Sort of on the same topic, but well, do you think that the PS3's strength in the EU is helping their bottom line more than we're giving it credit for? With the disparity between the dollar and the euro (currently $1.44 to the euro), Sony's lead in Europe is financially helping, while not selling as many consoles in the US is actually lessening Sony's losses.

Just a thought. :)

Jandre02 said: 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

No they had 600 and 500 at begining

500 died, 600 left. They then cut it by 100 to 500, then they made a new one for 100 dollars less

which is like cutting 200 bucks off kinda.

In all pretty much its 440 bucks they would be losing if they didnt cut the price production at all, so how much did they cut off 100 200 300?

60GB model $599=>$499 Had ONE price cut.

80GB model $599=>$499 Had ONE price cut.

If you don`t understand that, then you are DUMB.

Jandre02 said: 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.

Sony just said that they expect to break even on console losses on PS3's in 2009. Or atleast that's what that last article read like to me. Also, they've said to not expect any cuts recently. Kaz wants to stop losing money in the gaming division by mid 2008, considering PS2 sales can only go down... that means they have to make it up with PSP and PS3 sales. PSP sales can't go much higher... so.... they are going to have to start selling WAY more PS3 software, or try and lose less per console PS3 wise. Since the game division's losses were pretty much PS3 losses via software and hardware... i wouldn't hold your breath for pricecuts anytime soon. I'd expect mid 2009.

Wasnt there an article posted here on this site about Sony selling the Cell manufacturing off to... Toshiba? Anyways, in that article it breaks down how much money they are saving on the more refined techniques and better chips (ie 65nm and the soon to be (next year maybe?) 45nm)

I was pretty sure at least it did, and if not I know I found somewhere, like Cnet or an equivalent tech site a break down of the prices of its components, and it all came to about even on each console sold at the new price points.

In there it also went to say that at the current rate of price reduction and upgrading of techniques (like not having to scrap so many Cells due to production flaws) that Sony could not only drop the price to 299 next Q4 but at least break even on consoles at that price point.

I'll dig around and see if I can find the links, though it doesnt really bother me that much, this site loves predictions, so I'll say its going to be profitable (or break even) on ever console sold by the end of 2008.

SRLemmiwinks said: Wasnt there an article posted here on this site about Sony selling the Cell manufacturing off to... Toshiba? Anyways, in that article it breaks down how much money they are saving on the more refined techniques and better chips (ie 65nm and the soon to be (next year maybe?) 45nm) I was pretty sure at least it did, and if not I know I found somewhere, like Cnet or an equivalent tech site a break down of the prices of its components, and it all came to about even on each console sold at the new price points. In there it also went to say that at the current rate of price reduction and upgrading of techniques (like not having to scrap so many Cells due to production flaws) that Sony could not only drop the price to 299 next Q4 but at least break even on consoles at that price point. I'll dig around and see if I can find the links, though it doesnt really bother me that much, this site loves predictions, so I'll say its going to be profitable (or break even) on ever console sold by the end of 2008.

 If they could break even at $299 why wouldn't they drop to that level, since they are in third place at the moment

Well every cent they made from the ps2 they have lost with the ps3. Arguing its not really losing that much, is rubbish. The ps3 would have to be highly profitable for them to even start making back a fraction of what they lost. Losing a little bit less than at launch is not helping, they are still losing and most likely will continue to lose for years to come.

CrazzyMan said: 60GB model $599=>$499 Had ONE price cut. 80GB model $599=>$499 Had ONE price cut. If you don`t understand that, then you are DUMB.

Regardless of whether you call it one or two price cuts it is misleading because it is not that simple ...

The PS3 launched with a 60GB model for $600 and a 20GB model for $200
The 20GB Model was discontinued
The 60GB PS3 saw a price reduction to $500 and Sony introduced an 80GB model for $600
The 60GB Model was discontinued and the 80GB model saw a price reduction to $500
Sony introduced a 40GB Model for $400

That's a lot of changes in one year...

 

Anyways, the original poster has a point (and one which I have made before) ... If you look at the difference in hardware components of the original 60GB PS3 and the 40GB PS3 [without considering the cost reductions of making the components] there is not a lot taken out which can justify a $200 price difference. So, in order for Sony to be losing less than they were on the 60GB they would have had to save about $200 on what it costs to manufacture the individual components; it is possible that they're losing less but they are still a very long way from making a profit on the system.

sony is obviously still losing a ton on every ps3 sold. and they will continue to do so for long enough so that they will only lose money this gen. but honestly do you think the ps3 (speaking purely about the sale of the system and not games or anything else) will ever be sold for a profit? i'm sure the current cost is at least 100 bucks over what they are selling it for. and they are gonna have to continue to cut the price for the next year or two until the hit a mainstream price and can actually start selling decent amounts of the system. but that means that they will always be pushing that profit further and further away. will the cost ever catch up with the price? i'm honestly not sure that it will. poor sony.

I don't know how much more Sony can afford to drop the price of the PS3 and I think it might just be a very serious problem. I mean if you look at the sales in the past few weeks the 360 and PS3 have pretty much been in a dead heat. Regardless of how much Sony loses on each one, Microsoft loses less. Also Microsoft has more money to blow then Sony does and I'd guarantee that at some point MS will drop the price of the 360 next year. Assuming this gives a boost to the 360 that might push it over the PS3 worldwide again. Can Sony afford to make the cuts to stay even?? Or will they hope that their heavy hitters will sell enough hardware to stay on pace with 360?? I think this might be a serious issue.