Conina on 10 February 2014
| MoHasanie said: Lower manufacturing profits happen for everything but the games division had more than a 400% jump in profits. In order for your theory to make sense, Sony would have had to lower manufacturing costs of the ps3 by 400% and continue selling the same amount which is not true since the PS3s shipments were way down. |
No. If you sell something for $200 with a profit of $5 and can lower the production costs from $195 to $175, the profit would rise from $5 to $25.
In this example, the production costs were reduced by roughly 10% with a profit gain of 400%
