Why? source? link? do you even have an idea of how much will cost to produce a PS3 in January 2010? Do you even know how much they cost now? Who says they can't sell a PS3 at $300 and still break even/profit? YOU? please....

@ssj12

The last quoted price I heard for single layer BluRay discs was a little over two dollars. That is most definitely not five cents. In fact that figure is probably prior to any licensing fees you must first pay, and any shipping costs you will probably incur. So to be on the light side, and saying your really good you probably have to pay two and a half dollars for the disc, and then probably an additional one and a half dollars for packaging, and manual.

So for any BluRay game your probably looking at around four dollars. Probably a little over five dollars for a dual layer disc. Please don't pull numbers out of your ass. If you want to comment on the price just go use a search engine. All it takes is a couple minutes to verify a figure for yourself. Your pricing isn't even in line with DVD. The materials alone probably cost more.

if they were breaking even on the PS3 then they would be making a pretty good profit on their financial statements correct? I mean what else would be holding them back? Look at all the other stuff that Sony has that is profitable yet they continuously post a loss.

where are the losses coming from then?  PS2?  PSP?  Think about it for a sec.  This is at the $400 price point.

This is something I failed to notice in my couple of reports on Sony's earnings report yesterday. ITmedia, covering Sony's Tokyo earnings briefing from yesterday, has a quote from CFO Nobuyuki Oneda stating that the PS3's cost to Sony is still about 10% higher than the system's price. This is current as of the end of March.

The PS3 is priced differently in each territory, but in Japan, 10% would mean about a 4,000 yen hit (this is assuming Oneda is referring to the retail cost, which may not be the case). Sony has, of late, been selling between 20,000 and 30,000 systems per week here.

As reported here yesterday (based off a Nikkei article), Oneda also said at the earnings conference that Sony has further cost savings in store for the system. He declined to comment on the possibility of a price drop.

Oneda also addressed low PSP software sales, noting that the system's attach rate is lower than hardware from other companies and that increased hardware sales is not leading to a similar increase for software sales. According to Oneda, Sony hopes to improve the attach rate through such methods as making the system capable of playing PS3 and PlayStation software.

I'm not sure what the "PlayStation software" comment is about, as the system already has access to Game Archive games (most recently Final Fantasy Tactics). But the "PS3" software comment is interesting. It could be in reference to a game like Qruton, which is being released simultaneously on both PS3 and PSP.

http://www.andriasang.com/e/blog/2009/05/15/sony_ps3_profitability/

Do you really think I would just say PS3 cost more than its selling price for no reason? As of March 31 2009 it cost 10% more to make a PS3 than what Sony gets for it. If they drop the price, the margin gets worse.

@ TheSource -
The PS3 software comment may mean PS3 exclusive PSN titles?

Well I think the new earnings reports pretty much shot your theory down. It's back in the red for the console in black, where it (IMO) belongs.

I can't begin to list the number of things that are more than likely draining the profits right now. The VAIO and Walkman parts of Sony's Networking division certainly come to mind first. Besides that they have R&D for both the PSP Go! as well as the PS3 slim, then there is the severely dropping software sales. Then there's the publishing and development costs of huge games such as Gran Turismo 5, Gran Turismo PSP, Uncharted 2: Among Thieves, MotorStorm: Arctic Edge, Echoshift, Ratchet & Clank Future: A Crack in Time, Fat Princess, Heavy Rain, God of War III, The Last Guardian, EyePet, Hot Shots Tennis PSP, ModNation Racers, The Agency, SingStar: Take That, SOCOM: U.S. Navy SEALs Fireteam Bravo 3, NBA 10: The Inside, Jak & Daxter: The Lost Frontier, LittleBigPlanet PSP, M.A.G., PixelJunk Shooter, and DC Universe Online and that doesn't even include games we don't know about yet and games recieving post-release DLC. And if all that weren't enough, there's the wild appreciation of the yen that Sony also has working against them with the reports.

If Sony is infact still losing money on every 80GB unit sold, it's a drop in the lake compared to all their other costs.

They also sell about 9 80GB PS3s for every single 160GB PS3.

Really, Sony makes a profit on the PS3?