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Forums - Sony - Pachter says PS4 will sell at a small profit for Sony, GTTV

Vinniegambini on 16 June 2013

Small loss - http://gengame.net/2013/05/sony-ps4-will-not-sell-at-a-major-loss-like-its-predecessor/



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ironmanDX on 16 June 2013

I doubt it. The Xbox ONE is the cheaper console selling for more. Are MS even going to profit day 1? That answer surely would come first.



bananaking21 on 16 June 2013
Vinniegambini said:
Small loss - http://gengame.net/2013/05/sony-ps4-will-not-sell-at-a-major-loss-like-its-predecessor/


that article is pretty old, it published on may 9th



Aielyn on 16 June 2013

"Pachter says..."

I don't really need to read any further. Anything that Pachter says in public is worthless - if it had any value, he'd charge for it. That is his job, after all - to sell analyses.



Galaki on 16 June 2013

My anonymous source tells me it costs Sony $25 to produce PS4.



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Vinniegambini on 16 June 2013
bananaking21 said:
Vinniegambini said:
Small loss - http://gengame.net/2013/05/sony-ps4-will-not-sell-at-a-major-loss-like-its-predecessor/


that article is pretty old, it published on may 9th

This was at Sony's earning call. They know their profit margins. I will take that over Patcher's word.



binary solo on 16 June 2013
Vinniegambini said:
bananaking21 said:
Vinniegambini said:
Small loss - http://gengame.net/2013/05/sony-ps4-will-not-sell-at-a-major-loss-like-its-predecessor/


that article is pretty old, it published on may 9th

This was at Sony's earning call. They know their profit margins. I will take that over Patcher's word.

Sony were hedging there. "not going to sell at a major loss like PS3" isn't the same as saying "we will sell at a small loss". The inference is that selling at a small loss is the most likely result, but it's not confirmation. But that's good info. Out of Sony's mouth is a reassurance that there won;t be a big loss per unit, but not confirmation of exactly how it's going to shake out.

I'll take that to mean it'll be close to cost either side, and a sustainable economic position for Sony.



“The fundamental cause of the trouble is that in the modern world the stupid are cocksure while the intelligent are full of doubt.” - Bertrand Russell

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ethomaz on 16 June 2013

It is in line with my estimates... GAF and Beyond3D too.

  • APU (CPU/GPU) - 85
  • 8GB GDDR5 - 110
  • OS Chip (supposedly ARM based) - 12
  • Video encode/decode chip - 8
  • Blu-ray drive - 18
  • Hard drive - 38
  • I/O - 9
  • Wireless chip + antenna - 4
  • HDMI+HDCP - 11
  • Other - 25

http://gamrconnect.vgchartz.com/thread.php?id=155627

That is really old... today I think the APU will cost even less... the GDDR5 too.

 



BaldrSkies on 16 June 2013

Stopped reading at the word "Pachter"



TheJimbo1234 on 16 June 2013
binary solo said:

http://www.gametrailers.com/videos/1zpcu1/e3-2013-e3-2013--pachter-interview--stream-

I watched the interview yesterday and can't be bothered going through it again for the exact numbers. But he says their [virtual?] tear down puts manufacturing at about $325, add other costs to get the units to stores, and the marketing expenses I gues that might put the cost of PS4 up by about $25. Pachter thinks about $375 wholesale, with the retailer getting a $24 margin.

I know Pachter's predictions are often terrible, but I think his technical contacts making these estimates must be reasonably good at what they do. So I'm picking that this is a reasonable estimate. At worst his margin for errorprobably puts PS4 at break even for Sony. Which is still a really good starting point.

I haven't seen any teardown estimates for Xbone, but I'm picking Xbone must be making a small profit too, unless Kinect is a helluva expensive piece of kit.

Anyway, this bodes very well for Sony, and it means Sony will be in a position to drop the price any time after the first year on market and remain profitable per unit. Either to stay within a certain price diferential with Wii U, or to remain cheaper than Xbone, or to just drop the price on a pre-determined pricing schedule.

Sony is a greedy, evil corporation, we must not lose sight of that fact. But they are doing a damned good job of pretending to be our friend.

Sorry I am still an embed noob.

The hell?! Tin hat time already?

But anyway, he numbers seem legit and comes into line with many peoples guesses. This is what happens when you buy off-the-shelf gear. It is cheap and cheerful!