Roondar on 12 June 2007
Surely the PS3's are not inventoried at either $800 or $600!
I mean, the $600 retailprice also includes the cost of distribution and the margin of the retailer. Now, that either means iSupply is right and Sony was taking an even greater hit or that the iSupply numbers where/are suspect to begin with.
I'm thinking that the cost to procude a PS3 (or an Xbox 360 or Wii) is being overstated by analysts. A 15-30% margin on electronics (for the store selling it to the consumer) is not odd at all, meaning Sony would only get about $419-$510 per PS3 from their retailers to begin with. And that still doesn't add in the distribution and warehouse costs.
Or are people seriously suggesting the stores selling the PS3 do so at break even or a loss?
