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Forums - Sony - How much is sony making off the ps3 now

joeorc on 21 May 2010
nightsurge said:
joeorc said:
Xbbjf9s said:
averyblund said:
Those are teardown prices, they don't include packaging, R&D, transport, or marketing. if a price-cut happens I don't think things will turn around until sometime in 2011.

Between the 360 RRoD and PS3 build-cost this is gonna be a generation that MS and Sony are going to wish they could forget. Neither will exit it having made a cent it seems. How they managed to mess it up is beyond me though.


RROD was that bad for MS?

it cost microsoft over 1.8 billion total sofar since 2007, which is not that bad over all with Microsoft fixing the problem, it may have cost them more if they had not done what they did.

Isn't that the total losses for the 360?  Not just RRoD.

nope that is the total to date on the RROD. which like i stated is not bad if you consider the number of faulted system's that they did have which was 11.6 million. by robbie bach's statement back in 2007

example:

Xbox Division Posts $1.9 Billion Operating Loss for Fiscal 2007.

$1.2 billion of that was from the fourth quarter alone when Microsoft owned up to the Red Ring of Death issues

Microsoft set aside 1.8 billion for such of these repairs. it was already spent.



I AM BOLO

100% lover "nothing else matter's" after that...

ps:

Proud psOne/2/3/p owner.  I survived Aplcalyps3 and all I got was this lousy Signature.

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nightsurge on 21 May 2010
joeorc said:
nightsurge said:
joeorc said:
Xbbjf9s said:
averyblund said:
Those are teardown prices, they don't include packaging, R&D, transport, or marketing. if a price-cut happens I don't think things will turn around until sometime in 2011.

Between the 360 RRoD and PS3 build-cost this is gonna be a generation that MS and Sony are going to wish they could forget. Neither will exit it having made a cent it seems. How they managed to mess it up is beyond me though.


RROD was that bad for MS?

it cost microsoft over 1.8 billion total sofar since 2007, which is not that bad over all with Microsoft fixing the problem, it may have cost them more if they had not done what they did.

Isn't that the total losses for the 360?  Not just RRoD.

nope that is the total to date on the RROD. which like i stated is not bad if you consider the number of faulted system's that they did have which was 11.6 million.

Where did you get that number then? Also, where did you get the number for the total systems they have repaired?  Because that sounds almost exactly what the total losses on 360 were.  RRoD was just 1 Billion of it.



ironman on 21 May 2010
badgenome said:
42.

The meaning of life??? Amazing, I guess the PS3 really does do everything.



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Kynes on 21 May 2010

It's really making money? The financial results don't say so.



binary solo on 21 May 2010
yum123 said:
its under $10 they said they hope to make double digit profit by the end of the year so that implies there only makinfg very small amounts and if you think theres a price cut coming get real why would sony even think a bout that if they just started making profit there wont be a price cut until at least holidays 2011

A projected 15 million PS3's sold (shipped) between March 2010 and March 2011 says otherwise. No way Sony can do 2 million better than last FY holding the same price, esp if/when 360 drops in price this year.



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gamings_best on 21 May 2010
badgenome said:
42.

LoL I get it........ grabs towel



joeorc on 21 May 2010
nightsurge said:
joeorc said:
nightsurge said:
joeorc said:
Xbbjf9s said:
averyblund said:
Those are teardown prices, they don't include packaging, R&D, transport, or marketing. if a price-cut happens I don't think things will turn around until sometime in 2011.

Between the 360 RRoD and PS3 build-cost this is gonna be a generation that MS and Sony are going to wish they could forget. Neither will exit it having made a cent it seems. How they managed to mess it up is beyond me though.


RROD was that bad for MS?

it cost microsoft over 1.8 billion total sofar since 2007, which is not that bad over all with Microsoft fixing the problem, it may have cost them more if they had not done what they did.

Isn't that the total losses for the 360?  Not just RRoD.

nope that is the total to date on the RROD. which like i stated is not bad if you consider the number of faulted system's that they did have which was 11.6 million.

