By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Sony - Sony may be breaking even in 3 months time

theprof00 on 21 September 2009

Yes, advertising is expensive.

I'm not trying to tell you they made money. I'm saying they had room to breathe. Sony is always capable of loss-leading. But losing 100$ solely on manufacturing and losing 100$ on manufacturing+bundling+advertisements and other things is a different story.



Around the Network
pterodactyl on 21 September 2009

Do you have any actual evidence of this?



Maynard_Tool on 21 September 2009

No evidence = no point. Just speculation



03/10/09 HUGE day in my life:

http://www.vgchartz.com/forum/thread.php?id=63437&page=1

largedarryl on 21 September 2009
Noobie said:
theprof00 said:
There are not many difference between the slim and the fat.
It's just shipping costs and case costs, and some smaller pieces.

When a new model is released costs go up dramatically. They are definitely losing money on it right now, but if they actually do manage to sell however many millions it is before March (equaling 13M for the year), it probably will hit 300.

You also have to realize that the exchange rates on these Japanese products are very hard hitting. Since the US recession, Japan has been losing 30% on everything sold here. That means, even if something costs 300, it's actually costing 390$.

You know how the cost works? i sure dont think so... Sony have moved onto 45nm chips which easily reduce the cost by 50%.. plus they reduced the mother board size also which will also dramatically reduce the cost.. 

Sony sold its fabrication plans of the chips n other hardware to Toshiba.. so Sony dont need to buy new equipments to upgrade these fabrication plants. so ur analysis is pretty flawed honestly...

the chip manufactoring model work a lot differently than conventional manufactoring.

Last all these productions are probably done not in Japan. Probably ASUS n other r assembling PS3 either in Taiwan or China.. so if u have any concrete evidance that they were paying them in Yen than this sounds ok, else last part is pretty flawed also.

And you apparently don't know how much it costs to actually fabricate a PCB.  At the volumes that Sony uses, a smaller PCB won't cut more than $10-20 from the total cost to build.



Noobie on 22 September 2009
largedarryl said:
Noobie said:
theprof00 said:
There are not many difference between the slim and the fat.
It's just shipping costs and case costs, and some smaller pieces.

When a new model is released costs go up dramatically. They are definitely losing money on it right now, but if they actually do manage to sell however many millions it is before March (equaling 13M for the year), it probably will hit 300.

You also have to realize that the exchange rates on these Japanese products are very hard hitting. Since the US recession, Japan has been losing 30% on everything sold here. That means, even if something costs 300, it's actually costing 390$.

You know how the cost works? i sure dont think so... Sony have moved onto 45nm chips which easily reduce the cost by 50%.. plus they reduced the mother board size also which will also dramatically reduce the cost.. 

Sony sold its fabrication plans of the chips n other hardware to Toshiba.. so Sony dont need to buy new equipments to upgrade these fabrication plants. so ur analysis is pretty flawed honestly...

the chip manufactoring model work a lot differently than conventional manufactoring.

Last all these productions are probably done not in Japan. Probably ASUS n other r assembling PS3 either in Taiwan or China.. so if u have any concrete evidance that they were paying them in Yen than this sounds ok, else last part is pretty flawed also.

And you apparently don't know how much it costs to actually fabricate a PCB.  At the volumes that Sony uses, a smaller PCB won't cut more than $10-20 from the total cost to build.

and $10 - $20 is still a saving per unit.. than u add 45nm Cell n 65 or maybe 45nm GPU n then reduction in cost of Blu Ray n all this add up quite nicely for Sony bottom line.



http://techorate.blogspot.com/

http://caylu.wordpress.com/

Around the Network
theprof00 on 22 September 2009

^Noobie
You obviously missed the part where I said they have already cut about 50$ just switching to the ps3slim, with at least another 50$ coming once production reaches full again.
That means that they cut out 100$ of costs from switching to new components. They just haven't seen the other 50% of that yet.



dbot on 22 September 2009

theprof - Unfortunately, you are going to have a hard time of convincing this group of anything. Now that Sony has grouped the Playstation with Vaio, we will have less information to judge performance.

The $400 sku is important to Sony because it allows them to keep the average console sale above $300. Depending upon the pack in, the $400 sku will move the average PS3 cost to at least $330. As of the most recent NPD. the Xbox average console sale was at $260. That is just in NA which is the strongest territory for MS. That number will drop significantly without the $400 Elite. That's at least a $70 spread in pricing in Sony's favor.



Thanks for the input, Jeff.

 

 

theprof00 on 22 September 2009

couldn't have said it better dbot.
I think I'll put that in the OP



dbot on 22 September 2009
theprof00 said:
couldn't have said it better dbot.
I think I'll put that in the OP

Please do.  Here is the link that should thwart the skeptics a bit.  Sadly, it will probably mean the end of your thread.

http://www.gamasutra.com/view/feature/4131/npd_behind_the_numbers_august_.php?page=2

 

 

 



Thanks for the input, Jeff.

 

 

dbot on 22 September 2009
CGI-Quality said:
dbot said:

 

Arguing with logic again. Man dbot, you're such a downer.....

 

 

 

Seriously though, good find man...

I have to.  Badgnome usually calls me out when I fabricate my facts.



Thanks for the input, Jeff.