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Chark said:
Andrespetmonkey said:
The components in the Vita are estimated to cost around $160 (which doesn't include the costs of putting the parts together btw), now add manufacturing costs, the retailers cut, the shipping costs etc.and that price goes up quite a bit. And that's just the cost on single units. For the system as a whole you've got the R&D cost, which is huge (new OS + mass produced OLED screens added to this cost greatly I imagine), marketing and licensing. 

Kaz Hirai himself said that the Vita will be profitable in 3 years. 


I understand the additional costs on top of the $160. The difficulty is in determining the extra costs. With room for $90 to $140 to make up those costs why wouldn't Vita be selling at a profit? To compare, the 3DS is confirmed selling at a loss where it has $70 of room. If the Vita was selling at a loss then the 3DS is selling at atleast a $70 loss. Now this is assumng both Nintendo and Sony have exact costs to bring their consoles to consumers, they are most likely the same and if not very similar. Do you believe the 3DS is selling at such a great loss? How could they regain profitabilty any time soon if so?

The interview with Kaz is exactly what I was refering to as being misinformation. Kaz said that they exoect the Vita to be profitable in the body of Vita sales after 3 years. Which means that it will reach return on investment then, it has nothing to do with individual hardware sales. Return on investment is where R&D costs are applied, please do not attempt to misconstrue them with the additional costs on top of the $160.

The $160 is for the wifi model, $90 would have to pay for assembly, the frame, manufacturing of parts (I guess this could include assemply and frame), the retailers cut, the shipping costs and the packaging. $90 does not seem like enough to pay for this. If Nintendo is selling at a loss with $70, as you said, then I'd imagine the Vita will be selling at a loss as well with $90 set aside for everything. And the $160 component list could be bogus for all we know, it wasn't official. I did find a different list showing more parts, I think it was official but it didn't have prices, I'll try to dig it up somehow. So maybe the 3G version is making money on each unit sold, but I doubt the wifi model is.

Sorry for the misunderstanding about R&D costs, but I did seperate those costs from the cost of single units. And it still counts, it'll be a while until PS vita makes up for those costs, it's still part of the price.