PS3 a faster money sink than the Xbox? I can see why no price cuts soon.

[bumidan]

I would like to join this discussion. Please refer to my thread:
http://www.vgchartz.com/forum/thread.php?id=30391&start=-0

Repost:
I want to get your opinion on the original numbers:

PS2 hardware - I assumed they make $15 per unit - do you have a different number in mind?
PSP hardware - I assumed they also make $15 per unit
PS3 - what is the hardware loss? I assumed $306

PS2 software - I assume they make $8 per unit
PSP software - I assume they make $8 per unit
PS3 software - ???

Basically, we have to assume 5 variable to come up with the 6th variable.
Based on those assumptions, then PS3 software LOST
$8.8 per unit on 57.9 million units sold
or a TOTAL of $508 million dollars JUST ON PS3 SOFTWARE ALONE.

Does that make sense? I ask you guys because I am not very familiar with Sony's numbers.

On the flip side, if you assume PS3 software makes money,
even at a modest $5 per unit or a total of $288 million

then

PS3 hardware lost an average of about $390 PER UNIT

Which is a likelier scenario in your opinion?

Sony Games LOSS - FY ending Mar 200 - $1.245 Billion USD

When replying, please let me know your assumptions of 5 variables, then the 6th variable can be calculated.
I can recalculate - very simply - using excel

NUMBERS FOR YOUR REFERENCE:

OPERATING INCOME
Unit Sales Unit Income Income
Hardware (Millions)
PS2 13.73 15 205,950,000
PSP 13.89 15 208,350,000
PS3 9.24 -306 (2,827,440,000)
Software
PS2 154 8 1,232,000,000
PSP 55.5 8 444,000,000
PS3 57.9 (8.77) (507,860,000)

(1,245,000,000)- THIS NUMBER IS CONSTANT