jhlennon1 said:
That was what they were losing with all PS3's until the 80GB was released. That was the loss that was unacceptable resulting in the release of the 80GB which Sony expects to break even with production costs. They removed Emotion Engine, able to get bulk 80GB HD's cheaper etc...
Sony's own loss estimates are far higher today than their original estimates of a year ago. They never intended for the losses to be so huge. Yes they did plan for a loss, but it got out of control and their costs spiraled upwards. That's one of the main reasons Kutaragi is gone. He spent way, way too much money and didn't consider the possibility of the PS3 not selling as well as the PS2. Losses they have since minimized with the release of the 80GB PS3. Sony has been constantly refining production costs for the PS3 for months now. The previous losses were unacceptable, I know, but they have been greatly reduced. I eagerly await their next financial statement to see exactly what the improvements are but I know they are there. |
Well then, you must know something I don't. Because with a $100 price cut, I don't see how they can improve the bottom line much. The software sales are still anemic, and that's where all the profit is supposed to come from.