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Forums - Sony Discussion - The PS3 is profiting ($$$$$$$) because ..........

Gamer4eva on 12 January 2009

If what HHG (HipHopGamer) is saying is true ("PS3 costs $299 to build")and it most likely is, because he has been right on numerous occasions, then the PS3 really must be profiting.

We know for a fact that the $499 PS3 is profiting, there is no way it cannot be..

However if what HHG is saying is right, SONY make at least $100 profit off of the PS3 on the $399 model.

Now, if what he is saying is false and Isuppli is right (PS3 costs $420 to make, i think), then it must be profiting is some areas such as the following.

UK: PS3 sold for $444 (PROFIT) - £299

EU: PS3 sold for $590 (PROFIT) - 399 Euros

JP: PS3 sold for $436 (PROFIT) - 39K Yen

Now, i might be wrong in the prices but feel free to correct me and state your own opinion.

 



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ymeaga1n on 12 January 2009

Joke thread? Stop making foolish and unfounded assumptions. David Reeves was quoted as saying Playstation brand "on target" to start making profit. You don't know more information than Reeves does, so no, if PlayStation brand is on target to turn a profit, PS3 is not making a profit.

EDIT: http://www.joystiq.com/2009/01/06/reeves-playstation-on-target-to-start-earning-profit/

 

Reeves: PlayStation 'on target' to start earning profit

89 Commentsby Ludwig Kietzmann Jan 6th 2009 9:35AM 
Filed under: Sony PlayStation 2, Sony PlayStation 3, Sony PSP, Business


Step 1: Release PlayStation 3.

Step 2: ?????

Step 3: Profit! 

David Reeves, President of Sony Computer Entertainment Europe, believes that Sony is "on target" to figure out that elusive second step. "The most important thing for us as a company in the very short term is for us to start making money," Reeves explained rather candidly in a recent article on the official PlayStation website. "This is a pledge that was made last March and is something that we are still very much on target to achieve." His tone was considerably more positive than one adopted by recent rumors, which have Sony on the "brink of upheaval."

Quizzed -- or rather, politely asked to contribute in a promotional piece -- about 2009's most exciting developments, Reeves noted that once the company's flagship system is out of the financial woods, things will really take off for PlayStation and its fans. "2009 promises to be a very exciting year for PS3, with blockbuster titles such as Heavy Rain and Killzone 2 coming out, whilst we have the music and video download service becoming available towards the end of the year," he said. And don't forget about our pal, the PSP, which will have games taking "full advantage of the new enhancedscreen."

 




disolitude on 12 January 2009

Hip Hop Gamer? lol Thats great.



saicho on 12 January 2009

we'll know when Sony release the earning report on January 29



MikeB predicts that the PS3 will sell about 140 million units by the end of 2016 and triple the amount of 360s in the long run.

11ht11 on 12 January 2009

whats HHG?



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NJ5 on 12 January 2009

Hip Hop Gamer? That sounds even more credible than Surfer Girl.

Ask Hip Hop Gamer how much the Wii and the 360 cost to make if you get a chance.

PS: You forgot to remove taxes from the European prices.

 



My Mario Kart Wii friend code: 2707-1866-0957

Max King of the Wild on 12 January 2009

Doesn't isupply also go by market price and not sony price? Since sony most likely has contracts with the manufacturers of their parts and buys in bulk they would pay less than us.



Rainbird on 12 January 2009

Even if the PS3 costs 299$ to build, Sony is not making a profit of 100$ for each sold.
Most people seem to forget this, but 399$ is the retail price, not the price Sony is paid. Lets say that retailers buy the PS3 for 375$ (I have no idea if this fits or not), when that happens, Sony has still paid for storage and transport to said storage.
Once we get to the box it self, we have the following: a Dualshock 3 controller, three different cables, the box it self and the packaging inside the box.

In short, Sony does not make a 100$ profit because it costs them 299$ to make one PS3 and retail price is 399$.



theprof00 on 12 January 2009

I would take a bullet for HHG, son!



TacoBoy49 on 12 January 2009

Other costs associated like packaging,distributioon,store's cut of sales and marketing expences have to be taken into account. On top of that, SCE failed to make a blockbuster game for themselves this year. Nothing they made was on the level of gears of war fable 2 wii fit or mario kart. Lbp was bundled and had a massive ad campaign. I doubt it profited. Also?the PS3 had the worst software sales for the year of the big 3.