Didn't SCEE boss just say that they still are selling PS3 in small loss in Europe, but games turn SCEE PS3 business to profit? I also doubt those prices of Cell and RSX. Cell is produced by Toshiba and they probably will not sell those chips without any profit to Sony.

RSX rights are owned by nVidia so that also costs more than just production expenses for Sony (MS did pay then self sick with original XBox GPU, because nVidia didn't drop price of it even production cost did go down).

Sony roughly makes a $50 loss for every PS3 sold. Looks like Sony will not be able to afford a PS3 price cut until the second half of the year when the Cell chip and RSX chips are cheaper to manufacturer due to Sony's latest PS3 revision.

Don't think a loss of about $49 is only

I know but taxes are different in each country.

kowenicki, isn't the yen pretty much the only currency in the world that isn't weakening?

hmm, cant not say im too surprised. i think they are low balling rsx, and the cell, for proprietary tech, there simply is not enough orders for it to depress the price. the smaller fab manufacturing should help, but will take a bit die shrinks for PPC based cpus have traditionally had issues with high failure rates right after a shrink for month or so (yes this effects the 360, and the wii).

the other problem is shipping and storage until shipping, packaging costs, which do not really go down over the life of the console... though right now they may be paying less to ship with the slide of fuel costs globally.

the best thing that could happen for japan would be for the central bank to deflate its currency, it dosnt have to kill it, but lower it enough so that the euro/pound become less of an issue for companies that depended on them prior to the collapse. this would help alot of japanese companies who right now are struggling, and may have to lay people off to highlight the issue look at toyota which will post its first operating (150 billion yen) loss in 79 years. a year removed from making It made a record operating profit of 2.27 trillion yen last year. this should help show the issues companies like sony are facing. the only reason nintendo is not in pain is high margins and phenomenally successful game sales.

Looks like sony really cant afford a cut for the next six months...which wont help them in their quest to outsell the 360

Yeah, cause Isuppli has been so accurate in the past.

sh... i dont like this ... i hope it will be cheaper for Sony to produce the PS3 soon :/ (can someone tell me what the 360 costs Microsoft per Console?)

It's iSuppli.

Remember this?

the installed base of the PlayStation 3 will exceed that of the Wii, iSuppli predicts. The PlayStation 3 will reach an installed base of 38.4 million units in 2011, rising at a CAGR of 39 percent from 10.3 million in 2007. The Xbox 360 by 2011 will grow to 32.3 million installed base units, rising at a CAGR of 15.4 percent from 18.2 million in 2007.

While the PlayStation 3 will take the lead by 2011, the percentage of the installed base controlled by the three new-generation consoles will be remarkably even. The PlayStation 3 in 2011 will account for 35.4 percent of the installed base, while the Wii will take 34.8 percent and the Xbox 360 will be at 29.8 percent.

And this

The Nintendo Wii is perfectly suited for the casual gamer with its mass-market appeal, its fun motion-sensor controllers and its quickly growing portfolio of games. The installed base for the Nintendo Wii will grow to 37.7 million units by 2011, rising at a Compound Annual Growth Rate (CAGR) of 20.3 percent from 2007.

They have no idea what they're talking about. Could be lower, could be higher.