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NJ5 said:

@drkohler: You still haven't explained why your numbers look like BS considering Sony's declarations and financial results.

You came up with a $350 manufacturing cost, which would make the PS3 profitable even at a $400 price, going against Sony's CFO's declarations. You have also failed to account for such simple things as taxes in Europe's case, and repeatedly ignored all the hard evidence which was presented.

Oh my god, there comes another one... do you know the difference between manufacturing costs and production costs? Do you know how large companies project the manufacturing and distribution of mass goods (hint: I do). Do you even realize that with manufacturing costs now around $350 (-10%/+5%), a selling price of $399 _in a shop_ is obviously not generating profit (for the producer). However, selling it around $600 in Europe obviously does make a profit (no matter how high the tax is). For the 100 millionth time, Sony in last fiscal year was still selling machines from the remainder of its first generation (approx $840 manufacturing costs) and a sizable amount of its second generation (approx $620 manufacturing costs). It does _not_ take a rocket scientist to see that when shops sold those machines at $499, somebody was taking a heavy hit for every unit sold.