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Forums - Sony - PS3 now turning a profit.

The Xbox Man on 14 May 2010

Thats great news & a step int he right direction. I have to wonder will the rumored price cut put them back in a loss.



    
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Alby_da_Wolf on 14 May 2010

If they started profiting in March, they most probably could afford a $50 cut next Autumn, at worst breaking even on HW, but not losing again, and an entry level price of $249 would mean that the entry level Move bundle wouldn't be too expensive, either.
Breaking even on entry level standalone PS3 and bundle with Move, while profiting a little on premium models and bundles and full priced not bundled Move and profiting as usual on games and royalties would be a very good situation for Sony, better than last Xmas. IIRC it took Sony two years to start profiting on PS2, on PS3 almost 1 year and a half more was necessary.



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ramses01 on 14 May 2010
Ping_ii said:
Slimebeast said:
Where does it say that the PS3 hardware is profitable? I fail to see it.

Here ya are:

"Gross margin for PS3 hardware turned to profit in March…  No loss on hardware at current price and current cost."

 

http://www.thesixthaxis.com/2010/05/13/sony-conference-call/

 

the link I originally have was japanese.


That quote is a little misleading.  All that means is that the weighted average price from retailers has now exceeded the COGS.  That does not mean that they are profitting at the fully loaded level.  It also means that the Euro weakness recently has probably wiped out that margin.