billions of dollar for 2 straight year (assume by march they'll announce another 2 billion lost) how the hell they can manage to fix their balance sheet to break even within a year????

There's no magic involved. Three reasons:

(1) massive cost reductions in the PS3 hardware (Sony is very good at this). The original units cost $800 to make, but after one year, smaller die sizes, hardware changes, and the mass production of BluRay drives, the cost has come down to $500 or less. So they're not losing more than $100 on the 40BG model, and they're breaking even on 60/80GB models.

(2) The PS3 is selling like hotcakes in Europe. The Euro is at 1.45 to the dollar, so they have a profit cushion they can use to cover losses elsewhere. (399EUR=$578).

(3) HDTV sets are finally affordable, so PS3 sales are getting a speed boost from consumers who want a top-quality BluRay player at an affordable price.

 

(1) Any evidence of such dramatic cost reductions?

(2) The PS3 isn't selling like hotcakes in Europe, its selling reasonably though. The extra cash is lost largely though taxes however.

(3) I havent seen any evidence of the speed boost?