Sony loses $18 per console in US, possible profit in UK

[ChichiriMuyo]

letsdance said:

Johann said:

nightsurge said:

Johann said:

nightsurge said:

ethomaz said:
Sony has already said that from March they won't have more losses on PS3 sells for $ 299.

After that the company will begin to seek the profit per console, at least until the next price cut.

"They're hoping to cut production costs by 15 percent by March 2011."

So if it costs ~$318 to produce now (not factoring in marketing, shipping, packaging, stock, etc), I don't think they will be profitable on hardware for another 6 months or so.

How do you know it doesn't factor that? A lot of those costs are usually included.

Based on how they worded it.  They didn't say "6 cents per every dollar of PS3 revenue/PS3 sales."  They said they are losing 6 cents for every dollar of PS3 hardware sold.  That to me means they are not factoring in costs outside of the hardware alone.  I don't know this for sure, obviously, but it's a pretty common business deception tactic so it wouldn't surprise me.

So you assume they're using a deceptive tactic?

Of course I've only studied cost accounting here in my country, but here you're supposed to include stuff like stocking, packaging and even things like the electricity bill from the warehouse in the cost of manufacturing. The law actually requires it.

Of course I could be wrong and it could all be a spin. But you jump right to the assumption that it was and I think that shows your bias.

Its the same in the US. I've ran my own business here and we factored all that in for the cost too.

The thing Johann really seems to be missing here is that iSupply and WSJ released estimates.  Sony themselves haven't released exact numbers on it and never will because they aren't legally required to get that detailed about their oppoerations.