superchunk said:
I'm sure Nintendo is making a small profit. However, I think you're assuming they'll sell PS4 for a loss and that far less likely now. Viper pointed out that Sony's financial stability as a company is not the same now as it was in 2006. Vita has been argued since launch if it was at a loss or not, seems like it was a very, very small loss if any, once you include the mandatory memory. The Vita also doesn't really have a competitor power-wise, but Sony and Microsoft will probably be trying to one up each other. If you're going to tell me it infact does have a real competiror power-wise and they're phones, that would be like a console trying to compete with PCs power-wise. I highly doubt Sony will go for any signifant loss and $100 per console is significant. Your thread you linked above had a logic flaw. It showed a 285 cost of materials and a price of 299. That makes no sense. There is A LOT more to the cost of a product than just its core materials. As an example, the Vita was said to have a cost of $180, yet it sells for $250 at a very small loss or maybe small profit. That is just for a small handheld with less packaging and shipping costs associated. I did realise this a little after posting that a while back. If Sony is targeting a 35,000Y to 40,000Y product for sale, then its likely targeting a total cost of materials around 2/3rds of that. It simply won't be a "powerhouse" with these financial limitations. I've never said it will be a powerhouse, but it'll still be powerful and certainly more powerful than the Wii U. Let's go with 2/3rds on what actually goes towards to console as you said. That leaves the Wii U at 20k (small profit), and I'd say about 4k (50k) towards the gamepad. So that leaves 16k for the actual console. Now let's look at PS4, I'll go with a $50 loss to be on the safe side, that's 37.5k. 2/3rds of that is 25k. Maybe 1k goes towards the controller, leaving it at 24k for the console itself. That's a lot more room, 50% more, and a year later (small factor, I know, but still makes a small difference). |