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Forums - Sales Discussion - Interesting PS3 cost-of-goods news...

it costs $240 to manufacture, that doesn't exactly mean it only costs $240 per PS3, there are other costs to account for such as shipping.



 

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^ With the possibility of PS2 backwards compatibility on all machines



makingmusic476 said:
Lostplanet22 said:
You guys forget something. This is only the PS3. When you buy a PS3 you get more than a PS3. Dualshock 3, game name it those are also costs that this article not talkes about.

The controller and cables cost less than $10 total to manufacture.  They're a negligible cost.

Don't forget games.  And a neglible cost =p? That is 10 million cost with every million PS3's sold.



 

Oh yes i forgot about the software emulation for the Emotion Enginehas been patented. And for the guy who said Wii then Xbox, im not talking about sales. Im talking about overall which one will be more dominant. What does M$ have for my dusty Xbox?



kowenicki said:
The numbers dont add up... so they cost £146 and they sell (in the UK) for £299... thats £153 profit per console less dealer share? thats a huge profit margin..... I doubt the last quarters figures would have been so dire if this was true.

that's what I said just a bit ago... it costs that to manufacture, with no other costs factored into that number. The cost to manufacture isn't the only cost that Sony has per Ps3, they also have to pay for shipping, R&D, advertising, etc.



 

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kowenicki said:
And didn't Howard Stringer himself say, very very recently, a price cut would mean selling at a loss?

Something like that. I couldn't tell if he was saying that a price cut would mean taking a loss, or if he meant they are already selling at a loss.



Fuzzy_Slipperz said:

Oh yes i forgot about the software emulation for the Emotion Enginehas been patented. And for the guy who said Wii then Xbox, im not talking about sales. Im talking about overall which one will be more dominant. What does M$ have for my dusty Xbox?

More dominant, what the hell does that even mean?

As for your dusty Xbox, a duster/cloth should fix that right up. Also, open a few windows and air out your room, all electronics would be getting dusty, regardless of use (unless it's an electronic duster), and that's not good for any of them.



The quarterly reports were from April to June... so let's say in June they reached 70% reduction in costs it wouldn't make a difference to the past.

Most of the PS3 they were selling were made before that and were being sold at a loss.



People are not speculating enough.

The 70% price reduction is for the slim model!!!



                            

Oops. I tried to point out that even if it was a linear drop from in manufacturing costs they could still be in the red selling the PS3s for the quarter.

And I was responding to someone who said that they should have earned more in the last quarterly if they were earning money on every console sold.