Where did you get that number then? Also, where did you get the number for the total systems they have repaired?  Because that sounds almost exactly what the total losses on 360 were.  RRoD was just 1 Billion of it.

robbie stated back in 2007, 11.6 million at the time had flaw's Microsoft set aside 1.8 billion to cover this cost!

1.2 billion was already used to upgrade the unit's as they came in and what product they had going on then forward.  for the quarter back in 2007 out of the 1.8 billion 1.2 billion was spent in just that quarter out of the 1.8 billion, MS spent the money to fix the error's in production also they set aside more than they needed but the money was still already  spent .

 



I AM BOLO

100% lover "nothing else matter's" after that...

ps:

Proud psOne/2/3/p owner.  I survived Aplcalyps3 and all I got was this lousy Signature.

drkohler on 21 May 2010
kowenicki said:
yum123 said:
its under $10 they said they hope to make double digit profit by the end of the year so that implies there only makinfg very small amounts and if you think theres a price cut coming get real why would sony even think a bout that if they just started making profit there wont be a price cut until at least holidays 2011


this is what I read too... from sony themselves.

also... the euro collapsing against the yen may well have just wiped this profit out again.

Note when industry execs talk about those things, they _always_ mean %, not actual $ and c. So when the Sony exec mentioned entering double digit profits, this translates to roughly $25-$30. Since they are currently (well?) below double digit, we can estimate Sony gets about $5-$15 at this time. With currencies going down the drain, kowenicki is very probably right.



drkohler on 21 May 2010
nightsurge said:
joeorc said:
nightsurge said:
joeorc said:
Xbbjf9s said:
averyblund said:
Those are teardown prices, they don't include packaging, R&D, transport, or marketing. if a price-cut happens I don't think things will turn around until sometime in 2011.

Between the 360 RRoD and PS3 build-cost this is gonna be a generation that MS and Sony are going to wish they could forget. Neither will exit it having made a cent it seems. How they managed to mess it up is beyond me though.


RROD was that bad for MS?

it cost microsoft over 1.8 billion total sofar since 2007, which is not that bad over all with Microsoft fixing the problem, it may have cost them more if they had not done what they did.

Isn't that the total losses for the 360?  Not just RRoD.

nope that is the total to date on the RROD. which like i stated is not bad if you consider the number of faulted system's that they did have which was 11.6 million.

Where did you get that number then? Also, where did you get the number for the total systems they have repaired?  Because that sounds almost exactly what the total losses on 360 were.  RRoD was just 1 Billion of it.

The only real number we have is when MS basically admitted to the RRoD debacle and set aside additional $1.2billion to cover the cost. The key word here (and most people seem to have overlooked that little bit), was the word ADDITIONAL. Now we can all play the guessing game how much MS set aside for ordinary "planned" repairs for a brand new product XBox360. (Every company sets aside such costs when introducing a new product if they want to stay in business). All guesses are allowed, but $200-$500million is a reasonable guess. The only indication we have again, is that software-tester guy who forgot his NDA (and later got sued left and right I guess) that spilled the beans about initial production runs failing almost 100% at the end of the assembly lines). So total loss from RRoD could be around $1.5b which would add almost $40 manufacturing cost to every XBox360 ever produced until now...



thismeintiel on 21 May 2010
MARCUSDJACKSON said:
Xbbjf9s said:
averyblund said:
Those are teardown prices, they don't include packaging, R&D, transport, or marketing. if a price-cut happens I don't think things will turn around until sometime in 2011.

Between the 360 RRoD and PS3 build-cost this is gonna be a generation that MS and Sony are going to wish they could forget. Neither will exit it having made a cent it seems. How they managed to mess it up is beyond me though.


RROD was that bad for MS?


yes it was. or it could be how you look at it. i got a report that they've spint more than $1b trying to fix the problem. but from 62% to 42% is a real improvement and shows dedication to the consumer.

You're right about your $1 bil figure, but, and no offense, you're completely wrong about the dedication to the consumer.  If they were truly dedicated, they would have recalled the 360 within months of its launch and reworked it for a release in time for the PS3 and Wii.  Instead, they chose to lie about the problem for over a year, only to be forced to extend their warranty to stop the flood of lawsuits.