What are you talking about? They are getting PS3's in Europe as well as in America (In close proximity of purchases). You're acting like its a different product. No it's just created for your region and that doesn't make it more profitable.

As I wrote it just 2 posts before, the PS3 is sold 400$ in the US and 400€ in Europe.
400€ = 580$

So I think he's right in thinking that the PS3 is more profitable in Europe than in the US.

@Bokal: you're forgetting there is a 15-25% tax on goods in Europe, which by law has to be precalculated in the price of sale (exact percentage is dependent on country)

So although both the Netherlands and Luxembourg will have the PS3 at €399 at the store, Sony will make more money in Luxembourg because the VAT is only 15% there rather than the 19% it is in the Netherlands.

He's basing his assumption on the currency exchange.

A €399 PS3 over here is equivelent to $582. Assuming the PS3 costs $400 to make worldwide, that leaves a $182 surplus. Meaning it could possibly be profitabe/almost profitable in Europe.

No, nobody knows how much they cost to make !

I don't think Sony would make an announcement about that until they hit the break even point. Reckon that will be hit by mid 2010.

The die shrink would make them profitable but I think they will have to tie that in with a price drop to stay competitive with the Xbox and Wii. Hence no long term gain in profitability.

It's impossible to get the exact cost even for Sony. Different parts come from different plants and cost raise/fall independently. However, Sony would be able to give the number pretty close to the exact hardware cost.

But then again, we all know hardware cost is just a small part of the equation. Manpower is much more costly, especially having to pay the CEO's to play popcap games (hey, someone else said it. not me.)

Surely this can't be right?

Their accounting/ERP system really should have that data available - or Sony would not know how much money it has at the end of the day and I'm sure that's not the case (not to mention that'd be illegal)!

(It's probably not available in the most direct of forms, but it really must be available somewhere. I've not yet seen any ERP system that didn't offer this data though. And for good reason. Besides, companies like Sony are not likely to buy single parts at the current cost price anyway - it's highly irregular not to have short to medium term contracts for pricing of parts)

You're right. Let's assume 20% taxes. It makes the PS3 320€ = 470$

I think they are now selling at a Profit of a nice decent 18 cents per console on the 40GB. And taking a minor loss of around 15$ on the MGS4 bundle. And a loss of about 10 cents on the new 80GB.

I also think they are raking in a profit of around 10-20 $ in the european market on all available sku's.


Yes.... yes I'm making all of this up. And I hope it's all true.....

@Bokal -- don't forget to factor in Tax, Retailer Cut, Transport costs, etc...