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Forums - Sony - iSuppli: Sony not loosing too much money with the PS3 these days

outlawauron said:
JaggedSac said:

They probably aren't selling them to retailers at $300 a pop.  So that price they are displaying is not really correct.

Most retailers may at most $4 or $5 off of hardware.

 

That's about right.  About $3-5 from what I remember working retail.  They only sell the console to attract customers to buy thinks like controllers, accessories, and HDMI cables (which retailers make massive profit).

 

Shipping costs probably me it closer to $50 per console.  At this point, they are probably spending more in promotion and marketing.



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it is still too much money ...



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Train wreck said:
Isupply prices each component separately. Since most companies buy equipment in bulk and get volume discounts, we cant gague what the true price of a ps3 is.


I actually thought they used bulk pricing



CGI-Quality said:
Vetteman94 said:
Seece said:
so $3,200,000 for every 100k consoles sold?

or is my math wrong?


Nope that is correct.   Not to bad considering once you throw in a couple games that number basically disappears, especially if they are 1st party games

Basically. This is good news indeed, if accurate that is. I just hope they continue on their trek to profitability. Marketshare is nice and all but without money in your pocket for your hard-developed investment, the investment almost seems useless.

I have to agree, say they sell 5 mill over the course of the holiday Oct - Dec or w/e that's only 150 million on losses, yes it's a big number but compared to the billions it has lost, 150 mill is pretty tame.



 

dont forget the 350$ 250gb and the older 450$ 120g

also y does this link say around 50$ for the 80g phat and the one in the thread says none?
http://news.cnet.com/8301-13772_3-10414022-52.html?part=rss&subj=news&tag=2547-1_3-0-20

no price cut next year u watch 100$ cut in fall 2011



                                                             

                                                                      Play Me

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JaggedSac said:

They probably aren't selling them to retailers at $300 a pop.  So that price they are displaying is not really correct.

Retailers make money off of software and accessories, not the hardware. The get virtually nothing from console sales.



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how does isuppli know how much the PS3 costs to Sony ?

They must have so many special deals in this industry (volume discounts, partnerships...)

they are not the average consumer with no bargain power. And I doubt isuppli has access to their contracts



yog-sothot said:
how does isuppli know how much the PS3 costs to Sony ?

They must have so many special deals in this industry (volume discounts, partnerships...)

they are not the average consumer with no bargain power. And I doubt isuppli has access to their contracts

agreed sony probably want this info out like it is so consumers think there getting more value for the $ thus resulting higher sales



                                                             

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Yakuzaice said:

Uh.....so according to that chart they were making money for the ~1.5 years before the price cut?  Doesn't seem right that costs were at $400 in January '08, yet have only fallen $64 with the slim.

The author of the article and the chart made some misleading things.  First off the article claimed the PS3 basically broke even for a while, even though as of the end of 08 iSuppli still had the PS3 losing ~$50 per console sold.  I think the author of the article made a few errors by just trying to remember what he/she thought happened rather than looking it up, so the chart he/she made is inaccurate.  Also, the gaps in time are spaced evenly, but represent a 14 month gap and a 23 month gap, respectively.  That and there were intermediate drops, not straight from $600 to $400, so all those combined make the graph lines look very misleading.

The new iSuppli numbers are good, though, and as far as I know, they are the lowest the PS3 has lost per console sold so far.  After "sold to retailer" price is factored in, it's still about ~$50 lost per console sold, but before it was always $75-100.  After another year they should break even and be profitable on hardware unless they cut the price again.



That is still hurting Sony but I'm sure that PS3 games and the PSP cover those losses.