PS3 Hardware Profitable

[Solid_Snake4RD]

Grimes said:

Solid_Snake4RD said:

Grimes said:

 

Labor, marketing and other costs are in no way fixed. Especially with the problems going on at Foxconn, big changes could lie ahead.

like that nothing is fixed.these problem are thre wwith all the company and was there with SONY last year too

 

but they have one less problem and the BIGGEST ONE,PS3 losing money

Currency fluctuations can be huge, the Euro has fallen over 10% vs the yen in a couple months.

yes they will make an impact but this happens many time,atleast SONY does have to bother about PS3 losses now

Labor prices are likely to increase. The Chinese government is raising wages for factory workers. This wasn't happening last year.

http://www.businessweek.com/news/2010-06-30/chinese-provinces-raise-minimum-wages-to-curb-labor-disputes.html

The currency fluctations impact everything, PS3 is not immune. You don't actually make a profit or loss until the goods are sold. If the currency deteriorates, that means that the PS3 and everything else will bring in less money which will change profit or loss, PS3 included.

i didn't say its immune but things like this are faced by all the company Worldwide.What you aren't understanding is the SONY is not losing on the PS3 HW parts cost which previously cost alot more.

 

the labour costs are given to a company as a contract so it will be good for SONY as long as PS3 HW costs remain low