Considering R&D, marketing and such, the cost associated with each console sold is a bit more than 399§. They should make that up with subscriptions and software.

Btw: does retailers get any profit at all from selling consoles?

Yes, the whole thread where people were talking about profits PER SINGLE HARDWARE componets, as in the cost of CPSU, GPU, RAM etc which is what this thread is about. You were the first to bring in labour,engineers, exectuves(...) stuff into the thread.

And you obvioulsy do care since you took your time to post your condescending, off topic post, so dont even try to spin that.

And thats pretty rich coming from you.  Compare your post/modertation history with mine, and then come back to talk about fanboy war lens.

people were talking about Sony selling the console at a profit, which they aren't yet... just saying.

Sony’s PlayStation 4 Costs $381 to Build

''to build'' 

I know what the title is, but folks were making comments about Sony making a profit on each console sold.

Where are retail + distribution margin ?

SnakeDrake said: So this is Sony's first console with each unit making a profit(small as it may be)

No. It still makes a loss.

Think about it, in that $18 - where's the shipping costs? The R&D? The retailer's cut?  The margin for returned units (yes, you do pay for other people's machines breaking. If they were 100% reliable, it'd be cheaper again). The retailer's cut alone will be anywhere between $25-75 per unit. So I would imagine Sony is making a loss of about $80-150 on each console. Not brilliant, but MUCH better than PS4.

Honestly, everyone on this forum just thinks Sony pockets every penny of the retail price of every console and game. Not even close.

Wiped said: SnakeDrake said: So this is Sony's first console with each unit making a profit(small as it may be) No. It still makes a loss. Think about it, in that $18 - where's the shipping costs? The R&D? The retailer's cut?  The margin for returned units (yes, you do pay for other people's machines breaking. If they were 100% reliable, it'd be cheaper again). The retailer's cut alone will be anywhere between $25-75 per unit. So I would imagine Sony is making a loss of about $80-150 on each console. Not brilliant, but MUCH better than PS4. Honestly, everyone on this forum just thinks Sony pockets every penny of the retail price of every console and game. Not even close.

I think it was Ign, but they said that Sony makes a profit after a game is sold.

So, assuming that this report is correct, 381+ 60= 441$ total cost after shipping and other costs (i have no idea how much the other costs would be) 

So the average consumer gets the ps4 (400) + game (60)+ Ps+ (20)= 480$ rough estimate. the doesn't factor in the 2.4 attach rate, and my estimate on additional costs is probably off, but i don't think Sony  is really losing any money on PS4 .

Rychussnik said: Wiped said: SnakeDrake said: So this is Sony's first console with each unit making a profit(small as it may be) No. It still makes a loss. Think about it, in that $18 - where's the shipping costs? The R&D? The retailer's cut?  The margin for returned units (yes, you do pay for other people's machines breaking. If they were 100% reliable, it'd be cheaper again). The retailer's cut alone will be anywhere between $25-75 per unit. So I would imagine Sony is making a loss of about $80-150 on each console. Not brilliant, but MUCH better than PS4. Honestly, everyone on this forum just thinks Sony pockets every penny of the retail price of every console and game. Not even close. I think it was Ign, but they said that Sony makes a profit after a game is sold. So, assuming that this report is correct, 381+ 60= 441$ total cost after shipping and other costs (i have no idea how much the other costs would be)  So the average consumer gets the ps4 (400) + game (60)+ Ps+ (20)= 480$ rough estimate. the doesn't factor in the 2.4 attach rate, and my estimate on additional costs is probably off, but i don't think Sony  is really losing any money on PS4 .

Also add a $42 (60-18) on each additional controller sold. Considering the number of COD:G sold, there were probably a whole lotta those. That would make a nice profit right there.

oldbucsfan said: Rychussnik said: Wiped said: SnakeDrake said: So this is Sony's first console with each unit making a profit(small as it may be) No. It still makes a loss. Think about it, in that $18 - where's the shipping costs? The R&D? The retailer's cut?  The margin for returned units (yes, you do pay for other people's machines breaking. If they were 100% reliable, it'd be cheaper again). The retailer's cut alone will be anywhere between $25-75 per unit. So I would imagine Sony is making a loss of about $80-150 on each console. Not brilliant, but MUCH better than PS4. Honestly, everyone on this forum just thinks Sony pockets every penny of the retail price of every console and game. Not even close. I think it was Ign, but they said that Sony makes a profit after a game is sold. So, assuming that this report is correct, 381+ 60= 441$ total cost after shipping and other costs (i have no idea how much the other costs would be)  So the average consumer gets the ps4 (400) + game (60)+ Ps+ (20)= 480$ rough estimate. the doesn't factor in the 2.4 attach rate, and my estimate on additional costs is probably off, but i don't think Sony  is really losing any money on PS4 . Also add a $42 (60-18) on each additional controller sold. Considering the number of COD:G sold, there were probably a whole lotta those. That would make a nice profit right there.

true, i forgot about that, i think after someone picks up the ps4 and a game and ps+ (which just about everyone is going to do) Sony has made a small profit, 
accesories and other stuff is just added money.