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Forums - Sony - Sony May Gross About $100 Per Console, Teardown Shows

They are not counting the controller, which is always included. Besides their is R&D that Sony has to earn back, taxes, retailer cuts, transport and valuta exchanges.

All in all i think they're making a very small profit on the console, maybe not right now though, but begining in the next 3 months or so. Which is crazy when you think about how the situation was in PS3's case!!!



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I believe someone from Sony said they will make a profit in Europe but not in USA because of the Euro. Overall probably around +-0 or a very tiny loss per console which they get back with at least one sold game.



Somini said:

They are not counting the controller, which is always included. 

That is not the only thing that is missing from this rather crude teardown.

Apparently, according to this teardown, the PS4 doesn't need a power supply (more costly than a PS3 ps), and neither does it need a mainboard (more costly than a PS3 mb). Then there are a few numbers that are simply off, like apu cost and factory profits. Let's go back in time when MS found a supplier willing to assemble the XBox360 for (curiously the quoted) $16 a piece.. we all lnow how _that_ turned out. Fast forward a few years since then and we mote that labor salaries have increased drastically since. The apu cost is also rather optimistic at this time of the cycle. We are looking at a large die (320mm^2) with probably low yields compared to a fully optimised manufacturing line, and AMD wants money (we know AMD talked about $3b they expect in the MS deal. $3b by (realistically) 100-200mio units means roughly $20 per apu on top of bare manufacturing costs. All in all, I see a manufacturing price of around $360 at the end of the assembly line. Add R&D recouping, royalties and other crazy stuff and we are around $420 cost for a box at this time for the first 20mio units. Biggest money savers after one or so, are of course, memory and apu which will shave $80 from the price.



DamnTastic said:
mibuokami said:

We know for sure that they pay the IP owner to get third party game on the platform. Eurogamer did a coverage on it where avalanche said they were not getting money for Just Cause 2 on PS+ (because they don't hold the rights to the game) but appreciated the coverage while a indie dev confirm that he was getting paid to have his game on PS+.

Either way it is extremely doubtful that even half of the yearly subscription for PS+ can be converted to profit. The service would have a fair bit of overhead.

I'm really interested in how ps+ works. I wonder if sony is ever going to explain it

Extremely unlikely, they more than likely make deals with indvidual IP holder to get the game onboard for a certain fee, and airing that out is like an employee showing all workers the wage of every employee under him.




Barozi said:
Doesn't include the retailer cut and I could bet it doesn't include the manufacturer cut either.

$23 for a 500GB is insanely low. Poor Seagate, Toshiba and Western Digital.


Not for 5400 rpm. Mechanical storage is dirt cheap.

It will be Seagate. Their garbage products come standard in most electronics that use a hard drive.



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dobby985 said:

 

It will be Seagate. Their garbage products come standard in most electronics that use a hard drive.

The iFixit teardown revealed a Hitachi Travelstar Z5K500:


http://www.storagereview.com/hitachi_travelstar_z5k500_review_hts545050a7e380



Hitachi Deathstar. - Couldn't pay me to use one. :P

Go with the SSHD, size and speedy, can't complain.




www.youtube.com/@Pemalite

Good news if true.



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outlawauron said:
Fusioncode said:
They didn't factor in other costs like overhead or the retailer's cut. The extra expenses could balloon the cost to over $400.

Retailers make nothing on hardware.


Oh they definitly do. At least in europe.

I had a friend during uni days that worked at a major retailer in Portugal and they would count PS3 sales very highly. It was a great day when they sold 3 in one day (on the store she worked in). So yeah... not only they make money, as they make alot.



Conina said:
dobby985 said:

 

It will be Seagate. Their garbage products come standard in most electronics that use a hard drive.

The iFixit teardown revealed a Hitachi Travelstar Z5K500:


http://www.storagereview.com/hitachi_travelstar_z5k500_review_hts545050a7e380

So it's a Western Digital then, they bought Hitachi's HDD division years ago but license the name to help with sales to industry customers.