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bumidan said:
DMeisterJ said:
I'm dumb. I meant PSP.

There's only 2 bucks made off of each PSP sold? Or each PSP game sold?

 

DMeister, the PSP Hardware assumed $2(*) net profit.

The total for 2 years ending Mar 2008 = 22.25 million units of PSP

So if you allocate a NET PROFIT of $10(*) per PSP, then the total profit for the 2 years is $222.5(*) million as opposed to $44.5(*) million in the original analysis.

Therefore, the difference of $178(*) million should be allocated as a LOSS somewhere else, most likely PS3 hardware - increasing the OVERALL TOTAL LOSS of the PS3.

 

I think $10 per PSP is more reasonable. Like Fishy said there are a lot of other costs noy (yet) in your projection, like marketing etc. It is also reasonable that part of the PS3 R&D costs hve been spread over several years before and after the launch.

Edit: licensing fee for PS3 titles is said to be quite high, say $8. PSP probably lower, I expect around $4-5