Conegamer said:
Jay520 said: @ Conegamer Why did you ignore my reply to you? It's the 26th post in this thread. |
My apologies. My computer says there's malware on that page (though I doubt it) so I never saw it and can't go back to that page. What was it?
@Andres- I thought this was mentioning things clearly in the post. The loss comes from shipping costs, VAT, import tax, retailers cuts (retailers make money on each unit of HW sold; they're a business, after all), and more money would be lost via R@D, salaries, production etc.
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I know all this, but it's not a reply to my reply to you. I know you talked about the retailers cut, but I told you your numbers were probably dodgy and I explained why. You didn't include import tax, shipping costs, manufacturing costs including assembly on the actual 3DS, the cut that the CPU/GPU suppliers get... so it would cost more than $97 to manufacture them, that's just how much the parts cost, meaning your number for the retailers cut probably isn't very accurate.
That and Sony can easily afford to break even or take a small loss on individual units, because that money is easily made back of game sales (including bigger profit margins on PSN) and service subscriptions like netflix and PS+. Concerning R&D costs, the PS4 is using largely off the shelf parts, though customized. This'll take costs way down, especially compared to what the PS3 cost them in R&D. Look at PSV, Sony barely breaks even on hardware, and they still need to get their money back on R&D, salaries etc. yet it'll be profitable within a few years. That was their plan, and that's on a console Sony didn't expect to sell particularly well (and hasn't).