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Forums - Sales - PS3 production costs decreasing 70%... does that mean it's profitable?

lhill81 on 23 August 2009

its hard to tell if they are making money on the ps3 itself yet or still loosing, but the more ps3 they sale, the more software sold and that is where the big money rests, another thing to keep in  mind is the ps2 is out saleing 360 and ps3 , not sure anout wi, but ps2 still saleing very well and they are making lots of money on that system , with how long its been on the market, and cost to produce is very low. so there gaming division really is not doing to bad, factor in ther psp, pspgo and software and accecories for all systems.  sorry for spelling , in hurry



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daiyumn on 23 August 2009

uh



I am a loyal SONY fan and will always be.

I am also a PS1, PS2, PS3 and a PSP owner.

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Click this ----->  http://vgchartz.com/forum/thread.php?id=83696to post your top 10 games.

NJ5 on 23 August 2009
Xxain said:
JEDE3 said:
lol slime - Sony wasn't losing 100 on the phats. They wont go more on the slims. And NJ5 also said sony would only drop the price 50 dollars this year.

thats what I dont get...they were losing 40 bucks on Phat soooo how are they losing more on something thats cheaper to make???????

Because they decreased the price by $100? 

 



My Mario Kart Wii friend code: 2707-1866-0957

Millennium on 23 August 2009
Xxain said:
JEDE3 said:
lol slime - Sony wasn't losing 100 on the phats. They wont go more on the slims. And NJ5 also said sony would only drop the price 50 dollars this year.

thats what I dont get...they were losing 40 bucks on Phat soooo how are they losing more on something thats cheaper to make???????

Because they dropped the price by more than the difference? Even if the Slim is $100 cheaper to produce than the original, the $299 price point would still represent a loss, and in all likelihood the difference in costs is smaller than that.

Complexity is not depth. Machismo is not maturity. Obsession is not dedication. Tedium is not challenge. Support gaming: support the Wii.

Be the ultimate ninja! Play Billy Vs. SNAKEMAN today! Poisson Village welcomes new players.

What do I hate about modern gaming? I hate tedium replacing challenge, complexity replacing depth, and domination replacing entertainment. I hate the outsourcing of mechanics to physics textbooks, art direction to photocopiers, and story to cheap Hollywood screenwriters. I hate the confusion of obsession with dedication, style with substance, new with gimmicky, old with obsolete, new with evolutionary, and old with time-tested.
There is much to hate about modern gaming. That is why I support the Wii.

Slimebeast on 23 August 2009
NJ5 said:
Xxain said:
JEDE3 said:
lol slime - Sony wasn't losing 100 on the phats. They wont go more on the slims. And NJ5 also said sony would only drop the price 50 dollars this year.

thats what I dont get...they were losing 40 bucks on Phat soooo how are they losing more on something thats cheaper to make???????

Because they decreased the price by $100? 

 


Exactly



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Slimebeast on 23 August 2009
SamuelRSmith said:
I have to ask, do companies pay insurance on goods that they're shipping?

Like, if the boat sinks, would the money Sony would have made just sink to the bottom of the ocean, or can they claim insurance on it?

Insurance, yes of course. Insurance is always built in the price when one company buys that service from another company transporting something.



sguy78 on 23 August 2009

I don't think the PS3 is profitable just yet.



Slimebeast on 23 August 2009
JEDE3 said:
lol slime - Sony wasn't losing 100 on the phats. They wont go more on the slims. And NJ5 also said sony would only drop the price 50 dollars this year.


Yeah, NJ5 actually tricked me into believing in a $50 price drop for a while when he kept pumping out those Sony doom threads. But the whole time, apart from a short period, I've been a firm believer in a $299 PS3 in Aug/Sep (that prediction is well documented in my post history). The Slim took me by surprise though.

On PS3 phat I believe Sony was losing at least $50 at the $399 price. So even if they're saving $100 by making the Slim, it still would cost at least $350 to produce.

But all is good, they can make those $50-100 back on periferals and software license revenue.



NJ5 on 23 August 2009
Slimebeast said:
JEDE3 said:
lol slime - Sony wasn't losing 100 on the phats. They wont go more on the slims. And NJ5 also said sony would only drop the price 50 dollars this year.


Yeah, NJ5 actually tricked me into believing in a $50 price drop for a while when he kept pumping out those Sony doom threads. But the whole time, apart from a short period, I've been a firm believer in a $299 PS3 in Aug/Sep (that prediction is well documented in my post history). The Slim took me by surprise though.

On PS3 phat I believe Sony was losing at least $50 at the $399 price. So even if they're saving $100 by making the Slim, it still would cost at least $350 to produce.

But all is good, they can make those $50-100 back on periferals and software license revenue.

You must have been reading threads from someone else, because in December 2008 I was already predicting a $100 price cut:

http://www.vgchartz.com/forum/thread.php?id=53209

 



My Mario Kart Wii friend code: 2707-1866-0957

Lord Flashheart on 23 August 2009
NJ5 said:
Xxain said:
JEDE3 said:
lol slime - Sony wasn't losing 100 on the phats. They wont go more on the slims. And NJ5 also said sony would only drop the price 50 dollars this year.

thats what I dont get...they were losing 40 bucks on Phat soooo how are they losing more on something thats cheaper to make???????

Because they decreased the price by $100? 

 

As well as R&D into the new components and the new cost incured in the manufacturing process for the components.

Those cost will be covered quite quickly depending on how well it sells and how much they cost in the first place so it's a short term cost at the moment but still a cost.



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