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Forums - Sony - Sony Cuts PlayStation 3 Production Cost 35% in Push for Profit

Coca-Cola on 29 December 2008

http://www.bloomberg.com/apps/news?pid=20601087&sid=aGE0AE8Gfb8c&refer=home

The newest PlayStation 3 console costs Sony $448.73 to produce, down from $690.23, El Segundo, California-based researcher iSuppli Corp. said yesterday in a statement. The machine has 30 percent fewer parts than earlier versions, iSuppli said.

so Sony is only losing $50 per console

“If they can get costs down, they will be in a better position to cut price,” said Michael Pachter, a Los Angeles- based analyst for Wedbush Morgan Securities. “I wouldn’t look for a price cut until April. They need to drop price by $100 to be competitive, and the cost of the box still won’t allow that.”

Sony spokeswoman Julie Han said the company has no plans to cut the price of the PlayStation 3 this year. Sony rose 2.8 percent to 1,900 yen yesterday in Tokyo trading and has dropped 69 percent in 2008.

Microsoft, based in Redmond, Washington, fell 17 cents to $18.96 today in Nasdaq Stock Market composite trading. It has declined 47 percent this year. Nintendo, based in Kyoto, fell 750 yen yesterday to 33,400 yen and has retreated 50 percent this year.

 



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dolemit3 on 29 December 2008

A 69% drop in the stock price in just one year is BIG. Can Sony really recover now? And lol at the price difference between Nintendo and Sony, is Nintendo like the priciest stock on the Japanese market right now?



Currently playing on PS3: God of War III

Currently playing on Xbox360: Final Fantasy XIII

Currently playing on NDS: Chrono Trigger

Smashed on 29 December 2008
dolemit3 said:
A 69% drop in the stock price in just one year is BIG. Can Sony really recover now?

 

I'm sick of these posts.. You guy's make it seem like Sony has NO chance at all. Which is very untrue.



Coca-Cola on 29 December 2008

Nintendo's stock retreated 50%? That's more than Microsoft? Weird.



akuma587 on 29 December 2008

Wow, I didn't know Nintendo's stock had dropped 50%.



We had two bags of grass, seventy-five pellets of mescaline, five sheets of high-powered blotter acid, a salt shaker half full of cocaine, a whole galaxy of multi-colored uppers, downers, screamers, laughers…Also a quart of tequila, a quart of rum, a case of beer, a pint of raw ether and two dozen amyls.  The only thing that really worried me was the ether.  There is nothing in the world more helpless and irresponsible and depraved than a man in the depths of an ether binge. –Raoul Duke

It is hard to shed anything but crocodile tears over White House speechwriter Patrick Buchanan's tragic analysis of the Nixon debacle. "It's like Sisyphus," he said. "We rolled the rock all the way up the mountain...and it rolled right back down on us...."  Neither Sisyphus nor the commander of the Light Brigade nor Pat Buchanan had the time or any real inclination to question what they were doing...a martyr, to the bitter end, to a "flawed" cause and a narrow, atavistic concept of conservative politics that has done more damage to itself and the country in less than six years than its liberal enemies could have done in two or three decades. -Hunter S. Thompson

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Max King of the Wild on 29 December 2008

45/45 sometime early next year



Snake612 on 29 December 2008

Sony is really trying do whatever it takes to make profit. Hopefully, the costs will decrease more. If the costs decreases, they will need huge exclusives to make money off of the console.



TO GOD BE THE GLORY

Aiemond on 29 December 2008
Smashed said:
dolemit3 said:
A 69% drop in the stock price in just one year is BIG. Can Sony really recover now?

 

I'm sick of these posts.. You guy's make it seem like Sony has NO chance at all. Which is very untrue.

 

Eh, Sony's stock is dropping for reasons beyond the PS3, but if you say that the company is healthy you are only deluding yourself. Sony has ALOT of restructuring to do before it can make any sort of comeback. But, Nintendo's stock fell too, so alot fo this might just have to do with the shakiness of the markets.

 

But, looking at the financials of the companies, and the actions they are taking, it is obvious that Sony is in a bad position.



Now Playing: The Witcher (PC)

Consoles Owned: NES, SNES, N64, PS1, PS2, Wii, Xbox 360, Game Boy, DS

cdude1034 on 29 December 2008
Smashed said:
dolemit3 said:
A 69% drop in the stock price in just one year is BIG. Can Sony really recover now?

 

I'm sick of these posts.. You guy's make it seem like Sony has NO chance at all. Which is very untrue.

 

This generation is over. Sony, the PS3 and the PSP have no shot at winning this generation both in console and handheld gaming.

Did you mean next gen?



 

Currently playing: Civ 6

MonstaMack on 29 December 2008

Nintendo still made over a billion in proft recently, correct?

Stock may go down for them but they are still getting the mohnies.



It's just that simple.