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Forums - Sony - Sony losing about $40 on each PS3

Staude on 15 May 2009
Stefan.De.Machtige said:
@Staude

Maybe it's better to have (some) angry publishers, than to lose to much money. There is no doubt that Sony will have to make tough decisions. Most likely they wll throw the publishers a bone of a 40$ a 50$ pricecut and recupe as many profits. That's the overall best solution.

 

Probably. Unfortunately they'll need to hit the 300 dollar range to really make a big impact in the market i think though.



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Smashchu2 on 15 May 2009

Either scenario is bad at this point. If I remember correctly, they wont make a profit until the 40millionth console sold. I doubt, at this rate, they will. Sales for the system have been declining for a while, so the PS3 may very well be on it's last legs. The last place console doesn't live for very long (look at the Gamecube. It was dying in 05 and was dead though 06). Cutting price will not create long term effects and the cut will only add to the cost.

A price cut has always been a way or getting rid of products. You lower your products price if it isn't selling. The price cuts for the HD bros have been survival at best. I don't see Sony turning any profit on the PS3.



Scoobes on 15 May 2009
rover said:
Scoobes said:
At least the loss is a managable loss now. That's only 1 game and they start making money again. I still think they'll drop the price this fall but it probably won't be $100 unless they manage to drastically reduce the cost of the hardware. As someone else pointed out, the 45nm Cell isn't going to cover THAT much.

It'll probably be at about break-even price soon though, so they'll enjoy a bit of extra money for the rest of the year.

 

Err... I don't think a single game sale nets Sony the missing $40. Perhaps if it's a Sony owned and published title, but Sony wouldn't make $40 off of a copy of Resident Evil sold... More likely they'd make something closer to $4...

Errr... good point . Kinda missing the obvious wasn't I? So, let's say... about 2-4 Sony published games minimum? Damn... that's still bad.

 




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Squilliam on 15 May 2009
Ail said:
Any price cut that is supposed to help boost sales to 13 millions $ this year is going to have to be 100$.
300$ is a huge psychological number for consumers and keeping the price higher than that will most likely prevent Sony to reach its targets...

As for how much it will cost Sony, it is going to depend how much the move to 45mm is going to save them.

If they currently loose 40$/console I'm guessing at best they could introduce the new model with smaller chips, drop price by 100$ and end up still loosing 40-50$/unit after the cut......

That could be a  expensive price cut, which would explain why they anticipate further losses from SCE for the coming year. Since the sales are down over last year, sales would have to rise in the order of 60% over current trends during Q4/1 2009/10 to make that.

 



Tease.

Euphoria14 on 15 May 2009

Quick question.

If PS3 costs £299.99 in Europe (which is around $455 US) couldn't that be almost making up for the $40 loss per consoles sold in US and Japan?



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twingo on 15 May 2009
Noobie said:

 

Asked specifically about pThat, combined with an underwhelming software lineup, has resulted in slow sales.

http://www.cnbc.com/id/30749308

. 

 

I never take these articles seriously, and reatrded bs like that is why.

best line up out of the 3 in now underwhelming, media stupidity in NA is baffling.



Euphoria14 on 15 May 2009
twingo said:
Noobie said:

 

Asked specifically about pThat, combined with an underwhelming software lineup, has resulted in slow sales.

http://www.cnbc.com/id/30749308

. 

 

 

I never take these articles seriously, and reatrded bs like that is why.

best line up out of the 3 in now underwhelming, media stupidity in NA is baffling.

I hear you on that. The US media likes to write about things they have zero clue about.

 



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Squilliam on 15 May 2009
Euphoria14 said:
Quick question.

If PS3 costs £299.99 in Europe (which is around $455 US) couldn't that be almost making up for the $40 loss per consoles sold in US and Japan?

I think theres something like $40 (pounds lol) VAT included in that price @ 15% VAT. So really they are paying U.S $395 less whatever retailer margins exist.

 



Tease.

Squilliam on 15 May 2009

Does anyone else think that they are quoting their costs against the retail cost, so they imply that its $40 above what you pay at retail and they didn't factor in the retailers margins so the difference may actually be higher than stated by about $18 or so.



Tease.

Ail on 15 May 2009
Squilliam said:
Does anyone else think that they are quoting their costs against the retail cost, so they imply that its $40 above what you pay at retail and they didn't factor in the retailers margins so the difference may actually be higher than stated by about $18 or so.

 

If I remember well from last gamestop financial report, their margin on hardware is around 5%( I know, very small).

Seeing how the Sony guy that leaked the information is the CFO I would expect the number he gave is actual cost for Sony compared to how much Sony sells the hardware to retailers.

If you factor a 20$ margin we have something like Sony sells the PS3 to retailers for 379$ and it actually costs 419$ to make and ship to them...



PS3-Xbox360 gap : 1.5 millions and going up in PS3 favor !

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