wiifm on 25 January 2008
@SlorgNet
If you add VAT, import taxes to EU, distribution, marketing budget, already wasted money on development and ongoing development costs for e.g. new SKUs, PS3 is anything but breaking even .....
That 30% annual cost reduction might be the case for some components but for sure not in general.
According to your calculation, $472 manufacturing costs would be around 79 percent of the EUR retail price which sounds anything but healthy ....
They can only break even if they sell massive amounts of software imho, that's where the profit is.
