Sony breaking even on PS3/making profit 40gb PS3

[rocketpig]

Slimebeast said:

starcraft said:

misteromar makes an interesting point. Even if the component cost estimate is accurate (and somehow I doubt it), it doesn't appear to take into account assembly and transport, which could equate to another $50 or so. On the other hand, we know that Microsoft is making a profit overall on each unit sold (though whether it is a significant enough margin to remain after their next price drop is doubtful).

Edit: The article says production cost which I assume includes assembly.  That though, in my opinion, makes the $400 figure all the more unrealistic. 

Not that I doubt it, but how do we know the X360s are profitable now? Is it your guesstimate or did you get it from a reliable source?

Well, in November of 2006, iSuppli figured that a Pro cost MS $323. That was over 14 months ago.

Besides, it is completely normal for tech prices to half in 18-24 months. The 360 is over 26 months old now. I seriously doubt the tech used in the system cost MS $800+ at launch. There isn't enough there to run the price up that high.

But cutting tech costs in half in 13 months or so? That's pretty rare and extremely uncommon. While Moore's law doesn't entirely apply to pricing, the graphs are very similar.

It also doesn't help when the President of SCE is talking about breaking even as far away as 15 months from now. He didn't even guarantee it, just hoped that it would happen. That's not very promising.