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Roondar said:
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?

 Good point...  if the PS3 costs 800$ to make, Sony sells the system to the retailers for aprox 585$, a price drop of 100$ would actually cost Sony around 315$+ for each console they sell at 500$.  Ugh... this money losing scheme Sony thought up to push the PS3 was just all around dumb.  It would have only worked if the PS3 was in such high demand, for consoles and games that they'd both be flying off the shelves.  Considering there has been few too many games to move stock, this has been a huge problem.  Hopefully Sony can get this under control sooner rather then later.  I also hope quality is not the first thing to go on the PS3, as of right now it's got a good thing going in that department.



Prepare for termination! It is the only logical thing to do, for I am only loyal to Megatron.