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Forums - Sales Discussion - Profit Numbers: Nintendo, Sony (Game Segment) and Microsoft (EDD Segment)

Alby_da_Wolf on 17 March 2009
Bitmap Frogs said:
Alby_da_Wolf said:

Very rough calculation: if PS3 is breaking even at $400, subtracting HDD cost, cost difference between Cell and Xenon, cost difference between BD and DVD, and all other smaller differences, do you think we get a sum smaller than $200? BD drives are quite cheap now, an 80GB HDD is cheap too, Cell has already been produced in more than 20 million units, while Xenon almost 30 million, and it's simpler, so we know is cheaper than Cell, but not enormously cheaper. OTOH the price difference between Pro and Arcade is high enough, compared to the additional equipment, to make Pro break even or even profit a little bit.

 

 

Your post is full of misconceptions.

You don't know how much all those components in the ps3 cost. Therefore you can't take that as a basis for your calculation.

In fact, you are ignoring associated costs, manufacturing costs, yields, and other unknown/unforeseen costs.

I call your whole post uninformed speculation, and I am being generous. You basically want to believe the Arcade is losing money.

Don't you know that the same thing can be said about opposed hypotheses too?

 



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Procrastinato on 17 March 2009
Alby_da_Wolf said:
Bitmap Frogs said:
Alby_da_Wolf said:

Very rough calculation: if PS3 is breaking even at $400, subtracting HDD cost, cost difference between Cell and Xenon, cost difference between BD and DVD, and all other smaller differences, do you think we get a sum smaller than $200? BD drives are quite cheap now, an 80GB HDD is cheap too, Cell has already been produced in more than 20 million units, while Xenon almost 30 million, and it's simpler, so we know is cheaper than Cell, but not enormously cheaper. OTOH the price difference between Pro and Arcade is high enough, compared to the additional equipment, to make Pro break even or even profit a little bit.

 

 

Your post is full of misconceptions.

You don't know how much all those components in the ps3 cost. Therefore you can't take that as a basis for your calculation.

In fact, you are ignoring associated costs, manufacturing costs, yields, and other unknown/unforeseen costs.

I call your whole post uninformed speculation, and I am being generous. You basically want to believe the Arcade is losing money.

Don't you know that the same thing can be said about opposed hypotheses too?

 

I have to side with Alby on thi s one.  The only real difference is the BD drive, and the wireless.  They rest of the costs are going to work out about the same, excepting some idiotic contract which Sony or MS would have canned long ago.  The Cell and RSX are not much different, in terms of cost, to manufacture, than the Xenon and Xenos.  The Cell production lines had teething problems, but they were worked out long, long ago.

BD drive, and wireless networking -- those are the only serious hardware differences which add to the expense of the PS3.  Honestly I think the X360 controller may be a tad more expensive to manufacture than the DS3 though, and its included with the X360, obviously.  I doubt the difference is enough to counter the wireless networking cost, but it may be close.

 



 

Viper1 on 17 March 2009

I think of few of you may want to research the published BOM's for each console. Consider that against the current exchange rate problems and then rethink your suppositions about how much each console really cost.



The rEVOLution is not being televised

Procrastinato on 17 March 2009
Viper1 said:
I think of few of you may want to research the published BOM's for each console. Consider that against the current exchange rate problems and then rethink your suppositions about how much each console really cost.

Are you suggesting that the X360 costs a fortune to manufacture today, and the PS3 is dirt cheap, thanks to exchange rates?

Would the exchange rates benefit Sony (as a Japanese company), but not be a detriment to Microsoft, given that most of the major components are manufactured by American companies... but overseas, which would raise their costs to both parties?

 



 

Viper1 on 17 March 2009
Procrastinato said:
Viper1 said:
I think of few of you may want to research the published BOM's for each console. Consider that against the current exchange rate problems and then rethink your suppositions about how much each console really cost.

Are you suggesting that the X360 costs a fortune to manufacture today, and the PS3 is dirt cheap, thanks to exchange rates?

Would the exchange rates benefit Sony (as a Japanese company), but not be a detriment to Microsoft, given that most of the major components are manufactured by American companies... but overseas, which would raise their costs to both parties?

 

Did I suggest either way?  No, I did not.    I'm merely pointing out that one group in this discussion is incorrect.

 



The rEVOLution is not being televised

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Procrastinato on 17 March 2009
Viper1 said:
Procrastinato said:
Viper1 said:
I think of few of you may want to research the published BOM's for each console. Consider that against the current exchange rate problems and then rethink your suppositions about how much each console really cost.

Are you suggesting that the X360 costs a fortune to manufacture today, and the PS3 is dirt cheap, thanks to exchange rates?

Would the exchange rates benefit Sony (as a Japanese company), but not be a detriment to Microsoft, given that most of the major components are manufactured by American companies... but overseas, which would raise their costs to both parties?

 

Did I suggest either way?  No, I did not.    I'm merely pointing out that one group in this discussion is incorrect.

 

Hmm.  Why so dodgey?  Why not enter the discussion, and share the knowledge?

 



 

Viper1 on 17 March 2009

Because getting others to research their own answers is ofttimes better than just giving the answers yourself.



The rEVOLution is not being televised

BKK2 on 18 March 2009

liquidninja said:

Note: Sega's Numbers before 2000 come from two PDF's of studies done on the Video game industry (see Sources)

Here's a better source with more accurate numbers, Sega's 1998 Annual report has a six year financial summary with data back to 1993:

SEGA Enterprises, Ltd. Annual Report 1998
SEGA Enterprises, Ltd. Annual Report 1999
SEGA Enterprises, Ltd. Annual Report 2000
SEGA Enterprises, Ltd. Annual Report 2001
SEGA Enterprises, Ltd. Annual Report 2002
SEGA Enterprises, Ltd. Annual Report 2003
SEGA Enterprises, Ltd. Annual Report 2004

SEGA-SAMMY HOLDINGS Archived Reports



Alby_da_Wolf on 18 March 2009
Viper1 said:
Because getting others to research their own answers is ofttimes better than just giving the answers yourself.

Not a bad idea, but Google gave this iSupply link http://www.isuppli.com/NewsDetail.aspx?ID=19842 where there is only an incomplete abstract, while the link in this page to the actual BOM is currently broken: http://www.isuppli.com/L2_Teardowns-Personal-HomeEntertainment.aspx?PID=1047

Data are from last October, anyway, and after Xmas old components stocks should have been cleared (and I still have to see isuppli estimate for HDD and BD to be sure they used up to date data even then...)



Stwike him, Centuwion. Stwike him vewy wuffly! (Pontius Pilate, "Life of Brian")
A fart without stink is like a sky without stars.
TGS, Third Grade Shooter: brand new genre invented by Kevin Butler exclusively for Natal WiiToo Kinect. PEW! PEW-PEW-PEW!   


MaxwellGT2000 on 18 March 2009

Gaming: Serious business!

Great chart by the way, makes for interesting info, I knew Sony tore into their PS2 profits but didn't know it wiped them all away...



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