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Sales - The fate of the PSP - View Post

Dryden said:
Does anybody know what the PSP originally cost to manufacture?

I'm curious whether the losses on the hardware side put the platform in a hole, given the software and UMD film sales didn't take off to the levels Sony had hoped. While the platform itself has been successful by measure of its overall sales numbers, as a business the venture has probably been a bit underwhelming to Sony.

They were planning to lose money with the platform right out of the gate, but then having to drop the launch price further when Nintendo beat them with the September 20, 2004 announce by one hour -- that was another $50-$100 lopped off, depending on region and bundle.

When the business model is to sell the hardware at a loss and make up the money on software, can you really call the platform a success if the software isn't selling?

Well with Sony's rate of downsizing cost on hardware, I'm not sure if they were losing money for very long :/ but as far as R&D and such I can see your point, I'd almost be willing to bet that what little software they have sold they probably paid for it in itself already.



From 0 to KICKASS in .stupid seconds.