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Forums - Sony - Is sony making money on the 40gb PS3?

*~Onna76~* on 09 April 2008
Prodigy_BE said:


I've said it once, and I will say it again: Blu-ray is such a big victory to them, average consumer just doesn't realize it yet.
Xbox 720 will have to stick with dvd (and never be succesful), make its own high capacity disk (which means no movie player capability and thus will fail) or go for Blu-ray technology.
That last option is MS' best bet, but that will mean that Sony makes a little money on every Xbox 720 MS sells, a little money on every Xbox 720bought, AND a little money on every Blu-ray movie the Xbox 720 consumer buys.

Believe me, harsh times are a' comin' for MS, and they know it.

If you put it that way, it really makes a lot of sense and therefore the-not-so-bright-present for Sony (as most like to put it like this), will have a glorious golden future. With the other way around for Microsoft I guess... Oh yeah, I see a future with many wonderful RPG releases on the PS3... don't you?



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dbot on 09 April 2008
NJ5 said:

For the umpteenth time:

No, they're not making profit on hardware. Here is the transcript of their latest conference for investors:

http://seekingalpha.com/article/62529-sony-corp-f3q07-9qtr-end-12-31-07-earnings-call-transcript?page=-1

Daniel Ernst - Hudson Square Research

(...)

And then, on the PS3, can you discuss where the cost down reduction is going? It took production cost at launch to where it is today. What has been the per-unit reduction you have been able to achieve?

Nobuyuki Oneda - Executive Vice President and Chief Financial Officer

(...)

Dan, your second question, PS3 cost update, since the introduction the cost has drastically decreased. How much I cannot disclose it. However, we can expect that sometime in late fiscal year '08, the cost to be equal to the selling price. Currently, the cost is higher than the price, but toward the second half the fiscal year '08 we could catch up.

By the way, second half of fiscal year 08 means between October 2008 and March 2009.

 


I think you should wait until the new financials are released.  The Q3 2007 results, that you constantly quote, cover a period that is 3 - 6 months ago. 

 There are reports in December/January that the BOM for the 40 gig is sub $400.

http://mygen.com.au/article.php?page_id=75602388148801047&format=4&se_id=29&rss=1

 



Thanks for the input, Jeff.

 

 

hunter_alien on 09 April 2008

They probably come out even on hardware manufacturing and sales . IMO the console itself might not loose money , but bundles , commercials and all of this put together may leed to a loss . Now software sales , and PS2/P sales will probably make it look as they are allready making lots of cash ....



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NJ5 on 09 April 2008
dbot said:

I think you should wait until the new financials are released. The Q3 2007 results, that you constantly quote, cover a period that is 3 - 6 months ago.

There are reports in December/January that the BOM for the 40 gig is sub $400.

http://mygen.com.au/article.php?page_id=75602388148801047&format=4&se_id=29&rss=1

 


The information I quoted is from Sony's CFO, and it was out in January. It's the best we have right now. The report you linked to is from an analyst, and we all know how reliable analysts tend to be.

 



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Griffin on 09 April 2008

Last year when they had the 60gb unit they said it be equal cost in March to make. Which would of been about $600 USD when they said it. Take out the PS2 stuff lower the GB by 20 and take out 2 USB ports and you have the 40gb unit costing about $500. this would be my guess.

Once you add in the fact that they want it to be profitable in 6-12 months, the $500 cost of the 40gb unit right now sounds about right. I'm also not sure how the USD has done with other currencies but its stayed about = with the Canadian $ over this time.



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konnichiwa on 09 April 2008
*~Onna76~* said:
Prodigy_BE said:


I've said it once, and I will say it again: Blu-ray is such a big victory to them, average consumer just doesn't realize it yet.
Xbox 720 will have to stick with dvd (and never be succesful), make its own high capacity disk (which means no movie player capability and thus will fail) or go for Blu-ray technology.
That last option is MS' best bet, but that will mean that Sony makes a little money on every Xbox 720 MS sells, a little money on every Xbox 720bought, AND a little money on every Blu-ray movie the Xbox 720 consumer buys.

Believe me, harsh times are a' comin' for MS, and they know it.

If you put it that way, it really makes a lot of sense and therefore the-not-so-bright-present for Sony (as most like to put it like this), will have a glorious golden future. With the other way around for Microsoft I guess... Oh yeah, I see a future with many wonderful RPG releases on the PS3... don't you?


 A far away future if you ask me :(;