| ZyroXZ2 said: Because cost of production always goes down over time. |
That's not really correct. It depends on the material costs, transportation costs, storage costs, etc. For example, If they only made 10'000 PS3s per quarter, making 10'000 cell processors for it would cost considerably more (per unit). It's an optimisation process between ordering material for x units, manufacturing y units, selling z units, etc..can become very complicated.
The main reasons for the rather large profit in the division have largely been mentioned: reduced r&d costs, not reducing PS3 prices, PS4 sold close to manufacturing costs, more online revenue. Let's not forget that MS was doing all the advertising for the PS4. The way MS floundered with their pr, and 180ed for months, saved a lot of advertising money for Sony....
