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Forums - Sales Discussion - Is Sony really losing that much MORE money on the PS3 after price cuts?

Lost tears of Kain on 19 December 2007

THey were losing what 240 bucks at launch for the 600 buck ps3? they cut the price by 200, and so unless they cut the production values by half i dont see them coming close.

THey can still cut the price, but if they want to stop bleeding they wont. Matters what they want more.



                 With regard to Call of Duty 4 having an ultra short single player campaign, I guess it may well have been due to the size limitations of DVD on the XBox 360, one of various limitations multi-platform game designers will have to take into consideration-Mike B   

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Jandre02 on 19 December 2007
Bladeneo said:
Well, according to the bible aka wikipedia (backed up with a loooot of reference links) the minimum cost reduction, including blu-ray manufacturing costs etc is around $150. The exact reduction of the move to 65nm and removal of the chipset is unknown, but Id say it'd be at least $50.

Obviously this isnt concrete fact, but its the closest I can find, it looks okay for Sony in terms of money lost, they dont seem to be in any worse situation.

 Thanks thats what I was really trying to find out. Now I have ammo to fight against Sony haters, haha. I also think once the store updates to allow movie downloads and things like that, that Sony will be making alot more money. This is part of the reason I'm assuming that Microsoft was able to make profit off of their gaming division.

I don't think the 360 hardware itself was profitable, but with online sales, Halo 3 massive sales, and online subscriptions, they were making lots of money, enough to overturn losses suffered from the console itself. 



Sorair on 19 December 2007
Jandre02 said:
Sorair said:

Why worry about it, if Sony is still making PS3's?


Simply, price cuts. If they arent losing more money since launch as of now, they would be in a good spot to cut prices to $299.


Smart-guy they are doing absolutely top-notch right now. With the 40GB PS3 on the market it gives consumers a better grab at getting the PS3.

Sony doesn't need to lower or make any price cuts any time soon, until sometime late 2008/early 2009. 



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konnichiwa on 19 December 2007

Their are so many factors that we don't know..

Just to name one of them

More PS3's sold = More Blu Ray films that will be sold....(I guess).

But we don't know how much money the make for Blu Ray movies (Or do we?).






solid snake on 19 December 2007

not rly

stuff needed to make the ps3 prices is going down as well so sony dosnt lose as much money as it used to



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Sorair on 19 December 2007
Lost tears of Kain said:
THey were losing what 240 bucks at launch for the 600 buck ps3? they cut the price by 200, and so unless they cut the production values by half i dont see them coming close.

THey can still cut the price, but if they want to stop bleeding they wont. Matters what they want more.

Is Sony still producing PS3's...I think your response is yes...

If they were bleeding they would of said that they were doing awful now. Take into consideration that they have now produced a 40GB PS3 that has a 65nm CPU inside, they did manage to lower the price on that 40GB SKU... 



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Jandre02 on 19 December 2007
Lost tears of Kain said:
THey were losing what 240 bucks at launch for the 600 buck ps3? they cut the price by 200, and so unless they cut the production values by half i dont see them coming close.

THey can still cut the price, but if they want to stop bleeding they wont. Matters what they want more.

 Heres my point right here.

They only cut the price $100

599 highend

499 lower spec

cut to

499 high end

399 lower spec.

So they are losing about the same after price reductions 



ymeaga1n on 19 December 2007

First off, I followed what you were saying until you got to your 'point' (last two paragraphs). But if you think Sony will cut the price to $299 next year than you're living in dream world.




konnichiwa on 19 December 2007
ymeaga1n said:
First off, I followed what you were saying until you got to your 'point' (last two paragraphs). But if you think Sony will cut the price to $299 next year than you're living in dream world.

 Yes I am...Atleast the people know me here....






Sorair on 19 December 2007
FishyJoe said:

The problem for Sony is the only way they can compete is by lowering prices. They are forced into a business model of loss and/or low margins.

Also, there are cost associated with coming out with new SKUs every six months. There is a certain amount of R&D expense and retooling costs whenever you create a new model. So while there may be cost savings, they aren't immediate nor is it a simple matter of reduced component cost.


Might I add to what I highlightened in bold:

Bringing out the neccessary software to attract the crowd is needed now...



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