Sony breaking even on PS3/making profit 40gb PS3

[rocketpig]

misterd said:

Darc Requiem said:
If it cost them $400 to make a 40GB PS3 they are still losing money on each unit sold. With the MSRP being $399.99, retailers probably pay around $380 for each 40GB unit they stock. Thats assumming the $400 cost estimate includes the actual manufacturing and shipping cost. If its only component costs, then the losses would be much steeper. The quarterly report from Sony will give us an indication of what the costs of the 40GB model is.

Maybe it's different for consoles, but my understaning was that about 1/3 of retail price on consumer electronics was markup. If so, stores may be paying no more than $300 for 40g console.

Retailers make virtually nothing on hardware. The reason they sell them is promises of revenue through software sales and accessories.

It's one of the reasons why so many retailers try to bundle software with hardware at launch. They want some money in the deal.