For each PSP sold....

[jman8]

LordTheNightKnight said:

psmcx said:
i am pretty sure it is profitable for them or they wouldnt have dropped the price. The attatch rates are fine the problem is everyone is always comparing the psp to the ds.

It's not just the DS. The PS1 and PS2 also had pretty high attach rates. So the PSP is also lookd down for not living up to its heritage.

Yet to the OP, yes the PSP is sold at a profit. Even though sales have slown down, the fact that it sold so quickly at first dropped the manufacturing cost at probably a record pace for a Sony system.

 I'm guessing you probably have no idea what the attach rates were for the PS1 or 2 after two years of being on the market, so there's no way you can make the claim that it's not living up to its heritage. I know that I have no idea. The fact is PSP attach rates are about 3-4 games per system after just 2 years. PS2 attach rates are about 7 after 6.5 years. Generally attach rates increase the longer the system has been out because people have more time to buy more games. Therefore reaching 6 games per system after year 5 wouldn't be crazy. So we can say with some confidence that attach rates for the PSP are doing fine compared to earlier Playstations. 

DS attach rates are just an anomaly. We've never seen anything like it before. Why? Because they're not at all special in America or Europe. They're the same as the PSP! (which is yet another indication that PSP attach rates are solid) It's Japan that's gone totally nuts for the thing. Attach rates are over 8 games per system. 

 As for the original question: If the PSP wasn't profitable after 2 years of selling the system at the same price, the original manufacturing cost would have to have been astronomical. Or somehow the PSP's technology did not drop in price at the same rate as all other pieces of technology. Anyway, no one really knows. They are making money off software and off memory sticks and a tiny bit off UMD movies. Whenever/If a music and video download service comes out, that'll be another source of income (Station Launcher could be that service).