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

Xbbjf9s on 21 May 2010
thismeintiel said:
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. 

this



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nightsurge on 22 May 2010
joeorc said:
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'm gonna need some official links/sources.  Sorry, but this all sounds very wrong and I don't trust random forum goer info without solid sources.



dirkd2323 on 22 May 2010

Yah I have read between 34- 47 dollars on every PS3, If they do another price cut, It will probabley be when they are making even more money on the PS3



Solid_Snake4RD on 22 May 2010

they were making under $10 in the JAN-MAR period and more profit was expected after the RSX induction



Solid_Snake4RD on 22 May 2010
nightsurge said:
supercat said:
I agree, $100 is way too much at this point, NS. I say that $50 could be done though, and keep in mind that Sony looks like it will be getting an additional source of revenue with the premium services thing.

That's my personal prediction, too.  A $50 price cut to the PS3, then have Move bundled in for a total of $349.

how the hell will move be bundled at $349

 

if they take out DS3 and put in Move($30),NAV($20),EYE(20) they could pack in at $299 without a loss.and they will be making profits across other SKU's



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Solid_Snake4RD on 22 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.

it could be very possible.another possiblity is that they could be making from their more expensive pricing in UK

 

they were reported to be making profit of under $10 in the 1st quarter JAN-MAR from the existing units.Plus they hoped to profit more by further reductions

 

one of which is RSX induction MAY 2010

 

also they were making profit in JAPAN for a long time now and because of the YEN,it was cheaper inside the country but JAPAN profits were too less.



Solid_Snake4RD on 22 May 2010
nightsurge said:
joeorc said:
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'm gonna need some official links/sources.  Sorry, but this all sounds very wrong and I don't trust random forum goer info without solid sources.

nightsurge also look yourself as it is pretty diffcult to find an article from way back 2007.it would help a bit



joeorc on 22 May 2010
Solid_Snake4RD said:
nightsurge said:
joeorc said:
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'm gonna need some official links/sources.  Sorry, but this all sounds very wrong and I don't trust random forum goer info without solid sources.

nightsurge also look yourself as it is pretty diffcult to find an article from way back 2007.it would help a bit

example:

Warranty Costs Triple for Microsoft, Xbox 360 Failure Rates Revealed.
It is interesting to note that according to WarrantyWeek, it cost Microsoft $291 million to cover warranty claims in the first nine months of 2007, which is about 4.5%.
but..
Microsoft Xbox Failure Rates May Be As High As (16%)
that's over 900 million in 9 month's for a failure rate of 16% which we know the xbox360's rate may have even been higher than that with some report's that it was over 35%.
what was the % of failure rate for the xbox360 for all of 2008?

1.15 billion set aside was just for 2007! alone
example:
Microsoft Corp.  Warranty Reserve  Dec 08 $490 @ 4.5 %
Claims Paid 2008 @4.5% /$568 million
Claims Paid 2009 @1.4%/$$353 million
Rate Now vs. Year Ago -70%
so as you can see it's down a sizeable chunk not only % wise but also $ amount's/ year
http://www.warrantyweek.com/archive/ww20100401.html


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.

freebs2 on 22 May 2010

The thing I did't get is if they now are making money for each console they sell, or if by saying that ps3 is profitable they mean that they have recovered all the losses caused by it.



thx1139 on 22 May 2010

From the MS 2008 Annual Report 10-K.

EDD operating loss increased primarily due to the $1.1 billion Xbox 360 charge recognized in the fourth quarter of fiscal year 2007 and Zune launch-related expenses.

The set aside was to cover expected additional costs associated with the new 3 year warranty for RRoD and E74 errors. Any previous losses for repairs either were covered by previous warranty setasides and those numbers would have been in the FY2006 report. The set aside was in FY2007 (2nd year 360 was on the market). FY2006 started July 2005. FY2007 started July 2006. 360 launched November 2005. The fact of the matter is RRoD was costly, but since FY2007 EDD division has been profitable and that profit is driven by the 360. The combined profits from FY2008, FY2009, and FY2010 will wipe out the large FY2007 loss which was because of the set aside. FY2011 (starting July) will again proove to be very profitable and wipe out the FY2006 loss. Not to mention that the 360 really is the only major product in the EDD division that is profitable.



Its libraries that sell systems not a single game.