Sony breaking even on PS3/making profit 40gb PS3

[rocketpig]

URNotE said:

Bodhesatva said:

Like others here, this information is so shocking (has any major electronics product ever been able to half its production cost in a year? Going from 800 dollars to 400 dollars in 12 months?) that it's hard to believe, but the really puzzling thing is that the same people who made this statement -- Nikko Citigroup -- also expect SCE to lose 1.4 billion this year, and that they will "not be prosperous until late 2009."

So, if Sony isn't losing money on the consoles, why are they are apparently still going to be hemmoraghing cash for a long time to come?

well the production cost was down to 600 as of about months ago.... so they are still gonna be losing money on all the 60 and 80 gigs on the market because of the production cost at the time... the 40 gig had parts removed so thats believable plus with the cost of blu ray drives going down .. i do think that they are close to it... but i do believe they are still losing money on the 80 gb as the article states...

While they did cut costs out of the PS3, the savings can't be that substantial.

After all, the PS2 retails for only $129 including the EE (removed from 80GB & 40GB), GPU (removed from 40GB), mobo, memory, controller, advertising, etc. etc. and you know Sony is making a profit at that price.