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

kitler53 on 11 January 2008

Nikko Citigroup has reported that by shrinking the chip sizes, re-evaluating parts (ie removing the Emotion Engine) and various other design tweaks, Sony has been able to bring the production cost of each console down to $400US from what was pre-November pre-40Gb model, $800US.


for me the key part of this article is that Nikko Citigroup is the source for the cost of a ps3, i'll believe it when i hear it directly from sony. I feel confident that if they were in the black we'd hear about that instead of their press release saying they hope (but aren't committed) to becoming profitable sometime in the next fiscal year.



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brute on 11 January 2008
Diomedes1976 said:
The article had its source ,it wasnt made up estimations .

yes but dont you think sony would of been reporting this much more



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wiifm on 11 January 2008
brute said:
dont you think sony would of make this a big deal if it was true?

 This would only raise new questions when the next price cut would be around ....

I doubt that most customers care about Sony's productions costs, they just care about what they have to pay for the console in the end. 

 



Just_Ben on 11 January 2008

Ah like always, somebody thats not a fanboy or hateboy.... gets ignored.



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Mummelmann on 11 January 2008

It's not that unfazing when you consider the massive price plummets on all the PS3's hardware lately.
Sony are always cost efficent this way, their first Bravia series was nearly halved in price over the course of 15 months here in EU.



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madskillz on 11 January 2008

We'll see when the financial reports hit later this month.



DKII on 11 January 2008

Even if it's $400 in production costs -- which is just an estimate -- that's not even close to breaking even. There's still shipping, distribution, marketing costs (the massive flood of PS3 ads on TV aren't free you know), and they don't sell it to retailers for $399 either (though it is close to that).

Considering Sony themselves said the PS3 as a whole (hardware + software) wouldn't be profitable until at least the middle of this year, I'd take this with a grain of salt.



jjseth on 11 January 2008
mesoteto said:
i doubt it--sony would be all over the place happy about this right now--and beside werent teh higher ups in the company not planning till late this year early next year to turn profit from the system?

Unless Sony has another price cut coming very shortly which would mean that it would be losing money (not as much as at first) on units.



 


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Jandre02 on 11 January 2008
wiifm said:
"Sony breaking even on PS3" isnt exactly what this article says, its just "PlayStation 3 production cost cut in half" which is quite a bit different ..... Before making up weird topics it would be better to stay with the actual claim :)


Also now that production costs are below the RRP, this leaves Sony some breathing space to bring the price down once again without disrupting profits. "

 

Maybe I am reading that wrong, but doesnt that mean it breaks even? Am I wrong or did you just fail to read the article?



Diomedes1976 on 11 January 2008

The source is Nikko Citygroup .They may be even on the PS3 but still have to pay all its employees ,first party development teams ,technology inversions ,shipping ,publicity etc .They arent in black yet ,but not losing anymore in each unit sold its a good step .