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

Jandre02 said:
I weezy said:
Lets say Sony stuck to their guns all last year and kept the prices of PS3 at $500-600..

They would have sold around 6 Million PS3's...Maybe less

But they slightly modified the PS3's guts and lowered cost and are losing even more money.

So you could say Sony did an alright job improvising with their mistakes.
But are losing even more money.

This is just funny now. Why is it that people want the PS3 to be losing money so bad? Its like you all forget that SONY OWNED GAMING FOR 7 YEARS! They know what they were doing, its not like they made the PS3 and then said "oh shit, my bad, that was a complete mistake."

They messed up a few things, but blu-ray was the main cost. I think the cheapest Blu-ray player was like 1,000 when the PS3 came out wasnt it? Now its sub-$400, yet no one believes that Sony cut costs?

The production costs have come down much more than $100 dollars since launch. They have also taken some production parts of of developement, and cut down production errors. You dont have to believe it if you dont want to, just know that it is very likely that Sony will reach $299 this year.

 

 


Since when do you have to be intelligent to be successful? Sony essentially stumbled into success. The PS1 began as a joint venture between Sony and Nintendo, but Nintendo backed out (which was a stupid move on their part) and Sony decided to go forward with the product as revenge. Sony was aided by the fact that Nintendo had mismanaged its third party relations, leading to the defection of developers.

 The PS2 was a completely retarded hardware design. While the games industry was in the middle of the great migration to hardware accelerated 3D they combined an unconventional CPU with an anemic GPU resulting in a cumbersome system that could never match the performance of a system using an off the shelf CPU with a good GPU. The PS2 succeeded by virtue of its early launch, the successful efforts of its PR team to derail the Dreamcast, and the reluctance of developers to defect again so soon.



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rocketpig said:
Sorrow880 said:
The blu-ray diodes cost has already dropped by $100.00 or so. They did cost OVER $100 a piece when the ps3 first came out, not they are around $7.00 a piece. That's HUGE savings from just one part.

Then why are BD players still retailing for the same price as a PS3?


 Because there is a 40% win calculated in (20% shop, 20% manufacturer).



RabidBunny said:
@rocketpig
Thank You. I get it. You are trying to pigeon hole the lose to PS3 hardware (which seems logical to me) since other parts of SCE are making a profit. This would give you a feeling of minimum loss per unit (if lose is $500,000,000 and 3,774,872 units were sold-> 132 dollars lost per unit minimum).
RabidBunny
 That ignores marketing and other costs. 

 



Non Sequor said:
Jandre02 said:
I weezy said:
Lets say Sony stuck to their guns all last year and kept the prices of PS3 at $500-600..

They would have sold around 6 Million PS3's...Maybe less

But they slightly modified the PS3's guts and lowered cost and are losing even more money.

So you could say Sony did an alright job improvising with their mistakes.
But are losing even more money.

This is just funny now. Why is it that people want the PS3 to be losing money so bad? Its like you all forget that SONY OWNED GAMING FOR 7 YEARS! They know what they were doing, its not like they made the PS3 and then said "oh shit, my bad, that was a complete mistake."

They messed up a few things, but blu-ray was the main cost. I think the cheapest Blu-ray player was like 1,000 when the PS3 came out wasnt it? Now its sub-$400, yet no one believes that Sony cut costs?

The production costs have come down much more than $100 dollars since launch. They have also taken some production parts of of developement, and cut down production errors. You dont have to believe it if you dont want to, just know that it is very likely that Sony will reach $299 this year.

 

 


Since when do you have to be intelligent to be successful? Sony essentially stumbled into success. The PS1 began as a joint venture between Sony and Nintendo, but Nintendo backed out (which was a stupid move on their part) and Sony decided to go forward with the product as revenge. Sony was aided by the fact that Nintendo had mismanaged its third party relations, leading to the defection of developers.

The PS2 was a completely retarded hardware design. While the games industry was in the middle of the great migration to hardware accelerated 3D they combined an unconventional CPU with an anemic GPU resulting in a cumbersome system that could never match the performance of a system using an off the shelf CPU with a good GPU. The PS2 succeeded by virtue of its early launch, the successful efforts of its PR team to derail the Dreamcast, and the reluctance of developers to defect again so soon.

i totally agree with this.  Sony was extremely fortunate with the PS1.  It's extremely difficult to come out of nowhere and win a generation, but Nintendo and Sega screwed it up so badly that it wasn't even very difficult for them.

 



currently playing: Skyward Sword, Mario Sunshine, Xenoblade Chronicles X

So Sony is now selling Ps3 for the same amount it cost them to manufacture, that's great news, that means they'll be able to make some profit from the PS3 soon this year.



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Troll_Monster said:
So Sony is now selling Ps3 for the same amount it cost them to manufacture, that's great news, that means they'll be able to make some profit from the PS3 soon this year.

 I hope that's sarcasm.  Else you didn't read about 1/3 of the posts in this thread, saying how that manufacturing costs is just one cost of many that Sony has to cover to breakeven when it sells a PS3, not to mention that the store doesn't hand over the full retail amount of the sale to Sony either.



Torturing the numbers.  Hear them scream.

Sony fanboys have been claiming for the last six months that the PS3 is breaking even. Sony recently claimed that they hope to break even by march. And now we have this in January. Doesn't it seem somewhat convenient for the cause of making the PS3 look more marketable to investors?



Here's the link from Engadget and I believe that's a respectable source of information

http://www.engadget.com/2008/01/12/sony-cuts-playstation-3-production-cost-in-half/

By the way, if the manufacturing cost is about 400$ then with the shipping and distributing is expensive of course, but at least they are winning money over the 80GB PS3 on US and they are winning on every PS3 sold in Europe, because the cheapest PS3 there costs 400 euros and thats about 600$



Read the article. The source is Nikko Citigroup. The same firm that said the PS3 would wind up with 22% market share in 2012.



Of course if MS forces them to drop prices again they won't be making profit any time soon



 

Predictions:Sales of Wii Fit will surpass the combined sales of the Grand Theft Auto franchiseLifetime sales of Wii will surpass the combined sales of the entire Playstation family of consoles by 12/31/2015 Wii hardware sales will surpass the total hardware sales of the PS2 by 12/31/2010 Wii will have 50% marketshare or more by the end of 2008 (I was wrong!!  It was a little over 48% only)Wii will surpass 45 Million in lifetime sales by the end of 2008 (I was wrong!!  Nintendo Financials showed it fell slightly short of 45 million shipped by end of 2008)Wii will surpass 80 Million in lifetime sales by the end of 2009 (I was wrong!! Wii didn't even get to 70 Million)