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DJjazzyGETH said:

While I doubt it's true anymore, I'm sure at launch any profit Sony was making on hardware itself was probably razer thin. For all players involved (Sony & retail) selling the consoles themselves isn't nearly as profitable or important as the software and subscriptions, which is probably one of the main reasons Sony made PS+ mandatory for multiplayer. If they can assume >50% of PS4 buyers will add an extra $50-$60 to their purchase, especially on something Sony doesn't have to manufacture, well then there goes any question of PS4's profitability. Throw in a couple game sales and each PS4 is a healthy, profit-making machine.

So it's not out of the realm of possibility for Sony to be making very little on each PS4 sold, it doesn't matter all that much. Though I agree nowadays thanks to cheaper parts and a cheaper slim model, they probably don't spend as much on hardware as they used to.

Yes at launch sony wasn't making more than $20 on each PS4 sold. Probably even a little less.

But with every PS4 revision (and before the slim there were already 3 SKUs releasesed 1000/1100/1200) the overall cost of manufacturing gets cheaper. But sony left the price as is which was mostly due to how welll it was selling. 

As it stands right now, sony could just as easily be selling the PS4 for as little as $199 on the current sku and still be making a profit of around $5-$10. But why do that now when they can be making as much as $30-$40 on each console sold? By this fall though that will change. Sony doesn't have any new hardware to push. So they are gonna go hard on pushing what the have on the market. 

A $199 PS4 will make for a very hot holiday item this fall..... and thats not even factoring that it would come with a bundled first party game or two. Any third party bundle would go for around $220-$250 this holiday.