I was wondering whether Sony loses a substantial amount on this version of the PS3.  The SKU has had some effect in immediately raising console sales, but its medium term effect is likely to be much smaller.  If Sony does lose a substantial amount of money on this console, then they are limiting their ability to match any Microsoft price cuts early next year.

Basically, how much does Sony lose/gain from each console, and in light of this, do you think that releasing a gimped but cheaper SKU willbe positive or negative for Sony in the long-term?

For the bottom part it will be positve for sony in the long term, come march when they will ikely cutt he price by $50 it will be at $349.99 and the 80gb will be at $449.99(with motorstorm dropping to $39.99). 65% of PS3 sales this week came from the 40gb ps3, only about 33k of the ps3;s were the 80gb.

I think they lose about $100.00 per console. But gain it back with software.

Sony claimed to be losing an unspecified ammount of money on the 40GB PS3 when they released it ...

We can't possibly know how much they're losing but I suspect that it would be somewhat similar in value to what they were losing at launch.

If they are losing anything like what they were at launch, their investors wont be happy come this quarter's reporting.

 With the current attach rates as it is, there's no way they're making it back on software.

I believe that is why Microsoft isnt playing the Price slashing game this generation like they did last time. They could theoretically kill PS3 in America for sure if they wanted to. Bundle Halo 3 and slash the Premium down to $250. Who then would get the PS3? But Microsoft realizes that real sucesss is not just market share but actually to make money

Starcraft, here is the answer you want to hear, gain nothing, lose everything. Happy?

Wow, duckaluck is a little negative today.

I fully intend to purchase a PS3 next year when Sony brings back BC to my region. So therefore it is in my personal interest for the price to come down as quickly as possible. If you had taken the time to properly read my post, you would realize that my question was framed in such a way as to inquire as to the benefits and setbacks the 40gb could bring to Sony.

If you have nothing to contribute in a constructive way in response, LEAVE.

Well, we'll actually never know what Sony has ever lost on the PS3. Even the closest estimates we've seen were based on what it'd cost to buy the individual parts (which wouldn't happen, since Sony makes some of them themselves) and that was from the launch cost.

With all of the cost-cutting measures employed so far, I'd be willing to bet that they aren't losing any more persystem now than they were at launch. And, not that I believe it, I have heard rumors that the losses on the 80GB model were significantly less than the 60GB at launch, so it's possible they've actualyl cut their losses a good deal.

 Actually, looking at COD4 and Assassin's in the other thread and the PS3 attach rate on those games is higher than the 360 per unit.