Deconstructing Sony (warning: long)

[sieanr]

Diomedes1976 said: I dont need a degree in English ,I am from Spain after all and my english serves me about right for what I need it usually . What you are saying is basically what I was saying is a bad approach at the matter .Comparing the prices you can buy the components to the prices Sony is buying those same components is an absolute nonsense .Wherever you find those components they have already the incremental cost of all the intermediaries ,transport ,profit for the selling company and profit for the shop .Sony doesnt have most of those creating the console .Plus buying in big numbers the components means they receive a non-negliable discount called "rappels " that iisuply simply has ignored . That article ultimately isnt a very good one .

Well, I meant the bit about a degree in English jokingly as I remember you saying you were from Europe in another post, but sorry if it offended you. Yes, what I was saying is what you were saying, however you didn't take note that iSupplies figures were considerably lower than the retail cost, indicating that they did indeed take everything you mentioned into account. I'd like to ask you if you actually looked at their analyst on their web page, because if you did then you would see how iSupply takes all of these factors into account. You would also see that many of the components in the PS3 aren't actually made by sony, such as the RAM being provided by Samsung. Again, you don't seem to take into account that sony purchases many of the components for the PS3 from other manufacturers, and although it is considerably lower than retail cost, it's still more expensive than sony producing it themselves(which is what you assume) I will state this again just to make sure it's clear: Isupply does not take retail cost as a baseline for their analysis of the PS3. They know what many of the components cost to manufacturers is, and estimate how much IT COST SONY to produce the PS3. Also you seem to deny that the PS3 is being sold at a loss, which simply isn't true. It uses the razor and razorblades business model, and this fact is well established and acknowledged by many in the industry. And for some reason my former post is now gone. If the admins deleted it because of the English comment, then I am sorry for the misunderstanding. You could have simply edited out the offending passage as opposed to deleting the entire post.