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Forums - Sony Discussion - Estimated PS Vita bill of materials : $159.10

Paul said:
logic56 said:
Paul said:
logic56 said:
Paul said:
logic56 said:
ImJustBayuum said:
 


Your post defy logic. Soleran's post was directed at overhead costs incur under the playstation division. Manufacturing companies do trace these costs back to products using an overhead rate. eg building costs, electricity, deliver costs..etc etc

and all those miniscule cost of the entire playstation division is added to the cost of the Vita.....yeah sure

I hear that majic fairies cover all of Sony's fixed costs. That's why Nintendo is currently losing money on the 3DS, they don't have any majic fairies.

magic

and whateveryousaybro hence my original comment

Sony can't be making money on the Vita because Nintendo is incompetent and have no faith in their own hardware leading to a massive as fuck price cut which also cut their profit margin 

the people who take the PS3 as the end all be all for powerful hardware design

Can I ask you on off topic question? How did you come up with your user name?

easy to remember and type in, what does it matter

It doesn't really matter at all, I just find it funny when I read your posts.

because entertaining the notion the Sony actually knows what they're doing is just too much to bear for some of you, I understand, I think it's pathetic, but I understand



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logic56 said:
disolitude said:
logic56 said:
Soleron said:

That's what it costs Sony to have it made for them. This doesn't pay for a single SCE employee to exist, so consider they have thousands of employees in the Playstation division (for marketing, future R&D, testing, returns, firmware, etc) and add that to the cost.

The more Vitas they sell, the more  diluted those fixed costs are over each unit.  If they don't sell enough Vitas it should be obvious they'd make a loss even if each unit was very profitable.

WOW.... desperate

WOW.... vague

oh sure, but why stop there

from what I hear, they also have to pay to keep their lights on in all the various buildings that they own surely that factors into Vita cost as well, gas for all the company vehicles amirite yo amirite that factors into Vita also, frequent flyer miles for the VP of everything, that factors into Vita too, Kaz haircuts, oh and lets not forget their team of highly trained Recon Ninja's who sole purpose is to steal everything Nintendo does surly that goes into Vita as well, and other stuff I'm probably forgetting

so lets calculate

*pulls out calculator*

if we multiply bullshit, by you've got to be kidding me, added to you can't be serious divided by yeah he's serious, to power of WTF with a square root of FFS, you get a grand total of: That Desperate...

so uhhh unless my math is wrong, that desperate :/

 

edit: and I know you won't think it's funny...but I don't care, so sorry in advance


I do think your post is somewhat funny...but not very logical.

In any case, most people should realize that these estimates are innacurate at best. They don't thake quantity in to consideration. I am pretty sure most of the PSV's components are not off the shelf and are custom made for the console. So the more Sony makes of them the cheaper it is per unit in the long run.



disolitude said:


I do think your post is somewhat funny...but not very logical.

In any case, most people should realize that these estimates are innacurate at best. They don't thake quantity in to consideration. I am pretty sure most of the PSV's components are not off the shelf and are custom made for the console. So the more Sony makes of them the cheaper it is per unit in the long run.

becasue you may understand

I have not, nor have I or any "sony fan" ever stated that these estimates are the total product cost and are an indication of massive profitz, it does however show that it is not as expensive as most would want people to believe, and as such would clearly losing Sony massive amounts of money. 

at worse they are breaking even



FAKE.
There's no way the Vita is cheaper to make than a 3DS. We already know Nintendo is making a loss on each one at $169.99.

If the tech inside the Vita was really that cheap, don't you think Nintendo would have added a little more power to the 3DS considering its CHEAPER!?



VGking,
3DS costs 100$, Vita 160$
Vita has no 3d screen, so i think 160 is very likely



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mike_intellivision said:
Chark said:
ZaneWane said:
Turkish said:
PSV is making a nice profit for Sony with them games, 3G model and memorycards.

still losing money on each vita sold http://andriasang.com/comw7e/vita_loss/ 


No! Read the Reuters article that this article got its info from. Kaz says "turn a profit within three years of the body of the Vita sales". That does not mean that the Vita isn't selling for profit now and won't for 3 years. It means that in 3 years they expect the Vita to have brought in more money than it cost to make. That includes manufacturing, R&D, advertising, etc. 

Haven't I corrected you on this before or are you another victim of miscommunication created by terrible article writters on the internet.


If I recall that article, it was three years and 70M sold to turn a profit.

And profit here means positive return on investment, including covering sunk costs, which I am sure is part of Sony's (or any business's) calulations with a new product.

 

Mike from Morgantown

They were talking seperatly about reaching PSP sales levels within the Vita's lifetime then they started talking about profit, so they were not related. 3 years to have return on investment indicating that either:

1) the Vita hardware is selling at a profit,

and/or

2) Vita software and accessories are providing overall profitability for the product as a whole. 

The confusion is created by those websites that mistranslated, misunderstood, or purposesvly spinned(lied) that Vita was being sold at a loss despite Sony never saying that and discussing return on investment profitability 3 years down the road.



Before the PS3 everyone was nice to me :(

why all Sony fans want us to believe Vita is selling at a profit?



mike_intellivision said:


If I recall that article, it was three years and 70M sold to turn a profit.

And profit here means positive return on investment, including covering sunk costs, which I am sure is part of Sony's (or any business's) calulations with a new product.

 

Mike from Morgantown

70 million in 3 years... that makes sense to you, that's 25 million a year minimum

c'mon people seriously this shouldn't be that hard



logic56 said:

70 million in 3 years... that makes sense to you, that's 25 million a year minimum

c'mon people seriously this shouldn't be that hard


Nitpicking to suit their own agenda. Pretty simple explanation TBH.



@dieappledie

It is not about believing, I'm just looking at the facts. There is a chance the hardware is breaking even, or more likely than that the wifi selling at a loss and the 3G at a profit. But without accurate figures of to market costs we can't be for sure. With basic assumptions it looks like the Vita is making a profit, for example 3DS selling at a loss with a $70 markup, while the Vita at $90 and $140. If logistics are equal between Nintendo and Sony, for simplicity, then for the Vita to sell at a loss the 3DS would have to be loosing over $20 to over $70. Highly unlikely.

Let's not forget Vita's memory card requirment, under normal circumstances unbundled, people pay $20 to $100 for memory and that's a guarentee sell, so any profit made from that can be applied to the Vita. If Sony made memory internal those profits would be unquestionable, so don't rule it out because it is external, if anything it creates more profit since people can buy multiple memory cards. It is a pretty decent set up for profit. I just don't know why Sony didn't just have Vita's with memory in the box, selling at $270 to $400. I suppose the base price number of $250 was really important at the time against 3DS.



Before the PS3 everyone was nice to me :(