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greenmedic88 on 12 November 2010
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DirtyP2002 said:


$600 PS3 sais HI!

I think every single product in this industry has the same pricing-curve. Start expensive, get cheaper later (the direct way - cut the price, or the indirect way - add more stuff).

Somehow MS is the devil if they do the exact same thing.

 

And could we PLEASE get rid of this 500 million marketing stuff? There are some things to consider:

  • MS can afford this and Kinect alone will amortise this
  • It is a budget for a longer period of time
  • It is not unfair business!
  • Sony has two of the mainsponsor slots for the UEFA Champions League (Bravia and Playstation 3) for years now and was the mainsponsor for the Fifa World Cup 2010 in South Africa. That is way more than 500 million USD. Somehow I never see people saying anything against it.
    I found this:

    (2) Advertising costs:

    Advertising costs included in selling, general and administrative expenses for the fiscal years ended March 31, 2007, 2008 and 2009 were 505,462 million yen, 468,674 million yen and 436,412 million yen, respectively

    http://www.wikinvest.com/stock/Sony_(SNE)/Filing/6-K/2009/F3523752

    If this is true and I am reading this correctly, 500 million is nothing. Feel free to correct me!

    •  

    The PS3 initially cost an estimated $840 to produce. They were sold at over a $200 loss per unit. 

    The Xbox 360 initially cost an estimated $550 to produce. They were sold at a $150 loss per unit. Despite inventory shortages during the debut year.