SONY FY END MAR 2009 – PROJECTIONS – PS3 STILL LOSING MONEY BUT DIVISION PROFITABLE

[Nidan]

bumidan said:

PS3 Hardware

 

Sony stated that they will ship/sell 10 million consoles this fiscal year.  Last FY ending Mar 2008, they have already shipped 9.24 million consoles.  I am fairly optimistic that they will beat those numbers.

 

Therefore for my projections, I will use a figure of 11(*) million consoles.

 

From the previous threads, the loss per console for the PS3 for FY ending Mar 2008 was $210.50(*) .  This was a $270(*) per unit cost reduction from the previous FY.

 

With more cost reductions, I estimate that another $150(*) of cost reductions and efficiencies will be shaved off from the hardware.  I will be optimistic and use an average for the whole year of a NET LOSS of $60(*) per console. 

 

PS3 Hardware = 11(*) million x ($60)(*) loss = LOSS OF $660(*) million dollars

 

I find it hard to believe this estimate, Where are they getting this cost reduction from?

I could think of only 1 area which may impact slightly on the price "blue LED"

They would have so many cost increases this year. like

- cost of copper and steel "increased"

-Price of Transport "increased"

- price of labour "increased" although still a small cost in the products total cost.

real price reductions come from redesign, where they use one IC instead of many discrete parts. Thats a hell of a lot of squezing the suppliers to get 150 dollar price reduction after the previous one.

I would estimate $50-$75 price reduction only.