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jarrod on 05 March 2010
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Wlakiz said:
jarrod said:
Wlakiz said:
jarrod said:
Wlakiz said:

Its called investment. Sony put money into PS3, with hopes that Ps3 sales will eventually break even and potentially create profit. They are currently losing apprx $18 per console, so the break even point is coming pretty soon.

$18 per console =/= six cents per dollar overall

The $299 SKU in the US loses much more than $18...

its 6cents per dollar.

 

0.06 * 299 = $17.94 /console

$299 isn't the only pricepoint.  It's 6 cents per dollar OVERALL for all hardware.  Since production costs between the different SKUs are negligible (though shipping probably factors in moreso for NA/EU) that means it loses less on higher pricepoints, more on lower pricepoints.  $299 is the lowest pricepoint worldwide (by a good margin), it's going to lose MUCH MORE than six cents on the dollar.

Doesn't matter, they calculate the 6cents/dollar overall based on how many hardware they ship. For example, if they ship 100 120gb SKU and a 100 250gb SKU, they lose 6cent/dollar for this entire shipment. Thus, assuming all 200 hardware gets sold, they lose ~$18/120gb slim and $21/250gb slim. I guess you can further average it out to be $19.5/console, of course thats also with the assumption that they ship equal numbers of 250gb/120gb SKU.

Okay... now factor in the highest major pricepoint worldwide (EU 250GB) sells for the equivalent of ~$477 USD.  That's the problem, 6 cents on the dollar is an aggregate, and applying it directly to just one SKU or region is going to wildly skew the results and obfuscate the loss.  And that's even before we can get into actual allotments of SKUs and pricepoints.

Also, your math doesn't even make sense for if we assume equal shipments and 6c/$ loss US only.  The 250GB and 120GB have essentially the same production cost (larger platter HDDs bring a neglibile parts price increase, maybe a dollar at most)... yet you're saying production cost on the 120GB would be ~$278 and the 250GB would be ~$329.  That's pretty much impossible.