Grampy said:
TheBigFatJ said:
FreeTalkLive said:
TheBigFatJ said:
If Sony isn't losing any money on each PS3 sold, then how did it lose so much money last year when the PS2 and PSP were almost certainly generating significant profits. |
I guess if you factor in the money the stores make for selling the console, shipping costs, and the huge marketing budget, Sony would still be losing a lot of money. Sony may even be losing money on games because it costs more to develop games like GT 5 than Sony is making by selling games like Lair and Heavenly Sword.
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Sony makes money on PS3 games sold by third parties because they charge a fairly heafty royalty. The thing here is that the PS2 sells a lot of units and each unit has a very wide margin. The PS2 also sells a lot of software, and that's pure profit for Sony, as are third party PS3 games. The PSP is even doing well and selling some software, generating even more profit. For them to lose as much money as they did last year, the PS3 must have a very significant per-unit loss associated with it. There's no way it's zero. |
The zero figure just indicates that manufacturing cost are now the same as the retail price. That would mean effectively they are still losing money but I have no real basis from this to estimate the loss. I know that Nintendo gets to pocket about 40% of gross and I applied that as a working figure. I have no idea how to calculate net from a gross of $0 except to call it zero. Obviously though you’ll have to do a lot better than zero to fill the piggy bank.
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So they're losing ~2 billion in 2007 due to, uh, shipping? Neat. (1 billion lost oerall, 1 billion lost profit that they certainly made from the PS2+PSP).
