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slowmo said:
Alby_da_Wolf said:
slowmo said:

[...]

I wasn't aware you were privy to the actual manufacturing costs of the 360.  It is highly unlikely they are making a loss at all and certainly not considerable given the length of time since their last price cut.  In fact it is almost certain that sony are losing more money on hardware than Microsoft.

Any proof?

Other than financials showing one company in healthy profit and the other not then no.  The fact they have cut the price recently on the PS3 is suggestive though as Sony traditionally have sold the PS3 at a loss or tight margin this gen in an effort to keep pace with Nintendo and Microsoft.

Don't get me wrong, I was disagreeing only about Sony losing, I'm sure MS is profiting on XB360 more than Sony on PS3, except maybe on the craziest time limited offers, it's just that I think both are actually profiting. If Sony were willing to lose money again, it would have made a more aggressive price cut than just $50. Or PS3 could be in a limit situation, losing a little in USA, particularly with the current offers, and profiting a little in Europe, BTW this could nicely explain why Sony is happy with not closing the gap with XB360 in USA.

About true losses and profits, in case a division has a quite large profit, we can easily assume the division's most successful products profit too, and this is the case of XB360, but we know both Sony and MS include a lot of different products in many of their divisions, particularly the electronic entertainment ones, this means that when a division is losing, it's quite difficult to tell whether its most successful products are losing too or if the losses are generated by other products in the division, and this is the case of PS3.

Edit: BTW, Sony announced PS3 broke even in July 2010, this means it did it a few months before in EU and a few months later in USA. More than one year later it should at least break even at $250.



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