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Forums - Sony - Sony breaking even on PS3/making profit 40gb PS3

rocketpig on 11 January 2008
URNotE said:
Bodhesatva said:

Like others here, this information is so shocking (has any major electronics product ever been able to half its production cost in a year? Going from 800 dollars to 400 dollars in 12 months?) that it's hard to believe, but the really puzzling thing is that the same people who made this statement -- Nikko Citigroup -- also expect SCE to lose 1.4 billion this year, and that they will "not be prosperous until late 2009."

So, if Sony isn't losing money on the consoles, why are they are apparently still going to be hemmoraghing cash for a long time to come?


well the production cost was down to 600 as of about months ago.... so they are still gonna be losing money on all the 60 and 80 gigs on the market because of the production cost at the time... the 40 gig had parts removed so thats believable plus with the cost of blu ray drives going down .. i do think that they are close to it... but i do believe they are still losing money on the 80 gb as the article states...


While they did cut costs out of the PS3, the savings can't be that substantial.

After all, the PS2 retails for only $129 including the EE (removed from 80GB & 40GB), GPU (removed from 40GB), mobo, memory, controller, advertising, etc. etc. and you know Sony is making a profit at that price.




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weezy on 11 January 2008

End of story Rabidbunny, the PS3 was supposedly a $900 device and 12 month later and after many cost cutting moves, i dont think the ps3 costs 400 to make.

PS3/Sony are just trying to give you fanboys some much needed ammo in this "next gen" war. they dont want you guys running into a battle, your most likely gonna lose, w/o a little something to say ROFLROFLROFL.



I am WEEzY. You can suck my Nintendo loving BALLS!

 

MynameisGARY

RabidBunny on 11 January 2008

@rocketpig
Just because the price in the store wasn't half didn't mean the cost of production didn't drop in half. I am no longer with the company I used to be with, but we did DVD Player chips and DVD reference designs. Also the DVD Recorder chipsets and cost really were cut in half in one year. Just because the cost was passed on through retail (someone made higher margins) doesn't change the base costs.
RabidBunny



weezy on 11 January 2008

@Rabidbunny ---- honestly I think your blindly fighting a war you already lost.



I am WEEzY. You can suck my Nintendo loving BALLS!

 

MynameisGARY

URNotE on 11 January 2008
weezy said:
End of story Rabidbunny, the PS3 was supposedly a $900 device and 12 month later and after many cost cutting moves, i dont think the ps3 costs 400 to make.

PS3/Sony are just trying to give you fanboys some much needed ammo in this "next gen" war. they dont want you guys running into a battle, your most likely gonna lose, w/o a little something to say ROFLROFLROFL.

it was 840 on the 60gb to be exact... if you actually followed  the story you wouldnt be saying 900...and that was 14 months ago to be exact...after six months they reduced it down to 600....



URNOTE Proud Owner of a 60GB PS3 Console (Purchased 12/22/06)

 #1 reason MGS4 is PS3 exclusive  xbox is too loud for snake to sneak around
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zackblue on 11 January 2008

@weezy

Cool the temper will yah.

Anyhow, Im happy for sony, if this is true then they are going to be having the best year for the ps3 in 2008.



 

 2008 end of year predictions:

PS3: 22M

360: 25M

wii: 40M

rocketpig on 11 January 2008
RabidBunny said:
@rocketpig
Just because the price in the store wasn't half didn't mean the cost of production didn't drop in half. I am no longer with the company I used to be with, but we did DVD Player chips and DVD reference designs. Also the DVD Recorder chipsets and cost really were cut in half in one year. Just because the cost was passed on through retail (someone made higher margins) doesn't change the base costs.
RabidBunny

Good point. The players could have been sold at breakeven or a loss initially.




Or check out my new webcomic: http://selfcentent.com/

weezy on 11 January 2008
zackblue said:
@weezy

Cool the temper will yah.

Anyhow, Im happy for sony, if this is true then they are going to be having the best year for the ps3 in 2008.

??

Zachblue were you sheltred as a child?

When was I getting mad? lol



I am WEEzY. You can suck my Nintendo loving BALLS!

 

MynameisGARY

RabidBunny on 11 January 2008

I am exiting this. There was a question if cutting cost in half in a year was possible, and that was the only part I really had any input. I don't know if Sony has done this, but I know I have cut the BOM cost in half in less than a year for new products.
RabidBunny



Jandre02 on 11 January 2008
weezy said:
End of story Rabidbunny, the PS3 was supposedly a $900 device and 12 month later and after many cost cutting moves, i dont think the ps3 costs 400 to make.

PS3/Sony are just trying to give you fanboys some much needed ammo in this "next gen" war. they dont want you guys running into a battle, your most likely gonna lose, w/o a little something to say ROFLROFLROFL.

Or maybe your just too emotional to see that Sony isnt stupid, and if the price point was going to stay at 900 per console they would have never released it. Sony has cut costs, mostly because of Blu-Ray diode. And what YOU THINK and what a trusted company such as Citigroup thinks are two completely different things.

If you dont understand how it is possible for Sony to do this, then I feel sorry for you. I think its more that your in denial, and your hate for Sony makes you WISH they cant do this. But they have, and regardless of how many times you say "OMG I DONT BELIEVE IT" its true. Deal with it sweetheart.