Sony: "Unlike PS3, we are not planning a major loss with the launch of PS4"

[drkohler]

Captain_Tom said:

Toddifer said:
So they aren't planning a 'major' loss, which obviously means they may still take a smaller loss on the PS4 initially, which I really wouldn't find surprising. I can understand selling a product below cost, as long as it's not an enormous amount below cost. I'm guessing PS4 will launch at $499 and they'll be taking a $30-$50 loss on each console, which is still significantly below the loss they were taking with the PS3 at launch, I belie

It is projected to only cost around $450-$500 to make.  Expect a $400-$450 price point (Depending on if MS does end up selling their console for a rediculous $500).

So in your small and very naive world, you sell your goods at (or more precisely, below) manufacturing costs?

Toddifer is quite right in his assessment, over the long run. However, the initial batches of consoles usually carry a much higher loss, depending on the planned time span (and batch size) the manufacturers want to recoup costs. My estimate is that initial PS4s carry a production cost around $550-$600 (always keep in mind these complex SoC are completely new and untested so there is quite a risk of extremely low initial yields).

I'm really tired of those people here who say "anything over $299/$399 is too much". For both XBox and PS4, a price of $600 would be more than fair (considering a similarly equipped PC costs you more).