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Rugger08 said:
wiifm said:
@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.



 That doesn't even take into account retailer profit. Best Buy is probably making $50 to $100 of profit on each console sold.

@ dbot

The reason nobody cares about PS2 sales is because in 2 years Sony won't be selling more than a couple hundred thousand PS2 a year and no new software will come out. PS2 sales does not shape the future of console gaming because developers are not thinking about people who own ps2 when they are deciding what games to make. Once PS2 is no longer selling new games, Sony will have tiny market share and will be in big trouble. 

 

So we should ignore PS2 sales now based upon what you think will happen 2 years from now?  Let's focus the discussion on what is known.  The PS2 is the number 2 selling console and Sony sold the most consoles in 2007.  The numbers do not lie.  If you believe vgchartz.

 



Thanks for the input, Jeff.