HP, the largest computer maker in the world, just announced increased profits. So either Sony is incompetent or the computers didn't cause the losses.

"In the game business, the deterioration in profitability was mainly due to a decrease in PS2 hardware and software unit sales, and the impact of the appreciation of the yen.  The deterioration in profitability for VAIO PCs was due to the reasons noted above that contributed to lower sales.”

So, Sony is reporting incorrect information?

Backing you, tired of banter too!

The problem was your first post, it starts off with sarcasm "on fantasy island" leading to believe that PS3 fan are ignorant and thinks sony is making boat load of money. But the subject of this thread is actually to discuss how much they loose per console. Your sarcasm was not necessary and could be considered as flame bait. Also what you said was not related to the subject, the subject was: how much sony is loosing per console? I could care less if they loose 1 Billion in 2 quarter, the problem is you didnt give your opinion to have an intelligent discussion. What you wanted was to make an exageration to have peoples react, your sarcasm and your non relation to subject shows it. This is a bannable offense, so yes im backing dsgrue.

After reading all posts please not that im not backing dsgrue on numbers tho, only when he said that they should ban you.

@Icyedge

I also find it funny he decided to add that little quip about PSP no longer being profitable because of the Go. Since when did high sales numbers equal profit, while low sales equal loss? PS3 has been having its best months in years, but it's still at a loss. However, I don't think anyone believes that the Go, at its price point, is selling at a loss. Hate the Go all you want, it's still bringing extra profit to Sony they might have otherwise not gained.

@damndl0ser

Production costs don't go down weekly, but most likely every few months. Otherwise, we wouldn't have a profitable PS2 at $99. Your point about we would be paying less for items off the assembly line is incorrect. Companies find ways to save money on the production of their goods all the time. That doesn't mean they are going to pass it along to the costumer all the time. Usually it is only passed along to help it stay afloat in tough waters, or if the product is several years old and isn't selling as well as usual.

The Wii is a perfect example of this. Nintendo is still making money off of the Wii. Do you honestly think that they only just put into place measures to make the product just cheap enough for them to produce, so they could drop it to $199? Of course not. Most likely it's been produced for under $199 for months.

I have no idea if PSP Go is breaking even per unit or not...it most likely is, which then only adds more to my observation as to what is dragging down the division.  Everything else is profitable, hmmmmm.....let's think about it?  As to Mr Moderator (aka Icyedge), maybe if people would actually READ financial reports before spouting silly comments on this site, these threads wouldn't spin off.  I'm not sure how you don't see the relationship between how much it's losinf now, and the expectation for profits...maybe we have some economics majors here to explain these theories to you.

It's not something that can be determined easily. You have to factor in how much money sony lost on each individual model based on sales, which would be dramatically different between model, year, and amount sold.

Don't talk about just the slim, or just the older model (don't call it fat, that's not cool) because when you get down to it, it's still a PS3, and it still lost money that Sony still hasn't seen flip a penny.

So, once you add up those different losses per system, model, year, and all that good stuff, then you'll know how much Sony has lost on PS3. Remember, the original PS3 models had a price of around 840 bucks.

It's not something you can just come up and say "Oh, it's 41 bucks per system". That number may only hold true for the Slim, while the older, 2006 model PS3's would be much higher, and since neither has turned profit.... ah, nevermind, I think you get where I'm going with all of this.

It's in Sony's best interests to have the consuming public believe they are still losing on each console sold, when taking the whole world into account. IN individual markets they will be making a profit. When you convert the retail price in each market yo Yen there is a substantial price differential which I think can't be entirely accounted for by distribution cost differentials, tariffs and taxes. Basically those of us around the world who are paying a price that is profitable to Sony are subsidising the consumers in the markets where the losses are being made.

The definite current loss making markets are: USA (cheapest PS3 market in the world) and Japan (second cheapest market).

Possible current loss making market is: the UK

Likely current profit making markets are: everywhere else.

So you Yanks, Japanese and Poms, you better start showing the rest of us some gratitude for helping to fund your gaming habits!

As soon as consumers around the world start to think that Sony are making a profit per console on average, the next round of PS3 price drop rumours will start. Once they start making a profit per console they won't want to drop the price unless they can keep making a profit. That means they don't want to confirm per console profits too soon.

I think it's likely they are already covering their material costs. What they are probably still losing on is the marketing and distribution.

All pure speculation of course.

Mass production is always cheaper. Because material providers sell cheaper depending on how much quantity you buy. Same goes for Sony's suppliers they will all sell Sony cheaper stuff if Sony orders massive numbers of units. Sony is probubly ordering tons of tons of units expecting the market to turn around now that their console is at a competitive price.

I'd say Sony is probubly loosing about 25USD on every console sold in America/Japan and not loosing anything in Europe where it is priced higher. Again this has to do with supply and demand. Their is far more demand in America/Japan for PS3's so Sony can sell units cheaper here then it can in say the U.K