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

Squilliam on 15 May 2009

^ Thank you sir! Thats what I was thinking, just wanted to be sure thats all.



Tease.

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arsenicazure on 15 May 2009

I think SONY and MS should have employed the dreamcast principle. Cheap, powerful hardware which doesnt cost the bank to produce. Even if they both had gone for say 10% less powerful hardware.. they probably would have reeled in a profit on the hardware by now. Bluray has sealed off SONY's profits, and 360's poor build quality has caused the xbox div to lose atleast a billion dollars.



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c. redesgined PS controller

d. SEGA back in the console business

e. M$ out of the OS business

Dgc1808 on 15 May 2009

I thought it was less...



4 ≈ One

Squilliam on 15 May 2009
arsenicazure said:
I think SONY and MS should have employed the dreamcast principle. Cheap, powerful hardware which doesnt cost the bank to produce. Even if they both had gone for say 10% less powerful hardware.. they probably would have reeled in a profit on the hardware by now. Bluray has sealed off SONY's profits, and 360's poor build quality has caused the xbox div to lose atleast a billion dollars.

 

 

Microsoft followed that principle, it was Sony that failed there.



Tease.

Chris Hu on 15 May 2009

Considering that it was over $200 at launch $40 is not that bad anymore with the 45nm chips coming out soon Sony should make a small profit on each console. But only if they don't go too insane with a price cut.



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goddog on 15 May 2009
makingmusic476 said:
Stefan.De.Machtige said:
talkingparrot said:
Despite the negative spin that will obviously be generated by the OP - this is actually good news. It shows Sony is very close to cutting even. This Fall when the 45 nm gets installed, with a smaller mother board, an external power supply, and a overall smaller chasis - you can rack that up to a savings of almost 100 bucks- Perfect for a slim line :D.

If they actually save a 100$. And that's a big if. The 45 nm switch won't get them that much. Why do you think they would pass that on to the consumer? Sony needs all the profits it can muster. It's operating more or less in survivalmode.

 

 

If they go slimline, it will lead to a decent amount of cost saving.  Dropping to 45nm Cell and RSX leads to more dies per ceramic wafer, which leads to far less ceramic used.  Plus, because the new chips use less power and produce less heat, this leads to smaller power supplies, heatsinks, and fans, which leads to a smaller motherboard overall, which means they'll be using less materials on the motherboard in addition to less materials on these other parts.  If they can manage to cram all that into a much smaller case, that'll be yet another area where they can save money on plastics.

Dropping to 45nm Cell+RSX should save them more money than any hardware reduction yet, if they can manage to create a slim ps3.

PPC based chips have a very high failure rate when it come to die fabrication for the first few months of a swithc like that historically the switch to 45 nm wont pay off till latter, you can look at most prior IBM/Freescale/Motorola PPC chips to see that

the rest of it i cant really make a guess on but i will say you are putting way to much of a price break on a PPC after a fab change they are never cheap,and it can take over a year in some cases to solve issues with the new fab size ... ppc 970fx is a good example of this, and it is in the same family of chips the cell springs from

 



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CrazzyMan on 15 May 2009

Atleast, Sony can admit how much they are losing on making PS3.
I wouldn`t expect same from M$. It will be probably left unknown, how much they lose on making x360.

Anyway, with losing 40$ and on a console and shipping like around 1,6 mln. PS3 in last Q, that makes only 64 mln. $ loss(of total 260 mln. $), while probably other costs come from creating games? Unless they starting to lose 40$ only in recent months.
On the other hand, shouldn`t they make some profit from software sales?



Every 5 seconds on earth one child dies from hunger...

2009.04.30 - PS3 will OUTSELL x360 atleast by the middle of 2010. Japan+Europe > NA.


Gran Turismo 3 - 1,06 mln. in 3 weeks with around 4 mln. PS2 on the launch.
Gran Turismo 4 - 1,16 mln. with 18 mln. PS2 on the launch.

Final Fantasy X - around 2 mln. with 5 mln. PS2 on the launch.
Final Fantasy X-2 - 2.4 mln. with 12 mln. PS2 on the launch.

 

1.8 mln. PS3 today(2008.01.17) in Japan. Now(2009.04.30) 3.16 mln. PS3 were sold in Japan.
PS3 will reach 4 mln. in Japan by the end of 2009 with average weekly sales 25k.

PS3 may reach 5 mln. in Japan by the end of 2009 with average weekly sales 50k.
PS2 2001 vs PS3 2008 sales numbers =) + New games released in Japan by 2009 that passed 100k so far

Chris Hu on 15 May 2009

@CrazzyMan
Finding out how much a given game costs to develop is just as hard to find out as the actual production cost of a console. Since development costs for HD games are a lot more then SD games who really knows how many of the PS3 and 360's games are profitable. I'm pretty sure that all the purchasable content on the PSN and X-Box Marketplace is profitable as for the physical games who really knows?
Shenmue lost tons of money that didn't take away any of the enjoyment I got from playing the game. Also in the current economy more companies loose money then make money.



ctk495 on 15 May 2009

Poor Sony.And to think last generation they were slaughtering their competition.This teaches us that one day you can be on top and the other on bottom.



Sephiroth357 on 15 May 2009

I thought they had broken even, man was I wrong.