A $260 Loss Per PS3 For Sony?

[mztazmz]

MikeB said:

@ mztazmz

It was said that Sony was losing about $300 per PS3 at launch, that was 18 months ago.

The iSupply report only stated PS3 Components costed $850 around launch. If correct you still have to build the console and add a lot of additional marketing, R&D, support, retailer share, etc, costs.

That's why the PS3 is really an amazing deal for consumers in terms of provided technology / retail price ratio. It's really a console build for the future. If they were produced and sold as fast as the Nintendo Wii it would have put Sony in danger as a company, IMO that's an important reason why it's good that the most anticipated PS2 sequels haven't hit early within the PS3's lifecycle and Sony experimented mainly with introducing new franchises until the costs ratios are more favourable. This also provides more time to adapt legacy game engines for the new technology.

Some components drop in cost quickly, however other components drop in cost slowly.

 Very intelligent reply. must commend you on that as they are quite rare these days.

and yes it is a console built for the future. it's funny as i made a thread along time ago based on the idea that maybe sony doesn't want to sell a shitload of ps3's at huge losses. sony's gaming division would go bankrupt if say, 30 million people bought ps3's at a $300 loss per console! they realize that they'll lose money on the first few million early adopters, then try to get to a breakeven point ASAP as hardware costs go down. they knew that they would eventually get the cell down to 65nm and even 45nm, reducing costs on the cpu and in turn reducing costs on the cooling system.