Sony Earnings

[Reasonable]

rocketpig said:

Kasz216 said:

rocketpig said:

With more evidence appearing that Sony actually is coming close to breaking even on the PS3, one has to ask:

Exactly how damned much is Nintendo making on every Wii sold? How much is MS making on each 360?

Nintendo must be making a boatload on each Wii and MS also has to be doing pretty well for themselves.

 

 I'm not so sure.  I mean the PS3 has a lot farther to fall since the tech is more advanced.  So it's decreases in cost are going to be a lot more signficant then the 360's decreases in cost.

The Wii technology... i'm not even sure how much cheaper it can get. 

Most tech price cuts come from shrinking the process and that's available to MS and Nintendo just as much as it is Sony. Sony does have the advantage of Blu-ray dropping though. Both Ninty and MS rely on pretty cheap optical tech already.

All 3 will continue to drive reductions in production costs.  However Sony should drive the fastest and deepest reductions as they have by far the greatest manufacturing experience to do so.  Nintendo shouldn't be too far behind though and must be raking it in by now on each DS and Wii never mind the software... MS will trail quite a bit further behind.  As a company they have very little experience of manufacturing and while the same savings are available to them it normally takes a company in their position longer to achieve them as they are reliant on outside and sourced experience to do so.

360 has been out a while however so I wonder whether bulk of reductions they could achieve have already been realised.  Sony I suspect has the most to gain and I expect the cost of a PS3 to produce to keep falling rapidly allowing them to really get aggresive on price.  It seems to me they were foreced to market when PS3 costs were higher than they would have liked and they tried to make the best of it (with some pretty stupid public comments along the way to justify the high price tag).  Wii should also see reductions but due to the nature of its tech I doubt these will be as substantial as for PS3.

The wild card that could develop during this year is impact of format war ending in BRs favour.  Seems a lot of people are willing to pick up PS3 for movies, and while its way too early for anything drastic player sales for movies are way beyond console sales... so if PS3 becomes the BR player of choice for next few years and BR sales really pick up the implications for additional sales are interesting.  With recent announcements regarding smaller, cheaper Cells and BR diodes, etc. a slimer, cheaper PS3 in not too distant future is more than possible - making it even more desirable as both a games console and movie player.